2026 Tax Changes: What Fort Lauderdale and South Florida High Earners Need to Know

Major TCJA provisions are expiring. Here's what changes for Florida business owners and high earners in 2026 — and the moves to make now.

The Tax Cuts and Jobs Act (TCJA) of 2017 included several provisions with built-in expiration dates. Many expire after December 31, 2025 — and while Florida's zero state income tax provides a cushion, 2026 still brings significant federal changes for South Florida's high earners.

What's Changing for Florida Taxpayers

1. Top Federal Rate: 37% → 39.6%

Florida business owners who relocated here to escape state income tax will still feel this. For a Fort Lauderdale professional earning $800K, the 2.6% increase on income above the threshold means $5,000-$10,000 more in federal tax.

2. QBI Deduction Expires

This is the big one for South Florida business owners. The Section 199A deduction lets pass-through entities (S-Corps, LLCs, partnerships) deduct up to 20% of qualified business income. On $400K of QBI, that's an $80,000 deduction disappearing — roughly $30,000 in additional tax.

For Fort Lauderdale's large population of consultants, agency owners, and professional service firms, this is a direct hit.

3. SALT Cap May Lift

The $10,000 cap on state and local tax deductions could expire. This actually matters less for Florida residents (no state income tax to deduct), but it matters for your property taxes. South Florida property values — and property tax bills — are among the highest in the state. Uncapping SALT could let you deduct your full property tax again.

4. Standard Deduction Drops

The nearly-doubled standard deduction reverts to pre-TCJA levels. For South Florida homeowners with large mortgages and property taxes, itemizing may become beneficial again.

3 Moves for South Florida High Earners Right Now

Move 1: Roth Conversions Before Rates Rise

Convert traditional IRA/401(k) money to Roth at today's 37% rate. Once it jumps to 39.6%, every dollar you convert costs more. Fort Lauderdale retirees and pre-retirees should be especially aggressive here.

Move 2: Max QBI Deduction While It Exists

If you're a South Florida business owner with pass-through income, make sure your entity structure and W-2 wages are optimized to capture the full 20% QBI deduction this year. It may not exist next year.

Move 3: Accelerate Income Into 2025

If you have flexibility on when you recognize income — especially consulting fees, bonuses, or property sales — consider pulling income forward while rates are lower.

These changes create both risks and opportunities. Run your free tax assessment to see how the 2026 changes affect your specific South Florida situation.