2026 phaseout thresholds for business owners are already set — even while most people are still focused on finishing the 2025 return. And a few of these numbers moved in ways that should change what you do next.
Right now, your 2025 tax return is probably top of mind.
But while you're focused on last year, the 2026 phaseout thresholds are already set.
And a few of them moved in ways that should change what you do next.
Here is what those numbers actually mean for a business owner at your level.
This is the one catching people off guard.
For 2025, the AMT exemption phaseout started at $626,350 for unmarried taxpayers and $1,252,700 for joint filers. For 2026, it starts at $500,000 for unmarried taxpayers and $1,000,000 for joint filers.
Yes, the AMT exemption amount itself increased slightly for 2026. But that is not the headline. The bigger issue is that the exemption starts phasing out sooner, and once you cross the line, it disappears faster.
Translation: more high-income taxpayers can get pulled back into AMT territory in 2026.
If you have large gains, equity compensation, concentrated income, or other AMT-sensitive items, this needs attention now — not when the return is already done.
This is where the details matter.
The SALT cap did not jump from $10,000 to $40,000 for 2026. That increase already happened for 2025. For 2026, the cap is $40,400.
But it is not a clean number for everyone. The higher deduction starts phasing down once modified AGI goes above $505,000 for joint filers, and it cannot be reduced below $10,000.
So yes, there is more room than before. But no, it is not a universal $40,400 deduction for every high-income household.
If you own a pass-through entity, this is also where a PTET election after OBBBA may still be worth running through the math.
For married couples filing jointly, the 2026 Roth IRA phaseout range is $242,000 to $252,000.
That is up from $236,000 to $246,000 in 2025.
If your income has grown, confirm whether you are still eligible to contribute directly.
Phasing out? A backdoor Roth may still work — but it needs to be planned correctly, especially if you have other pre-tax IRA balances. If that is on your radar, read Backdoor Roth IRA for Business Owners: High-Income Guide.
This one did not change, but it still matters.
If you actively participate in rental real estate, the special $25,000 loss allowance starts phasing out once modified AGI goes over $100,000 and is completely gone at $150,000.
At higher income levels, many business owners are already outside that window.
That means the question is usually not whether the rule exists. The question is whether your current tax strategy already assumes those losses will be suspended and carried forward instead of helping you now.
You do not need another reference PDF.
You need to look at how these thresholds interact with your actual income, deductions, entity structure, and timing decisions.
For most business owners, that means reviewing:
We do not want clients reacting in April 2027.
We want them adjusting now.
If you want the broader planning backdrop for this year, also read 2026 Tax Strategy for Business Owners.
Want a cleaner plan before year-end? Schedule a Free Tax Strategy Session.
Resources: IRS 2026 inflation adjustments, IRS 2026 IRA and Roth IRA limits, and IRS Publication 925 for passive activity and rental loss rules.
Note: This article is general educational information and not tax advice. Eligibility, income calculations, and planning outcomes depend on your full facts.