2025–2026 IRS Updates: What Individuals and Business Owners in Georgia Should Prepare For
As we approach the end of 2025, it’s a smart time for individuals and business owners — including those in Georgia — to review the latest Internal Revenue Service (IRS) updates. Inflation adjustments, contribution-limit increases, and changes to standard deductions and exemptions can affect your tax planning, retirement savings, business deductions, and estate planning strategy. Below, we walk through the key changes for 2025 and 2026 and how you can proactively prepare.
What’s New: 2025 Inflation Adjustments & Tax-Code Updates
• Higher Standard Deductions & Adjusted Tax Brackets
For the 2025 tax year (returns filed in early 2026), standard deduction amounts have increased: for example, single filers now get a standard deduction of $15,750, married couples filing jointly $31,500, and heads of household $23,625. Journal of Accountancy+2Tax Specialty+2
Tax brackets have also been bumped up slightly to account for inflation, meaning many taxpayers may stay in lower effective tax brackets even if their income grows modestly. Axios+2GovDelivery+2
• Increased Retirement Account Contribution Limits
For 2025, the limit for contributions to employer-sponsored retirement plans (such as 401(k), 403(b), or 457 plans) rises to $23,500 (up from $23,000 in 2024). Colorado PERA+1
At the same time, contribution limits for IRAs remain at $7,000 (or $8,000 for those age 50 or older) for 2025. IRS+1
• Inflation-Adjusted 2026 Provisions
The IRS recently announced inflation adjustments that will apply to the 2026 tax year (tax returns filed in 2027). Among the adjustments: the standard deduction will increase again — for example, to $16,100 for single filers and $32,200 for married couples filing jointly. Journal of Accountancy+220somethingfinance.com+2
Other thresholds — including income tax brackets, alternative minimum tax (AMT) exemption amounts, and contribution limits — are also being adjusted upward to reflect cost-of-living changes. Journal of Accountancy+2Colorado PERA+2
What These Changes Mean for Georgia Individuals & Business Owners
For Individuals and Families
More of your income may avoid higher tax rates — thanks to higher standard deduction and adjusted tax brackets.
Greater opportunity to increase retirement savings tax-advantaged — with the higher 401(k)/403(b) contribution cap, individuals can defer more income into retirement accounts, reducing current taxable income.
Seniors and retirees might benefit more — increased deductions and phased-in changes could help older taxpayers, especially those relying on fixed income or retirement benefits.
For Business Owners and Self-Employed or Small-Business Operators
Retirement plan contributions for owner-employees: If you use retirement vehicles such as SEP-IRAs or 401(k)-type plans, adjusting contribution levels for inflation can help maximize tax-advantaged savings.
Tax planning and cash-flow management: Understanding inflation-adjusted thresholds, deductions, and limits now helps you project tax liability, year-end tax planning, and estimated payments — especially relevant for Georgia small business owners with variable incomes.
Estate, business transition, and long-term planning: Given that many threshold and exemption amounts changed (or will change), estate and business succession strategies may need reevaluation — especially for business-owning families, retirees, or multi-generational wealth transfer plans.
What You Should Do Now to Prepare (Year-End Action Steps)
Re-evaluate your withholding or quarterly estimated tax payments — Inflation-adjusted tax brackets and deductions may shift your taxable income and tax liability.
Max out retirement account contributions if possible — Now’s a good time to contribute more to your 401(k), IRA, or business-owner retirement plan under the new limits.
Review your long-term estate and business-planning strategies — Changes could affect when and how you want to transfer business interests or assets, especially in multi-generational contexts.
Coordinate with your CPA or tax advisor (and family where relevant) — Make sure your 2025 and 2026 tax planning aligns with your business and personal goals.
Track major changes in income, assets, or life events — These can impact whether standard deduction or itemizing makes sense, what retirement or business strategies to prioritize, and how estate planning or business succession should be structured.
Need Help Navigating These Updates? We’re Here for You
Tax law can be complex — and living in Georgia or owning a business adds layers of state-specific concerns around income, business structure, and estate planning. At Atkins Law Offices, we help individuals, families, and business owners stay ahead: making sure you’re positioned to maximize benefits under the new IRS rules, minimize liability, and incorporate changes into your long-term plan.
Book a consultation with us today — and ensure your 2025–2026 tax strategy is optimized, compliant, and aligned with your financial goals.
