I’m proud to pay taxes in the United States; the only thing is, I could be just as proud for half the money. — attributed to Arthur Godfrey, radio and TV host.

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Not many people enjoy paying taxes, but taxes aren’t going away anytime soon. Still, there are some things you might do to shrink your tax bill — and end up richer. Here’s a closer look at them.

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Buy to hold

We’ve all heard the term “buy and hold.” I prefer “buy to hold” because if you just buy into, say, stocks and then hold on for eons without keeping up with them, you might miss signs of deteriorating quality and might not get out of them when you should. So I aim to hold, but I don’t just blindly hang on for the ride.

The whole point of buying and holding is to stick with great investments through thick and thin, giving them a chance to perform. But some companies start off extremely promising, only to have circumstances change.

Consider Boeing, for example. It has long been a respected company and solid investment. Its 15-year average annual gain is 9.3%. But its average return over the past five years is a negative 10.7%. If you’ve followed the news, you’ve seen multiple quality issues pop up in recent years, with various Boeing planes experiencing malfunctions. Earnings have fallen and so has the stock. There has been a management shake-up, as well.

If, after researching the company further, you still have faith in its prospects for solid growth over the coming years, then do hang on. There’s reason to doubt that, though, so you should definitely consider selling, as well.

So aim to hold, but be ready to sell if and when that seems prudent. You’ll probably end up hanging on to lots of terrific businesses — and that can save you money in taxes. Why? Well, because anyone doing a lot of stock trading, particularly in a regular taxable investment account, is likely racking up plenty of tax hits, some of them short-term, too, which feature generally higher tax rates. By letting the investments you believe in keep growing over long periods, you can put off paying taxes on those gains — potentially forever, if you end up leaving them to your heirs.

Use tax-advantaged retirement accounts

The tax-advantaged retirement accounts I’m referring to here are IRAs and 401(k) plans. Each comes in two key varieties — traditional and Roth. With a traditional account, you make pre-tax contributions, and your taxable income shrinks by the amount of your contribution. With a Roth account, you contribute post-tax money (and get no upfront tax break), and if you play by the rules, all your withdrawals in retirement can be tax free.

If you’d invested in an amazing performer such as Netflix or Nvidia early on in a Roth IRA, you might be sitting on a position worth $100,000, $500,000, or more — and you’d eventually get to take that all out without paying any taxes on it!

Even with traditional IRAs or 401(k)s, you get your upfront tax breaks. Know that IRA contribution limits for 2025 are $7,000 or $8,000 if you’re 50 or older. The 401(k) contribution limit is $23,500 for 2025, with a $7,500 catch-up contribution allowed for those 50 or older. If you contribute, say, $10,000 to your 401(k) account for 2025, you’ll get to deduct $10,000 from your taxable income. In a 24% tax bracket, you’d be saving $2,400!

More tax-saving tips

Those are two key ways you might keep taxes in check, but they’re not the only ways. Other good tax-saving strategies include:

• Learn about taxes on investments.
• “Harvest” any tax losses you can to offset gains.
• Claim any tax deductions that you can.
• Look for and grab any tax credits available to you.
• Learn about taxation in retirement.

Taxes are inevitable, but the amount you pay isn’t written in stone. With some smart moves, you may be able to shrink your tax bill — every year.

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Selena Maranjian has positions in Netflix and Nvidia. The Motley Fool has positions in and recommends Netflix and Nvidia. The Motley Fool has a disclosure policy.