Take advantage of historic tax cuts for small businesses in 2026.
Working Families Tax Cuts were signed into law by President Donald J. Trump on July 4, 2025 and include numerous provisions that small businesses may take advantage of during the 2026 tax season.
According to the U.S. Department of Treasury, the tax cuts have already reduced taxes for over 12 million small business owners by roughly $7,000. The permanent extension of the 20 percent Small Business Deduction alone is delivering about $4,600 in average tax relief to 8 million entrepreneurs around the country.
Read more about the One, Big Beautiful Bill provisions.
Key benefits for small businesses
- Prevents the largest tax hike in history, making the 2017 Trump Tax Cuts permanent and increasing the standard deduction for every American family - saving taxpayers from a $4 trillion tax hike.
- Makes the small business tax deduction permanent, preserving the 199A 20% small business deduction, which will generate $750 billion in economic growth and create over 1 million new Main Street jobs. Without Working Families Tax Cuts, 26 million small businesses would have seen their top tax rate double to 43%.
- Supports the return of Made in America by allowing 100 percent expensing for new factories, factory improvements, equipment, and research and development.
- Ends the war on the gig economy by removing the requirement that Venmo, PayPal, and other gig transactions over $600 be reported to the IRS.
- Protects family farmers by preventing the death tax from hitting 2 million family-owned farms who would otherwise see their exemptions cut in half.
- Cuts taxes on seniors, tips, and overtime, saving tipped and overtime workers up to $1,750 per year.
- Increases the child tax credit to $2,200 per family.