2026 Tax Law Changes Long Island Businesses Should Know

Every year the tax code shifts, and 2026 is no exception. Some changes arrive automatically through annual inflation adjustments, while others reflect scheduled phase-downs and policy updates that have been on the calendar for some time. For business owners and individuals across Long Island, Nassau County, and the tri-state area, the smart move is not to memorize numbers but to understand the categories of change that matter and plan around them.

Below we walk through the areas most likely to affect your 2026 return and the planning moves that go with each. One important note up front: tax figures are adjusted frequently and the specifics can change during the year. Treat the dollar amounts you read anywhere, including here, as illustrative, and confirm the current-year numbers with your CPA before you act.

Inflation-Adjusted Brackets and the Standard Deduction

Each year the IRS adjusts the income thresholds for the tax brackets and the standard deduction to account for inflation. When those thresholds rise, more of your income can fall into lower-rate bands, and a larger standard deduction means more income is shielded from tax before you ever itemize.

The planning move is to revisit your withholding and estimated payments early in the year. If the brackets widened and your income is roughly flat, you may be over-withholding. If your income jumped, you may need to set more aside. A quick mid-year projection prevents an unpleasant surprise next April.

Retirement Contribution Limits

Contribution limits for 401(k) plans, IRAs, SEP-IRAs, SIMPLE plans, and similar vehicles are also adjusted periodically, and catch-up contributions for those age 50 and over have their own rules that continue to evolve. Higher limits are one of the cleanest ways to lower taxable income while building long-term wealth.

The planning move is to max out, or at least increase, your contributions to the highest level you can comfortably afford, and to coordinate the timing. Business owners in particular should look at whether a SEP-IRA, solo 401(k), or defined-benefit plan captures more deduction than they are currently using.

Section 179 and Bonus Depreciation Phase-Down

For businesses that buy equipment, vehicles, or other qualifying property, two provisions matter most: Section 179 expensing and bonus depreciation. Section 179 lets you deduct the cost of qualifying assets up to an annual cap, and bonus depreciation has historically allowed an additional immediate write-off. The key 2026 theme is that bonus depreciation has been on a scheduled phase-down, so the percentage you can write off immediately is lower than it was in peak years.

The planning move is timing. If you are planning a significant equipment purchase, the year you place the asset in service, and the order in which you apply Section 179 versus bonus depreciation, can change your deduction meaningfully. A CPA can model whether to accelerate a purchase or spread it across tax years.

1099-K Reporting Thresholds

If you accept payments through platforms like PayPal, Venmo for business, Stripe, or marketplace sites, you may receive a Form 1099-K. The reporting threshold that triggers one of these forms has been the subject of repeated changes and transition relief, with the bar moving over several filing seasons. The result is that more small sellers and side-business owners are receiving these forms than in the past.

The planning move is recordkeeping. A 1099-K reports gross payments, not profit, and it can include personal reimbursements that are not taxable income. Keep clean records that separate business revenue from personal transfers so your return reflects what you actually owe, not the gross figure on the form.

• Separate business and personal accounts wherever possible
• Label peer-to-peer transfers clearly so reimbursements are not mistaken for income
• Reconcile platform 1099-K totals against your own bookkeeping before filing
• Keep documentation for any amount you exclude as non-taxable

Estate and Gift Tax Exemptions

The federal estate and gift tax exemption, along with the annual gift exclusion, is adjusted over time and is also subject to scheduled changes in the law. For families with appreciating assets, real estate, or a closely held business, the exemption level affects how much can pass to the next generation tax-free and how aggressively you should be gifting now.

The planning move is to revisit your estate plan whenever the exemption is expected to change. Strategies such as annual gifting, trusts, and valuation planning are time-sensitive, and waiting until an exemption drops can cost a family far more than acting early.

New York State Specifics

New York does not simply mirror the federal rules. The state sets its own brackets, its own treatment of certain deductions, and its own rules for pass-through entities, including the pass-through entity tax (PTET) that many owners use to work around the federal cap on state and local tax deductions. New York City layers on additional business taxes that interact with your entity structure. Residency and domicile rules also continue to draw audit attention, particularly for those who split time with Florida.

The planning move is to never assume a federal change flows through to your New York return automatically. Whether the PTET election still makes sense for you, how a depreciation choice lands at the state level, and how residency is documented all require a New York lens. This is exactly where working with a Garden City CPA who knows New York law, not just the federal code, protects you.

Putting It Together

The throughline across all of these categories is the same. The numbers change, sometimes more than once in a year, but the planning discipline does not. Project your income early, fund retirement to the limit you can afford, time your equipment purchases deliberately, keep clean records for any 1099-K activity, revisit your estate plan when exemptions move, and treat your New York return as its own analysis. Do those six things and you will capture most of the benefit available in any given year.

At JRH & Associates in Garden City, we help business owners and families across Long Island, Manhattan, New Jersey, and Florida turn each year's changes into a concrete plan. Explore our full range of accounting and tax services, or contact us to confirm the current-year figures that apply to your situation.

This article is for informational purposes only and does not constitute tax, legal, or accounting advice. Tax figures change frequently and specific amounts may differ for the current year. Every situation is different. Confirm the current-year figures and your own circumstances with a qualified CPA before acting.