Are the TCJA tax rates really permanent now?

Yes. The One Big Beautiful Bill Act (July 2025) made the individual income-tax rates from the 2017 Tax Cuts and Jobs Act permanent. The scheduled 2026 sunset no longer applies — the 10/12/22/24/32/35/37% brackets continue, adjusted annually for inflation.

Does Florida have its own income tax brackets?

No. Florida imposes no personal income tax, so the federal brackets are the complete income-tax picture for Florida residents. That makes federal rate planning unusually high-leverage here.

My business is an S-corporation — which brackets apply?

Pass-through income from an S-corp flows to your individual return and is taxed at the individual brackets. Reasonable W-2 salary is also taxed at individual rates and subject to FICA. Planning the salary/distribution split is a core S-corp discipline.

How does the standard deduction change for 2026?

For 2026 the standard deduction rises to $16,600 for single filers and $33,200 for married filing jointly, up from $15,750 and $31,500 in 2025 (IRS Revenue Procedure 2025-32). Because Florida has no state income tax, this larger federal deduction is the single biggest automatic shelter most Florida filers get, and it raises the income level at which each higher bracket starts to bite.

BACK TO RESOURCES

Tax Planning & Strategy

2026 Tax Brackets: What Florida Business Owners Need to Know

The IRS released inflation-adjusted 2026 brackets. For Florida owners — who pay no state income tax but carry the full federal load — knowing where income falls inside the bracket structure is the difference between an April surprise and a plan executed all year.

SMAART Tax Team

January 15, 2026

6 min read

|Reviewed by Ray Dominguez, EA, USTCP

2026 Tax Brackets: What Florida Business Owners Need to Know

Continue Reading

The 2026 Personal Tax Planning Guide Is Here: Every New Number, One Free Download

Tax Planning & Strategy

2026 Tax Brackets: What Florida Business Owners Need to Know

Related Articles

Continue Reading

The 2026 Personal Tax Planning Guide Is Here: Every New Number, One Free Download

The QBI Deduction: How Pass-Through Businesses Get a 20% Tax Break

The Complete Guide to Quarterly Estimated Tax Payments