Year-end tax planning checklist for 2026

Most year-end tax moves have to be done by December 31, 2026: selling investments to harvest losses or gains, Roth conversions, required minimum distributions, qualified charitable distributions, charitable gifts and 401(k) payroll contributions. A few can wait. IRA and HSA contributions for 2026 are due by April 15, 2027, and the last estimated tax payment for 2026 is due January 15, 2027. The single most useful step is a tax projection for the year before you act, because most of these moves only pay off once you know which bracket you’ll end in.

The 2026 numbers to have in front of you

By December 31, 2026

Investments

• Harvest losses in taxable accounts to offset gains, plus up to $3,000 of other income. The sale counts in 2026 if the trade date is December 31, even though it settles in January. Watch the 30-day wash sale window, including dividend reinvestment and IRA purchases. See tax-loss harvesting.
• Or harvest gains if your 2026 taxable income is below $98,900 joint ($49,450 single): long-term gains up to that line are taxed at 0%.
• Check fund distributions before buying mutual funds in a taxable account in December.

Retirement accounts

• Roth conversions must be completed by December 31, and since 2018 they can’t be reversed. Convert up to the top of a bracket you’re comfortable with. See the Roth conversion entry.
• Required minimum distributions are due by December 31 if you’re 73 or older. The first one can wait until April 1, 2027, but then you take two in 2027. Missing one costs 25% of the shortfall, cut to 10% if corrected within two years. See RMD.
• 401(k) contributions must come out of 2026 paychecks. If you’re short of $24,500, raise your rate for the last pay periods.

Giving

• Charitable gifts count in the year they’re made. For 2026, itemizers can only deduct gifts above 0.5% of adjusted gross income, and non-itemizers can deduct up to $1,000 of cash gifts ($2,000 joint). Bunching several years into a donor-advised fund now can clear the standard deduction. See charitable giving strategy.
• QCDs of up to $111,000 per person from age 70½ must be paid by December 31, and before you take the rest of your RMD.
• Gifts to family of up to $19,000 per recipient don’t use any of your lifetime exemption.
• Allow time. Stock gifts, conversions and QCDs often take days for custodians to process, so don’t leave them to the last week.

Benefits

• Use your FSA. If your plan allows a carryover, the most that rolls into 2027 is $680. Some plans offer a grace period instead. Check which.
• Choose next year’s health plan. From 2026, bronze and catastrophic plans count as HSA-eligible. See the HSA investing guide.

By January 15, 2027

The fourth estimated tax payment for 2026 is due. You avoid an underpayment penalty if withholding and estimated payments cover 90% of your 2026 tax, or 100% of your 2025 tax. That second figure becomes 110% if your 2025 adjusted gross income was over $150,000. Extra withholding from a December paycheck also counts toward these tests.

By April 15, 2027

• IRA contributions for 2026, including a nondeductible contribution for a backdoor Roth.
• HSA contributions for 2026.
• Withdraw any excess contribution, with its earnings, to avoid the 6% excise tax.

What’s new for 2026 that changes the math

• Senior deduction. People 65 and older can deduct an extra $6,000 each through 2028, reduced once modified adjusted gross income passes $75,000 ($150,000 joint). A Roth conversion or a large gain can shrink it.
• Charitable floor and non-itemizer deduction, described above.
• Top-bracket cap. If your taxable income is above $768,700 joint ($640,600 single), itemized deductions are trimmed so each dollar is worth about 35 cents.
• Medicare premiums. They’re set from income two years earlier, so a 2026 conversion or sale can raise premiums in 2028. See financial advisor for retirement.

Common mistakes

1. Acting without a projection. A conversion or gain that looks small can push you over a bracket, the senior deduction phase-out or a Medicare threshold.
2. Taking the first RMD on April 1 without planning for the second. Two RMDs in one year can lift your bracket.
3. Taking an RMD in cash, then trying to give it via QCD.
4. Triggering a wash sale in December through a spouse’s account or automatic reinvestment.
5. Forgetting state taxes and deadlines, which don’t always match federal ones, including state deductions for 529 contributions.

Questions to ask an advisor

1. What’s my projected 2026 taxable income, and how much room is left in my bracket?
2. How much should I convert to Roth this year, if anything?
3. Should I harvest losses, harvest gains, or do neither?
4. Should I give stock, bunch into a donor-advised fund, or use a QCD?
5. Am I on track for the estimated tax safe harbor?
6. Will you coordinate with my tax preparer, and is this review included in your fee?

When a fee-only advisor is worth it, and what it costs

If your income is wages and your accounts are simple, this checklist and your payroll portal may be enough. A paid review pays for itself when one decision is large: a Roth conversion, a big gain from selling stock or a business, a first RMD, an inheritance, or a gift strategy. It also pays when the moves interact, as they do for most retirees and high earners.

Among fee-only firms that publish prices, hourly advice has a median of $300 an hour (middle half $250 to $350), a one-time plan is $2,000, and ongoing planning $4,500 a year. If you already pay for ongoing planning, a year-end tax review should be part of it; ask for the projection in writing. Planners and tax preparers do different jobs, so see CFP vs CFA vs CPA and hourly planner costs.

To find planners who do this work, browse advisors for high earners, advisors for retirees or flat-fee advisors, the tax planning specialty, or the high earners and retirees pages in the public graph.