The 2026 tax year introduces several important updates that will affect how investors plan, save, and steward their resources. These changes were enacted through the One Big Beautiful Bill Act signed into law in July 2025. They create new opportunities to manage wealth wisely, reduce tax burdens, and plan intentionally for the future.
One of the most notable changes is the expansion of the standard deduction. Single filers will see their deduction rise to $16,100, while married couples filing jointly will be able to deduct $32,200. For many households, this means a lower taxable income and potentially more cash available for giving, saving, or reinvesting. For Christian families seeking simplicity, the higher standard deduction may also reduce the need to itemize, making tax planning more straightforward.
Another meaningful update is the expansion of the State and Local Tax (SALT) deduction cap to $40,000. This is especially beneficial for investors living in higher-tax states such as California, New York, and Texas. By allowing a greater portion of property and income taxes to be deducted, this change helps preserve capital that might otherwise be lost to taxes, freeing resources for long-term goals and kingdom-focused purposes.
For older investors, a new senior deduction provides additional relief. Individuals age 65 and older may deduct $6,000, and married couples can deduct up to $12,000 if both spouses qualify. This provision recognizes the financial realities many retirees face and supports faithful planning during the later seasons of life, when income may be fixed but generosity and legacy remain important.
Retirement savers will also benefit from higher contribution limits. The 401(k) contribution limit increases to $24,500. For people over 50, they can contribute an additional $8000. For people falling in the age 60-63 range, their catch-up is increased from $8000 to $11,250. Traditional and Roth IRA savers can contribute $7500 if under 50 and $8600 if over 50. These higher limits give Christian investors more flexibility to prepare for the future, reduce current taxes, and mitigate becoming a financial burden on others.
Finally, capital tax-loss harvesting remains a valuable strategy. With changes to capital gains tax brackets, thoughtfully offsetting gains with losses can help investors manage volatility while improving after-tax returns.
Taken together, these changes reinforce the importance of staying informed and proactive with your Strategic
Stewardship Financial Advisor. For Christian investors, wise tax planning is about stewarding God’s resources faithfully—so more can be directed toward providing for family, generosity, and eternal impact.