Beyond the Basics: Advanced 2026 Tax Planning for High-Net-Worth Earners

If you're paying $50,000 or more in taxes each year, you already know that basic tax preparation isn't enough. You need a strategy: a forward-thinking approach that minimizes your tax burden legally and positions your wealth for long-term growth.

The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, has fundamentally changed the game for high-net-worth earners. And if you're still relying on last year's playbook, you're likely leaving significant money on the table.

Let's break down the advanced tax planning strategies that matter most for 2026: and why working with strategic advisors (not just accountants) makes all the difference.

The OBBBA Game-Changer: What High Earners Need to Know

The OBBBA didn't just tweak the tax code: it rewrote major sections of it. For high-net-worth individuals and business owners, the most impactful changes include:

• Permanent estate and gift tax exemptions of $15 million per individual ($30 million for married couples)

• Increased SALT deduction cap of $40,000 (with phasedown beginning at $500,000 MAGI)

• Permanent Qualified Business Income (QBI) deduction for pass-through entities

• AMT exemption permanence with adjusted phaseout thresholds

These aren't minor adjustments. They represent a fundamental shift in how wealthy individuals should approach tax planning for the foreseeable future.

The $40,000 SALT Strategy: Maximizing Your State and Local Deductions

For years, the $10,000 SALT cap frustrated high earners in states with significant income and property taxes. The OBBBA's increase to $40,000 provides meaningful relief: but only if you plan strategically.

Here's what you need to consider:

Timing is everything. Property tax payments can be strategically timed to maximize your SALT deduction in the years where it provides the greatest benefit. If your modified adjusted gross income exceeds $500,000, the phasedown begins: meaning coordination across tax years becomes critical.

Bunching strategies still work. For some high earners, bunching deductions in alternating years (taking the standard deduction one year and itemizing the next) can produce better long-term tax outcomes than itemizing every year.

State-specific considerations matter. Your state's tax structure significantly impacts how you should approach SALT planning. A virtual tax consultation with advisors who understand multi-state implications can uncover opportunities you might miss.

Permanent QBI: A Windfall for Construction and Trade Business Owners

The Qualified Business Income (QBI) deduction: which allows eligible pass-through business owners to deduct up to 20% of qualified business income: is now permanent under the OBBBA. For construction companies, trade businesses, and professional service firms structured as S-corps or partnerships, this is massive.

But here's where it gets interesting: the QBI deduction has income limitations and phase-out thresholds that require careful planning.

For 2026, high-earning business owners should consider:

• Wage and basis limitations that affect how much QBI deduction you can actually claim

• Strategic income splitting with family members in lower tax brackets (where appropriate)

• Entity structure optimization to maximize the deduction while maintaining liability protection

If you own a construction business, contracting firm, or trade company generating substantial income, the permanent QBI deduction represents a long-term planning opportunity: not just a one-year tax break.

Estate Planning: The $15M/$30M Exemption Window

Perhaps the most significant change for high-net-worth families is the permanent federal estate and gift tax exemption of $15 million per individual ($30 million for married couples).

This permanence is historically rare. Previous exemption increases came with sunset provisions that created planning uncertainty. Now, you can make long-term decisions with confidence.

What does this mean for your estate plan?

AMT Alert: The Hidden Trap for High Earners

The Alternative Minimum Tax (AMT) exemption is now permanent at 2018 indexed levels: but don't celebrate too quickly. The phaseout thresholds reset to $500,000 for individuals and $1 million for joint filers in 2026, down significantly from 2025 levels.

Even more concerning: the exemption now phases out at 50% instead of 25%, meaning high earners hit AMT territory faster than before.

Strategic AMT planning includes:

• Timing investment sales to manage marginal tax bracket placement across years

• Coordinating income recognition with deduction timing

• Evaluating incentive stock option exercises carefully to avoid unexpected AMT liability

This is exactly where proactive tax planning separates itself from reactive tax preparation. By the time you're filing your return, it's too late to manage AMT exposure.

Tax Planning vs. Tax Preparation: Why the Distinction Matters

Here's the uncomfortable truth: most tax professionals focus on tax preparation: accurately reporting what already happened. That's important, but it's only half the equation.

Tax planning is about shaping what happens before year-end. It's about making strategic decisions throughout the year that minimize your lifetime tax burden: not just this year's bill.

For high-net-worth earners, effective tax planning includes:

• Multi-year income projections that account for bracket management and phaseout thresholds

• Retirement account sequencing that optimizes Roth conversions, RMD timing, and contribution strategies

• Investment tax coordination that aligns capital gains realization with your overall tax picture

• Business structure optimization that maximizes deductions while maintaining operational flexibility

If your current tax advisor only talks to you in March, you're missing 90% of the value.

Why Virtual Tax Services Work for Busy Business Owners

You're running a business, managing investments, and building wealth. You don't have time to sit in an accountant's office for hours.

That's why nationwide virtual tax services have become the preferred choice for high-net-worth clients. With secure document sharing, video consultations, and real-time collaboration tools, you get strategic tax guidance without the commute.

At Smith Tax & Wealth Group, we work with clients across the country: providing the same sophisticated planning strategies regardless of where you're located. Geography shouldn't limit your access to advanced tax expertise.

Your Next Move

If you're paying $50,000 or more in taxes annually, the OBBBA changes create both opportunities and urgency. The strategies that worked in 2024 may not be optimal for 2026 and beyond.

Here's what we recommend:

1. Schedule a comprehensive tax planning review before mid-year

2. Revisit your estate plan with the new exemption levels in mind

3. Evaluate your business structure for QBI optimization

4. Develop a multi-year income strategy that accounts for AMT and phaseout thresholds

The difference between high earners who minimize their tax burden and those who overpay? It's not luck: it's planning.

Ready to move beyond the basics? Contact Smith Tax & Wealth Group to schedule your strategic tax planning consultation. Let's make sure you're keeping more of what you've earned.