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Tax Trends 2026: What Corporate Tax Departments Should Watch
Today’s already complex tax environment has just become more complicated – and even more high stakes – as a result of multiple factors.
Just consider:
- The sweeping changes now in effect due to the passage of 2025’s One Big Beautiful Bill Act (OBBBA, sometimes called the “Trump tax law”) – and the compliance challenges that follow
- Organization for Economic Co-operation and Development (OECD) negotiators’ pledge to exempt US companies from key provisions of the global minimum tax A worsening shortage of tax talent as the profession’s demands increase
- The evolving role of tax professionals into strategic business advisors
- And leading tax teams’ swift adoption of and investment in automation and AI tools to transform workflows while managing their costs, risk, and planning
As tax departments expand their areas of influence and navigate this dynamic, sometimes turbulent environment, they must also stay on top of emerging trends – and updated tax law – to stay in compliance.
Read on to learn about key tax technology trends to watch for in 2026 – and how Bloomberg Tax tools can help you manage your workflows and provide strategic business advice during these unprecedented times.
[Download our 2026 tax outlook report for more details on today’s regulatory changes.]
Why 2026 is a pivotal year for tax
In 2026, tax professionals will face a whirlwind in myriad areas – all while policy guidance from the IRS may not be as clear as it has been in past years. Despite this uncertainty around policy shifts, tax professionals must manage change while staying in compliance.
[Want to stay on top of the latest tax news? Download our 2026 tax policy outlook report for forward-looking insights on regulatory and policy shifts.]
Tax brackets changes and inflation adjustments
The new year brings a variety of changes for tax filers, including new inflation-adjusted tax brackets and inflation-adjusted standard deductions.
For tax year 2026, the OBBBA made permanent the marginal rates that were in effect during the previous tax year – 10%, 12%, 22%, 24%, 32%, 35%, and 37% – but income ranges will increase.
For instance, for tax year 2026, single filers making more than $640,601 will enter the highest bracket, an increase from $626,351, while married couples filing jointly will enter that bracket at $768,701, an increase from $751,601.
Also for tax year 2026, the standard deduction increases to $32,200 for married couples filing jointly, $16,100 for single taxpayers and married individuals filing separately, and $24,150 for heads of households. (In addition, for tax year 2025, the OBBBA raises the standard deduction to $31,500 for married couples filing jointly, $15,750 for single taxpayers and married individuals filing separately, and $23,625 for heads of households.)
[See the latest information on tax rates, filing deadlines, rate schedules for estates and trusts, and more, in our quick tax reference guide.]
Legislative and regulatory shifts impacting corporate tax strategy
New domestic and international tax laws also are reshaping how companies model, structure, and plan for tax in 2026.
Consider the following updates set to affect tax strategy in 2026.
Changes to FDII and GILTI
Beginning in 2026, FDII is known as foreign-derived deduction-eligible income (FDDEI), and the GILTI regime is net CFC tested income, or NCTI.
What do these changes mean for multinational companies? The new rules for FDDEI preserve the basic intent of FDII but remove the element involving tangible assets, while also changing the FDDEI-related Section 250 deduction percentage to 33.34% (changing the effective tax rate on qualifying FDDEI from 13.125% to a rounded 14%).
In addition, beginning in 2026, the new rules remove the GILTI deemed tangible income return element, while also changing the GILTI-related Section 250 deduction percentage to 40%.
CAMT guidance
Filers also can benefit from optional adjustments, methods, and elections to reduce corporate alternative minimum tax (CAMT) liabilities since the IRS issued notices that provide related, interim guidance. The new guidance also addresses various “special situations” raised by taxpayers, and some filers may need to reevaluate their CAMT positions to determine if the new guidance will result in a more favorable outcome.
100% bonus depreciation
One big shift due to the OBBBA is the permanent extension of the 100% bonus depreciation rate for qualified business property with a 20-year life or less. The OBBBA also added a new provision allowing the enhanced deduction for qualified production property. Considering these changes, tax professionals should revisit assumptions, model new strategies, and streamline execution.
OECD and Pillar Two
In January, the Trump administration secured a commitment from international negotiators at the OECD to effectively exempt U.S.-headquartered companies from key provisions of the global minimum tax (also known as Pillar 2).
The OECD released a document detailing the terms of a so-called “side-by-side” system, which includes a series of simplification measures to reduce compliance burdens on U.S. multinational companies.
The agreement includes safe harbors, such as the ultimate parent entity safe harbor and the side-by-side safe harbor, which can apply to multinationals based in specific countries recognized by the OECD’s Inclusive Framework.
For more coverage of tax policy changes, litigation, and state-level issues, download our 2026 tax policy outlook report.
Tax technology trends: adoption and digital tax transformation
The complexity of modern tax law, combined with the fast pace of change, has created a demanding environment in which attention to detail and the right tools are crucial for individual professionals, busy tax and accounting departments, and the governmental agencies they look to for guidance.
As tax teams continue to deal with talent shortages in 2026, time-saving, workflow-optimizing tax technology will become more widely embraced as a necessary tool for efficient planning, strategy, and compliance.
These are three of the key areas of investment in tax technology:
- Automation
In 2026, more tax functions will accelerate automation to help tax professionals handle rising complexity and work efficiently – even as they also must manage the fallout created by talent shortages in the field. Teams that choose to invest in automation will therefore be better positioned to build long-term agility and control. - Centralized data platforms
These will help improve audit-readiness and cross-border coordination, because centralizing data, streamlining analysis, and automating documentation reduces manual workload, strengthens preparedness, and ensures compliance processes are in line with changing demands. - AI for tax research
As the stakes get even higher for tax professionals who rely on outdated or inaccurate research, AI is gaining traction for tax research. The right platform can reduce complexity, save time, enhance accuracy, and minimize risks.
For example, tools such as Bloomberg Tax Answers use cutting-edge technology to pull the most relevant information instantly from content including Tax Management Portfolios, the IRC, federal and state tax statutes and regulations, international tax navigators, and Bloomberg Tax news.
So, how can technology help with the complications brought forth by the evolving tax landscape in 2026 and beyond? The fully integrated suite of solutions offered by Bloomberg Tax solves challenges on multiple fronts.
Bloomberg Tax Workpapers, for example, helps busy teams easily implement changes by automatically applying the latest rates to calculations and providing pre-built templates. It also saves valuable time by automating data input and manipulation.
Meanwhile, Bloomberg Tax Provision simplifies time-intensive provision calculations while maintaining adherence to evolving standards like ASU 2023-09.
Bloomberg Tax Fixed Assets helps tax professionals adapt quickly to revised rules on bonus depreciation so that they can calculate impacts accurately and make informed decisions that align with compliance standards.
And Bloomberg Tax Research gives teams up-to-the-minute information on OBBBA provisions and their implications, combining practical guidance, AI-powered tools, and direct links to primary source materials to help tax practitioners understand changes and stay compliant.
Workforce and payroll tax challenges in 2026
For businesses large and small, the list of tax challenges continues to grow in 2026 – especially when it comes to areas such as workforce and payroll.
Remote work continues
In 2026, the continued prevalence of widescale remote work will force tax professionals to reevaluate multi-state nexus and withholding policies. And if you also consider digital services and the uncertain components of federal tax reform for companies that have a multi-state presence, the tax landscape this year will be even more complex – with any errors potentially leading to audits or requiring retroactive assessments.
No tax on tips and overtime
Employers must also prepare for compliance with the both the “no tax on tips” and “no tax on overtime” provisions of the OBBBA, which decrease tax burdens for many employees while presenting new compliance obligations for employers.
Payroll teams also must align with state-by-state requirements while tracking changes in federal forms and deadlines. And since both provisions are retroactive to Jan. 1, 2025, employers must coordinate with payroll providers so they can be prepared to implement these changes for the full 2025 tax year.
Employers would be well-served to analyze the current tracking and reporting functionalities of their payroll systems as early as possible to ensure they are well positioned to comply with reporting requirements and new IRS.
Comprehensive payroll resources
Savvy tax professionals can get a leg up on Trump tax analysis and research by accessing Bloomberg Tax Research’s payroll practice center. There, you can find comprehensive resources that provide explanations of payroll regulations and requirements across state and local income tax withholding, wage and hour laws and rules, wages and benefits, and federal tax computations.
You also can access continuous, real-time coverage of federal, state, local, and international payroll developments and tax transformation trends through news articles and practitioner insights – and create state charts covering taxes, compensation, leave, and more using our state chart builder and IRC conformity chart builder.
Tax governance, controls, and transparency expectations
With audit scrutiny on the rise, better data controls are essential to prevent last-minute scrambling and costly mistakes. Tax leaders should make 2026 the year they invest in tools that help their teams manage audit risk, document decisions, and integrate research directly into their workflows.
Bloomberg Tax’s suite of solutions strengthens audit-readiness through a cohesive workflow.
It begins inside the spreadsheet itself. As tax professionals build and review their work, the sources behind every number are already there. Primary law, expert analysis, and timely news from Bloomberg Tax Research are linked directly within Workpapers, so there is no need to toggle between tools or track down citations later. Chart Builders and the AI Assistant help surface insights in context, turning research from a separate task into a natural extension of the work already in progress.
The Bloomberg Tax suite further strengthens controls without adding manual effort Each adjustment is automatically tracked at the cell level, creating a clear, defensible record of how conclusions were reached.
Administrators maintain confidence and control through Artifact Access Management, which governs who can view, edit, and share data. Fixed Assets adds another layer of protection by documenting every update, enabling collaboration without sacrificing accountability.
When it is time to move data forward, that same rigor carries through. Exports between Workpapers, Fixed Assets, and Provision are safeguarded with built-in controls designed to preserve accuracy. Cell Mapping allows teams to send only the precise data points they intend, ensuring calculations arrive exactly where they belong and reinforcing trust at every handoff.
Action priorities for tax professionals in 2026
As the tax landscape becomes more interconnected with finance, operations, and technology, tax leaders must shift from merely reactive compliance to forward-looking strategy.
To develop and carry out a timely corporate tax strategy, tax professionals must be able to access trusted up-to-date insights while also conducting thorough financial planning and analysis (FP&A). These tasks can be difficult, however, as tax often is under-represented or last to be considered when it comes to budget and more – and some tax professionals may find that they lack appropriate resources.
But, in 2026, FP&A buy-in will be necessary for tax departments to achieve these priorities, and tax departments will need the right support and tools to navigate this complicated tax landscape. So, in 2026, top-performing corporate tax teams should focus on the following areas:
- Repositioning tax as a strategic advisor within the enterprise
Instead of merely focusing on tax preparation and filing, today’s tax teams can find more success when they work to help their enterprises and clients navigate the complexities of today’s tax legislation while providing strategic guidance that can support business growth and improve overall financial performance. - Investing in automation and trusted AI to scale expertise and control
Successful tax professionals will leverage the power of AI to more quickly and accurately analyze critical tax issues, regulations, and tax transformation trends, so they can not only confidently stay in compliance but also be better positioned to navigate change. - Redesigning workflows to align with new reporting complexity
Tax teams today are shrinking, and enterprises face talent shortages due to issues like retirement and a declining number of new accounting graduates. Meanwhile, manual workflows for tasks like data collection, calculations, reporting, and filing come with disadvantages and risks, including the possibility of human error, dependence on other departments for data collection, and inconsistencies in source system data.
But automation tools can easily apply updates to tax laws and compliance standards, ensuring all calculations stay current with little manual intervention. By redesigning workflows to include automation and account for new reporting complexities, savvy tax teams will be better equipped to streamline processes, improve accuracy, and optimize tax strategies – and will be better able to respond to regulatory tax changes. - Strengthening governance and disclosure readiness
It’s not enough to do business as usual. In fact, “[m]any governance frameworks designed for a more stable tax environment are no longer sufficient,” as these frameworks struggle to keep pace with expanding complexity and digitalization, according to EY Global.
So, smart tax teams will focus on improving governance and disclosure readiness so they can navigate complexity, stay in compliance with evolving regulations, manage risk, and pivot as needed to adapt and thrive in 2026’s dynamic tax environment.
For more insights on tax trends and the changing landscape, including forward-looking insights on regulatory and policy shifts, download the Bloomberg Tax 2026 Tax Policy Outlook filled with timely and strategic advice.