Navigating Tax Changes in 2025 and 2026

If one thing is certain about taxes, it’s that they always change. Some adjustments are modest, such as the standard deduction increases coming in 2025, notes J.L.Bainbridge Family Wealth Advisor and Vice President Ryan Thompson, CPA. But others could significantly reshape financial planning.

“There is a gigantic thing in 2025 that everyone should be watching,” says Thompson. That is whether the Tax Cut and Jobs Act (TCJA) of 2017 will sunset as scheduled or be extended. Either outcome will impact tax liabilities in 2026.

Originally enacted for 2018, the TCJA lowered corporate and individual tax rates, increased the standard deduction, limited certain deductions, and restructured international tax rules. “It also significantly raised the estate tax exemption,” Thompson adds.

“If the TCJA isn’t extended or made permanent for individual taxpayers, the result, though nuanced, could mean tax increases for almost everyone in 2026,” Thompson explains. “And we may not know the final decision until the very end of 2025. It could be down to the wire.”

How to Prepare Now

"Working with the right professionals in your corner, ones who prioritize your best interests, is critical," says Thompson. To fully understand how tax law changes will impact your financial strategies and how financial decisions affect your tax situation, work with both your financial advisor and tax preparer and ensure both have a broad understanding of your entire financial picture. Otherwise, they will offer advice based only on their own expertise. "A CPA will prioritize minimizing taxes, while a financial advisor will focus on maximizing performance within your risk tolerance," he explains.

For example, if you’re considering selling real estate, should you wait or act now? The answer isn’t always clear-cut. “It’s a complex decision,” Thompson notes, “Which is why I believe having a financial advisor who understands your tax situation is invaluable.”

At J.L. Bainbridge, our approach to financial planning is all-inclusive. “We call ourselves family wealth advisors,” says Thompson. “We chose those words carefully to reflect our commitment to helping clients navigate financial decisions as comprehensively as possible within the legal framework.”

With tax laws in flux and major changes on the horizon, proactive planning is essential. The right strategy today can help protect your wealth and minimize surprises in 2026 and beyond. J.L. Bainbridge’s team of family wealth advisors is ready to guide you through these uncertainties with knowledgeable and personalized advice. Now is the time to take control of your financial future. Visit jlbainbridge.com or call 941.365.3435 to schedule a consultation today.

Disclosure: The views and opinions expressed in this article are those of JL Bainbridge and are subject to change and reflect our judgement as of the publication date. The tax information in this article is for educational and informative purposes and should not be considered a recommendation. Investment advisory services are only available to those who become our clients through a written agreement. 

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