May 5, 2026
Discover the best tax savings strategies for 2025: SALT cap bypass, retirement hacks, real estate tips & Texas relief. Maximize deduction...
The best tax savings strategies for 2026 have changed because of a new law called the OBBBA. If you want to save money, here are the top things to know right now:
| Strategy | Key Benefit |
|---|---|
| Use the SALT tax break (up to $40,000) | Save more if you pay high state taxes |
| Put money in 401(k), IRA, and HSA | Lower the income you are taxed on |
| Sell losing stocks to offset wins | Pay less on your investment profits |
| Use the new senior tax break ($6,000/$12,000) | A special discount for people 65 and older |
| Give to charity using a DAF | Group your gifts to get a bigger tax break |
| Mega backdoor Roth | Save a lot of money that grows tax-free |
| Cost segregation for owners | Get tax breaks on buildings much faster |
| Fight your Texas property tax bill | Ask the county to lower your home's value |
The tax rules reward people who plan ahead. Most people wait until April to think about taxes. By then, it is often too late to save.
The new law changed things for 2026. You can now take a bigger break for state taxes. There are also new ways for seniors and workers to save. If you miss these, you could lose thousands of dollars.
I am Michael J. MacFarlane. I have helped people in Houston buy and sell homes for over 30 years. I know how to help you use the best tax savings strategies for your property and money. I will show you how to keep more of what you earn.
Best tax savings strategies terms to know:
When we talk about the best tax savings strategies, we usually start with "deductions." A deduction is like a discount. It lowers the amount of money the government can tax. For 2026, there is big news about the State and Local Tax (SALT) discount.
For a long time, you could only take a $10,000 discount for state and local taxes. Now, that limit is $40,000. This is great for homeowners in Harris County or Montgomery County who pay high property taxes. But if you make more than $500,000 a year, this extra discount starts to go away.
You have to choose between two options: take the "standard" discount or list your costs one by one. For 2026, the standard discount is:
If your costs—like home loan interest and charity gifts—add up to more than those amounts, you should list them. If not, take the standard discount. At MacFarlane Realty Group, we help clients look at their money through our tax services to make sure they save the most.
| 2026 Discount Type | Single Person | Married Couple |
|---|---|---|
| Standard Discount | $16,100 | $32,200 |
| SALT Limit | $40,000 | $40,000 |
| Senior Discount | $6,000 | $12,000 |
There is a new "Senior Discount" in the law. If you are 65 or older, you get an extra $6,000 off ($12,000 for couples). You get this even if you don't list your costs. It starts to go away if you make more than $75,000 (single) or $150,000 (married).
For families, there are Trump Accounts. These are savings accounts for kids under 18. You can put in up to $5,000 a year. The government even gives you $1,000 to start the account. This is one of the best tax savings strategies to help your kids grow money for the future.
If you own a business, you might be able to ignore the $40,000 SALT limit. Some states let businesses pay the tax instead of the owner. This lets you take a full discount on your federal taxes. If you haven't asked your tax person about this yet, you should. Also, check your federal withholding to make sure you aren't paying too much during the year.
One of the best tax savings strategies is "paying yourself first." Every dollar you put into a work savings account is a dollar the government does not tax today.
For 2026, you can save more:
Don't forget the Health Savings Account (HSA). This account is a "triple win." The money you put in lowers your taxes, it grows without being taxed, and you don't pay taxes when you spend it on doctor bills. For 2026, you can put in $4,400 for yourself or $8,750 for a family.
For people who make a lot of money, the Mega Backdoor Roth is a great tool. If your work plan allows it, you can save up to $70,000 total. This helps you keep a lot of money safe from future taxes.
You should also think about where you keep your investments. Put things that pay a lot of interest into your retirement accounts. Keep things like stocks in your regular accounts to pay lower tax rates later.
If you give to charity, try "bunching." Instead of giving a little every year, give a lot in one year. This helps you get a bigger tax break.
Using a Donor-Advised Fund (DAF) makes this easy. You put money in now to get the tax break, then choose which charities to help later. To see how much you could save, use the Fidelity Charitable tax savings calculator.
Another tip: Give stocks instead of cash. If you bought a stock for $1,000 and it is now worth $5,000, you can give the stock to charity. You get a $5,000 tax break and never have to pay taxes on the $4,000 profit.
In Houston, owning property is a great way to save on taxes. But your other investments matter too.
Tax-loss harvesting is when you sell investments that lost money to cancel out the ones that made money. If you lose more than you win, you can use up to $3,000 of those losses to lower your tax bill. Just don't buy the same thing again right away, or the rule won't work.
If you want to grow your money for a long time, commercial real estate can help you wait to pay taxes or even avoid them.
If you own a rental house or a business building, a cost segregation study is one of the best tax savings strategies.
Usually, it takes 27.5 years to get all your tax breaks on a house. This study lets you get those breaks much faster on things like floors, lights, and bushes. This creates big "paper losses" that can wipe out the taxes you owe on your rent money. It keeps more cash in your pocket.
Watch your investments all year. Don't sell just to save on taxes, but be smart about it. If you hold an investment for more than a year, you pay a much lower tax rate when you sell it. Always try to wait at least one year and one day before selling.
Texas does not have a state income tax, but our property taxes are high. The state has passed new laws to help lower these bills.
One big help is the Homestead Exemption. For most homes, the school tax discount is now $100,000. Also, the value of your home for taxes cannot go up more than 10% each year. For business owners, there is a bigger discount on the equipment they own.
If you think your home's value is too high, you should do a residential property tax protest. We often see the county guess a value that is too high.
Every spring, you will get a paper showing your home's value. If it is higher than what you could sell the house for, you should fight it.
The best way to do this is to look at other homes nearby that sold for less. You can also show pictures of things that need to be fixed, like a broken roof. If you own a business, we can help with commercial property tax protests too.
Texas is very kind to seniors and veterans. If you are 65 or older, you can "freeze" your school taxes. This means they will never go up as long as you live there.
Veterans with a 100% disability may not have to pay any property taxes at all on their home. At MacFarlane Realty Group, we love helping our heroes with residential real estate and the benefits they earned.
It depends on your costs. If your home loan interest, charity gifts, and state taxes add up to more than $32,200 (for a couple), then listing them will save you more money. Because the state tax limit is now $40,000, more people will want to list their costs.
The limit is $40,000, but it goes away if you make a lot of money. If you make between $500,000 and $600,000, the extra discount gets smaller. If you make over $600,000, you only get a $10,000 discount. This is why business owners use special rules to save more.
The new law has special breaks for people who get tips or work extra hours (overtime). These workers can take some of that money off their tax bill. This is meant to help people who are working hard to pay their bills.
Finding the best tax savings strategies does not have to be hard. Whether you are saving for retirement, giving to charity, or fighting your property taxes, the secret is to start early.
At MacFarlane Realty Group, we have spent over 25 years helping our neighbors in Houston, Katy, and The Woodlands. We provide great service whether you are buying your first home or a big business building.
Tax laws change, but having a friend to help you is always important. If you are ready to save more of your hard-earned money, start your tax-smart move today. We handle the hard parts so you can focus on your life.
We’ve built our firm on relationships, not online leads. Most of our clients come through referrals, and many come back for future moves—sometimes across multiple generations. That kind of trust comes from showing up, doing the work, and never cutting corners.
Excellent guidance on our commercial purchase. The team was knowledgeable, responsive, and made every step straightforward.
Sam Scott, Houston
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