2026 Year-End Tax Planning: Steps to Take Now
September may not feel like year-end, but when it comes to tax planning, that is exactly the point.
Waiting until December can leave little time to evaluate your options, coordinate with your financial advisor and tax professional, and make changes before year-end deadlines. Starting now gives you a few months to look at the bigger picture and make thoughtful decisions without the pressure of a last-minute rush.
Whether you are approaching retirement, in your peak earning years, navigating a major life change, or running a business, here are several areas worth reviewing before 2026 comes to a close.
1. Start With Your 2026 Tax Picture
A good place to begin is with what has changed since you filed your last tax return.
Did your income increase or decrease? Did you sell investments, change jobs, retire, sell a business, receive an inheritance, or experience another significant life event?
Changes like these can affect your tax situation and may create new planning opportunities. This is a good time to review your estimated income, deductions, investment gains and losses, and tax withholding with your financial and tax professionals.
The goal is not simply to find ways to pay less tax next April. Good tax planning considers how today's decisions fit into your larger financial plan over time.
2. Review Your Retirement Contributions
With several months left in the year, there may still be time to adjust how much you are contributing to an employer-sponsored retirement plan.
For 2026, the IRS increased the employee contribution limit for 401(k), 403(b), and most 457 plans to $24,500. The IRA contribution limit also increased to $7,500, with additional catch-up contributions available for eligible individuals.
You do not necessarily need to contribute the maximum for this review to be worthwhile. Instead, ask whether your current savings rate still makes sense based on your income, cash flow, tax situation, and long-term goals.
For business owners and executives, this may also be an opportunity to review how your business retirement plan fits into both your personal and business planning.
Source: IRS: 2026 Retirement Plan Contribution Limits
3. Look for Tax-Loss Harvesting Opportunities
If you have investments in a taxable account, tax-loss harvesting may be worth considering before year-end.
Tax-loss harvesting generally involves selling an investment that has declined in value and using the realized loss to offset realized capital gains elsewhere in your portfolio. Depending on your circumstances, capital losses may also offset a limited amount of ordinary income, with unused losses potentially being carried forward.
There is an important catch. The IRS wash-sale rule can prevent you from claiming a loss if you purchase the same or a substantially identical investment within 30 days before or after the sale.
Most importantly, taxes should not be the only reason to sell an investment. Any change should still make sense within your broader investment strategy.
We explored this strategy further in a previous blog: Year-End Financial Planning Strategies for Busy Professional Women.
Source: IRS Publication 550: Investment Income and Expenses
4. Consider Whether a Roth Conversion Makes Sense
A Roth conversion is another strategy that may be worth discussing before December.
With a Roth conversion, money from a traditional IRA is moved into a Roth IRA. Generally, previously untaxed amounts converted are included in taxable income for the year of the conversion. Qualified Roth IRA distributions, however, can be tax-free.
A conversion may be worth exploring during a year when your taxable income is lower than usual, such as during certain periods in retirement. But it is not right for everyone. Increasing your taxable income today can affect other parts of your financial picture, which is why the amount and timing of a conversion deserve careful consideration.
This is an area where coordination between your financial advisor and tax professional can be especially valuable.
Source: IRS: Retirement Plans FAQs Regarding IRAs
5. Revisit Your Charitable Giving Strategy
If charitable giving is already part of your plans, year-end planning can be a good time to think about how you give, not just how much.
Depending on your circumstances, strategies might include donating appreciated investments, using a donor-advised fund to organize your giving, or making a qualified charitable distribution from an IRA if you are eligible.
You do not need to use a more complex strategy simply because one is available. The right approach depends on your age, income, assets, charitable goals, and overall financial plan.
For families who want charitable giving to become part of a broader legacy conversation, we explored the topic further in How to Discuss Wealth and Philanthropy With Your Family at Year-End.
6. Get Your Financial Advisor and Tax Professional on the Same Page
Tax planning does not happen in isolation.
A decision that looks appealing from a tax perspective can have implications for your investments, retirement income, charitable goals, estate plan, or cash flow. Likewise, financial decisions made throughout the year can affect what eventually appears on your tax return.
September gives you time to bring those pieces together.
Instead of waiting until tax documents arrive next year, consider having the conversation now. Your financial advisor can help identify planning opportunities within the context of your broader goals, while your CPA or tax professional can provide guidance on the tax implications specific to your situation.
You Still Have Time to Plan for 2026
Year-end tax planning does not need to mean rushing through a long checklist in December.
Starting in September gives you time to review where you stand, identify the strategies that are actually relevant to you, and coordinate with the professionals on your financial team before the year comes to a close.
Northstar helps clients consider taxes within the context of their broader financial lives. Whether you are preparing for retirement, growing your wealth, managing a business, or navigating a major life transition, proactive planning can help you make informed decisions today while keeping your long-term goals in focus.
You can also explore our financial planning resources for additional guidance based on where you are in your financial journey.
Ready to get ahead of your year-end planning? Schedule a conversation with Northstar Financial Planning.
Written by Julie Roux in collaboration with J & Mae Marketing
Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Investment advisory services offered through Northstar Financial Planning, LLC, a Registered Investment Advisor. Northstar Financial Planning, LLC will maintain all applicable registration and licenses as required by the various states in which Northstar Financial Planning, LLC conducts business. Registration as an investment advisor does not constitute an endorsement of the firm by securities regulators nor does it indicate that the advisor has attained a particular level of skill or ability. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable.
