David talks about what tax brackets will look like starting from January 1st 2026. 

One of the things that will change in 2026 are the actual tax rates – with an increased percentage of tax attached to a given range of income.

In 2026, tax rates will return to what they were in 2017.

David points out that some people online mistakenly believe that, in 2026, things will simply revert back to the same tax rates of 2017, with the same income ranges attached to those rates.

An important thing to note is the federal government will index the 2017 tax brackets for inflation, treating your 2026 tax bracket as if the tax cut had never happened.

David shares a fairly accurate way of determining what your tax brackets are likely to be and what it will end up costing you. 

Those in the 24% tax bracket or lower will see a slight uptick in their taxes in 2026 – not because of tax bracket compression but due to their tax rate increasing.

David sees doing a Roth conversion as a huge planning opportunity to protect yourself.

The idea is to take advantage of the Trump tax cuts while they’re still around so that, by the time they expire, you’ll have safely transferred a portion of your retirement savings to Roth IRAs.

David believes that, even though tax rates will go up in 2026, they’ll increase even further in 2030 and 2031 to pay for interest on the national debt in Social Security, Medicare, and Medicaid.

 

 

Mentioned in this episode:

David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code

DavidMcKnight.com

DavidMcKnightBooks.com

PowerOfZero.com (free 3-part video series)

@mcknightandco on Twitter 

@davidcmcknight on Instagram

David McKnight on YouTube

Get David's Tax-free Tool Kit at taxfreetoolkit.com