Lower your taxable income for 2025 with smart strategies. You still have time to minimize what you owe the IRS.

Here are six effective methods to decrease your tax burden before midnight on December 31:

1. Boost Contributions to Your Retirement Plan

Consider asking your employer to increase your final 2025 contributions to your 401(k), 403(b), 457(b), or any other workplace retirement option. For 2025, the contribution limit for these plans is $23,500 for those under 50. If you're aged 50-59 or 64 and older, you can add another $7,500 in catch-up contributions. Those aged 60-63 can contribute an additional $11,250. Remember, contributions to a traditional IRA or Roth IRA can be made until the tax return filing date for the previous year.

2. Contribute to Your Health Savings Account

Your health savings account (HSA) allows for year-end contributions as well. For 2025, individuals can contribute up to $4,300 for self-only coverage and $8,550 for family coverage. If you're 55 or older, you can add a $1,000 catch-up contribution. Keep in mind that these limits include employer contributions, so make sure you stay within the allowable amounts.

3. Make Charitable Donations

You can donate to charity via cash, credit, or mail until December 31. If you send a check, the IRS considers the mailing date as the official contribution date. If you have a donor-advised fund (DAF) — here's how it works — consider making one last donation before the new year. Remember, you can donate more than just cash to your DAF; appreciated stocks and real estate are also acceptable.

4. Combine and Accelerate Deductions

Combining deductions, or bunching them into one year, can enhance the benefits of itemizing. Try making an extra mortgage payment or charitable donation before the year ends.

5. Implement Tax Loss Harvesting

Even if the stock market has performed well, not all investments have appreciated. Review your taxable investment accounts to identify any losses you can realize. Tax loss harvesting involves selling a security at a loss to offset capital gains, allowing you to deduct up to $3,000 of ordinary income reported on your tax return. Any remaining losses can be carried forward. If you wish to repurchase a sold security, be sure to wait 31 days to avoid complications.

6. Fund 529 College Savings Accounts

If you seek deductions on your state taxable income, consider contributing to a 529 college savings plan. Check with your 529 account custodian to learn the last date they accept 2025 contributions. Note that deductible amounts can differ by state.

This holiday season, while you're giving to others, remember to take these steps before year-end to help yourself save on taxes.