Most people think about taxes twice a year: in April when they file, and in December when it is too late to do much about it. But mid-year tax planning in 2026 is actually the sweet spot. You have real income data to work with, time to act, and enough runway to make decisions that matter. Here is what to keep on your radar between now and year-end.

What Changed for Taxpayers in 2026?

The passage of the One Big Beautiful Bill Act (OBBBA) in July 2025 brought meaningful changes to the tax landscape. Most notably, it made the individual tax rates from the Tax Cuts and Jobs Act permanent. The seven federal brackets, ranging from 10% to 37%, are now locked in and indexed for inflation rather than set to expire.

For many households, this brings a degree of predictability that has been missing for years. It also changes some of the urgency that had been driving certain planning decisions, particularly around Roth conversions, where the original case was largely built around beating a rate increase that is no longer coming.

That does not mean planning opportunities have disappeared. It means they are different, and in some cases more personal.

Are Roth Conversions Still Worth Doing in 2026?

Yes, but the rationale has shifted. With TCJA rates now permanent, the case for a Roth conversion is no longer about beating a deadline. It is about your own tax trajectory.

A conversion still makes strong sense if you expect your income to rise significantly in retirement, particularly once required minimum distributions kick in at age 73. Converting pre-tax retirement dollars now, at today’s bracket, can reduce the tax burden on those future distributions and potentially help you avoid Medicare IRMAA surcharges, which are triggered by higher income and can add hundreds of dollars per month in premiums.

The OBBBA also introduced a temporary senior deduction of $6,000 per qualifying individual age 65 or older through 2028, subject to income limits. For those approaching or already in that window, this creates additional room to convert at a lower effective rate before it closes.

The key is sizing the conversion carefully. Converting too much in a single year can push income into a higher bracket, trigger phaseouts on other deductions, or affect SALT benefits. A thoughtful, multi-year approach calibrated to your bracket is where most of the value lives.

What Other Mid-Year Tax Planning Strategies Should You Be Thinking About?

Tax bracket management. Now that you have several months of actual income data, mid-year is a good time to project your full-year taxable income and look for opportunities to stay within a favorable bracket. That might mean accelerating deductions, timing a business distribution differently, or adjusting retirement contributions.

Tax-loss harvesting. If you hold taxable investments that are sitting at a loss, harvesting those losses before year-end can offset capital gains elsewhere in your portfolio. It is worth a mid-year review rather than waiting until December when options narrow.

Catch-up contributions. High earners age 50 and older should note that as of January 1, 2026, catch-up contributions for employees earning over $150,000 in FICA wages from their current employer in the prior year must go into a Roth account rather than a pre-tax account. This is a meaningful change for anyone in that category. If it applies to you and you have not adjusted your contribution elections, now is the time.

Charitable giving strategy. Beginning in 2026, the OBBBA introduced a 0.5% of AGI floor on charitable deductions for those who itemize. For higher-income donors, this is worth factoring into your giving plan. Strategies like donor-advised funds or qualified charitable distributions from an IRA can still deliver meaningful tax benefits when structured correctly.

When Is the Right Time to Review Your Tax Plan?

At least twice a year: once mid-year when you can still act, and again before December 31. Waiting until tax season limits your options considerably.

If your income, investments, or life circumstances changed meaningfully this year, a mid-year check-in with your financial advisor and tax professional is especially valuable. The households that tend to come out ahead are the ones treating tax strategy as an ongoing process rather than a once-a-year exercise.

A trusted financial advisor can help you look across your full picture, coordinate with your CPA, and identify opportunities for tax-efficient investing that a tax return alone will not surface. The decisions you make between now and December 31 can have a real impact on what you owe next April. Reach out to ProVise Management Group before the window closes.