If you're looking for tax planning strategies for high income earners, start with the thresholds. They tell you which taxes you're actually exposed to, and they decide which strategies are worth the effort. Below is what changes at higher income, and where planning usually pays off. Simple language. Serious strategies. No hype.
At what income do high earners face the biggest federal taxes?
For 2026, the top 37% rate applies to single filers with income above $640,600 and to married couples filing jointly above $768,700. The 3.8% Net Investment Income Tax starts much sooner, at a modified adjusted gross income of $200,000 for single filers and $250,000 for joint filers.
| Tax | Single | Married filing jointly |
|---|---|---|
| 37% top rate begins (2026) | $640,600 | $768,700 |
| 3.8% NIIT MAGI threshold | $200,000 | $250,000 |
Which tax planning strategies help high earners the most?
Start with the levers you control: what you defer into retirement plans, when income and deductions land, and how your business income is structured. In 2026 the 401(k) employee deferral limit is $24,500, with an $8,000 catch-up at 50 and older, so a maxed-out plan is the baseline before anything advanced.
Here is an illustration with made-up numbers, not a client result. If your last dollars of income sit in the 37% bracket, deferring the full $24,500 into a 401(k) would push up to $9,065 of federal income tax to a later year (24,500 x 37%). It is a deferral, not a permanent saving, because withdrawals are taxed later. Beyond the plan, we look at real estate depreciation and charitable giving.
How can you reduce the 3.8% net investment income tax?
The NIIT applies to the lesser of your net investment income or the amount your MAGI exceeds the threshold, so you can reduce it by lowering MAGI or by lowering investment income. Which of those is realistic depends on your mix of wages, business income and portfolio gains.
Two more made-up examples show why. A single filer with $320,000 of MAGI and $90,000 of net investment income is $120,000 over the threshold, so the tax applies to the lesser figure, $90,000, or $3,420. With $260,000 of MAGI and the same investment income, the excess is only $60,000, so the base is $60,000 and the tax is $2,280. Lowering MAGI helped in the second case, not the first.
Can business owners use the QBI deduction?
Often, yes, since many owners of sole proprietorships, partnerships and S corporations may deduct up to 20 percent of qualified business income, though C corporation income and employee wages don't qualify. On $250,000 of qualified business income, 20% is $50,000 before any limits.
Whether you get the full deduction depends on your income and business type, so check it before you set owner pay. Our guide to business tax planning strategies covers owner pay and retirement plans.
Where does a CPA and attorney add value here?
Advanced strategies sit where tax law meets legal structure: entities, trusts and contracts. Having both licenses in one office means the tax plan and the legal documents get built together instead of handed back and forth.
We stay on the right side of the line between advanced tax strategies and abusive shelters, on purpose. If a strategy only works when nobody looks closely, we won't recommend it. For a wider look at this topic, see our existing guide to tax strategies for high-income earners.
If you'd like to see how this applies to your situation, book your tax strategy call or call 702-852-2577. For how we approach the bigger picture, see our advanced tax strategies page.
About the author: D. Lenny Whiting, Esq., CPA, MS is the Managing Partner of CPA Attorney, LLC in Las Vegas. He is a licensed attorney in Nevada and Utah and a Nevada CPA. More about Lenny.
This article is general information, not legal or tax advice for your situation. Tax rules change, and results depend on your facts.
