What Changed for Small Business Taxes in 2026?

The biggest 2026 changes for small business owners come from the One Big Beautiful Bill: 100% bonus depreciation and expanded Section 179 expensing are now permanent, the Qualified Business Income (QBI) deduction gained long-term clarity, 1099 reporting thresholds reverted, and several credits phased out after 2025.

The changes that matter most: After years of temporary and expiring provisions, 2026 brings a more stable framework — which makes proactive planning more valuable, not less. The headline items:

• 100% bonus depreciation is permanent again. Qualifying equipment placed in service in 2026 can be fully deducted in the year you put it to use.
•  Section 179 expensing limits expanded, giving more room to immediately deduct equipment and property purchases.
• QBI deduction clarity. The pass-through deduction is now on stable footing for long-term planning, though income thresholds and service-business limits still apply.
• 1099 thresholds reverted. The planned $600 Form 1099-K rule was reversed; the threshold returns to $20,000 and 200 transactions.
• Some credits ended after 2025. Several incentives are phasing out, so timing matters if you were counting on them.

The practical takeaway: 2026's stability rewards owners who plan around these rules early rather than discovering them at filing time.

Frequently Asked Questions

Are these 2026 tax changes permanent?

Several key provisions — including 100% bonus depreciation and expanded Section 179 — were made permanent by federal law passed in 2025, which is what makes 2026 a planning turning point.

Do these changes help or hurt small business owners?

Mostly they create opportunity. Permanent expensing and QBI clarity reward intentional planning, but a few expiring credits mean some owners need to adjust strategy.

When should I review how these affect my business?

Before year-end, not at tax time. Decisions about equipment purchases and income timing have to be made during the year to capture the benefit.

Talk to Campbell & Sherbondy: We help small business owners across Mercer County and the Pittsburgh area plan ahead instead of scrambling at filing time.