2026 Small Business Tax Deductions in Dallas, TX

Common Business Expenses You Can Legally Deduct

Running a small business comes with significant tax benefits. Here are the deductions you need to claim in 2026.

Section 179 Deduction

The Section 179 deduction allows businesses to deduct the full purchase price of qualifying equipment:

• – 2026 Limit: $1,220,000
• – Phase-out threshold: $3,050,000

Qualified Business Income (QBI) Deduction

Pass-through entities can still claim up to 20% of qualified business income:

• – Available for sole proprietors, partnerships, and S-corps
• – Income limitations apply for certain service businesses
• – Plan your income to maximize this deduction

Home Office Deduction

If you work from home, you can deduct:

• – Simplified method: $5 per square foot (up to 300 sq ft)
• – Regular method: Actual expenses based on percentage of home use

Vehicle Expenses

Choose between:

• – Standard mileage rate: 70 cents per mile (projected for 2026)
• – Actual expense method: Gas, maintenance, insurance, depreciation

Health Insurance Premiums

Self-employed individuals can deduct 100% of health insurance premiums for themselves and their families.

Retirement Plan Contributions

• – SEP IRA: Up to 25% of net self-employment income
• – Solo 401(k): Up to $69,500 total contribution

Need help maximizing your deductions? Schedule a consultation with DWC Tax Pro today.