If you are starting your Richmond VA Tax Planning 2026, you need to understand how the One Big Beautiful Bill Act (OBBBA) changes the landscape for West End families.
I was talking with Jacob and Adam at the office yesterday about how many folks in Midlothian and Short Pump are flying blind into this new tax landscape. If you’ve been watching your mailbox lately, you know that Richmond VA Tax Planning 2026 isn’t just a buzzword—it’s a necessity for anyone trying to protect a legacy.
For years, many families near Short Pump Town Center felt like they were merging onto I-64 near the Broad Street exit during rush hour—watching their lane end with no clear way out. The One Big Beautiful Bill Act (OBBBA) has now bridged that “tax cliff,” bringing permanent stability to the tax code by making the lower individual rates permanent. But as a fiduciary with 40 years of experience, I can tell you: stability for the government doesn’t mean stability for your wallet. You need a strategy that protects you from the new “Tax Floor” and the phase-outs hitting our local high-earners.
The Framework: The 3-Bucket Strategy
To simplify your Richmond VA Tax Planning 2026, we divide your wealth into three distinct containers. How Uncle Sam treats these determines whether you retire on your terms or his.
Bucket 1: The “Taxed Later” Bucket (Pre-Tax)
This is your Traditional 401(k) or IRA. You got a break when you put the money in, but you’ll pay ordinary income rates when you take it out.
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The 2026 Standard Deduction: For 2026, the deduction for married couples is **$32,200** ($16,100 for singles).
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The New Senior Bonus: If you are 65 or older, the OBBBA adds a **$6,000 per person** senior deduction ($12,000 for couples).
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The Phase-Out: This bonus starts shrinking by 6 cents for every dollar your MAGI tops $75,000 (Single) or $150,000 (Joint).
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401(k) Limits: The individual limit is $24,500. If you’re 50+, the catch-up is $8,000, for a total of $32,500.
Bucket 2: The “Tax-Free” Bucket (Roth)
This is the “Golden Ticket”. You pay tax now to never pay it again.
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IRA Limits: The contribution limit for 2026 is **$7,500** ($8,600 if 50+).
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The Strategy: With rates locked in, we are advising many Richmond families to consider Roth Conversions now. Locking in these permanent lower rates protects you against future “goalpost shifting” by Congress.
Bucket 3: The “Taxed Always” Bucket (Brokerage)
These are your standard investment accounts. This is also where the “SALT Torpedo” lives.
Defusing the SALT Torpedo in Henrico & Chesterfield
The $10,000 cap on State and Local Taxes (SALT) hit neighborhoods like Wyndham and Twin Hickory hard. The OBBBA provides a massive, yet complex, relief bridge.
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The New Cap: For 2026, the SALT cap is raised to $40,400.
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The Phase-Out: This deduction is reduced by 30% for every dollar of income over $505,000.
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Local Property Taxes: Henrico recently cut its real estate tax rate to $0.83 per $100, and Chesterfield is down to $0.89. However, because reassessments in the West End rose by nearly 9%, your total bill is likely still higher than last year. Timing your income is the only way to keep this $40,400 deduction from being “torpedoed” back down to $10,000.
New 2026 Special Provisions: Vehicles & Kids
The OBBBA introduced specific perks—and traps—that every Short Pump family should know.
The “Made in America” Auto Deduction
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The Benefit: You can deduct up to $10,000 annually in interest paid on a loan for a qualified new, U.S.-made vehicle.
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Eligibility: The vehicle must have undergone final assembly in the U.S. and have a gross weight under 14,000 lbs.
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Income Limit: This phases out for joint filers with a MAGI over $200,000. If you’re eyeing a new SUV for Sunday drives to the Blue Ridge, check the VIN assembly code first.
Introducing “Trump Accounts”
Beginning July 4, 2026, a new savings vehicle for children launches.
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Government Grant: Children born between 2025 and 2028 receive a one-time $1,000 federal contribution.
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Annual Limit: You can contribute up to $5,000 annually (after-tax).
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Growth: Funds grow tax-deferred and can be converted to an IRA when the child turns 18.
The $15 Million Estate Shield
The OBBBA permanently increased the federal estate tax exemption to **$15 million per person** ($30 million for couples) starting in 2026. While this removes the “death tax” fear for most RVA families, it shifts the focus entirely to capital gains planning. The “step-up in basis” remains intact, meaning your heirs still get a fresh start on the value of the family home or local business when you pass away.
The Charitable Deduction “Floor”
One of the most overlooked changes in Richmond VA Tax Planning 2026 is the new hurdle for giving.
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The Floor: Donations are now only deductible after they exceed 0.5% of your AGI.
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The Math: If your AGI is $500,000, your first **$2,500** in donations won’t count toward your itemized deductions.
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The Solution: We are helping clients “bunch” donations or use a Donor-Advised Fund to clear this floor in high-income years.
The Steady Hand Advice
Choosing a Richmond VA Tax Planning 2026 strategy is about more than just numbers—it’s about your peace of mind. As fiduciary, fee-only advisors, we are legally and ethically bound to put your interests first. We don’t take commissions, and we often use Charles Schwab as a custodian to provide the most cost-effective plan options.
Whether you are a doctor at VCU or a business owner in Short Pump, the moves you make today will define your legacy. Don’t wait until the Broad Street traffic is backed up to look for an exit.
Frequently Asked Questions (RVA 2026 Tax Guide)
Can non-itemizers still get a break for giving? Yes. For 2026, the OBBBA allows non-itemizers to claim an above-the-line deduction of up to $1,000 for singles or $2,000 for joint filers for cash gifts to public charities.
What are the 2026 Solo 401(k) and SEP IRA limits? For 2026, the total contribution (employee + employer) for a Solo 401(k) or SEP IRA has risen to $72,000. The maximum compensation taken into account is now $360,000.
How does the Henrico property tax rate change affect me? Henrico reduced the real estate tax rate to $0.83 per $100. While this helps, rising assessments mean you should still plan for a higher total bill—which is why the new $40,400 SALT cap is so critical for your 2026 strategy.