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1 Contribution is fully deductible if minimum contribution amount is met and cost of token gift does not exceed maximum
2 Charitable contribution is fully deductible if the benefit received by the donor doesn’t exceed the lesser of the threshold amount or 2% of the amount of the contribution
Child tax credit
Amount of credit
2025
2026
Maximum credit per qualifying child
$2,200
$2,200
Nonrefundable credit for dependents who are not qualifying children
$500
$500
Phaseout — credit reduced by $50 for each $1,000 or fraction thereof of MAGI over:
2025
2026
Married filing jointly
$400,000
$400,000
All other filing status
$200,000
$200,000
Refundability — up to specified percentage of earned income in excess of specified amount
2025
2026
Percentage
15%
15%
Amount
$2,500
$2,500
Maximum refundable amount of credit
$1,700
$1,700
Nonrefundable credit for dependents who are not qualifying children
2025
2026
Amount
$500
$500
Classroom expenses of elementary and secondary school teachers
Classroom expense deduction
2025
2026
Maximum above-the-line deduction
$300
$350 1
1 Educator expenses above this limit may be claimed as an itemized deduction
Earned income tax credit (EITC)
Investment income limit
2025
2026
Excessive investment income limit (“disqualified income limit”)
$11,950
$12,200
Maximum amount of EITC per number of children
2025
2026
0 children
$649
$664
1 child
$4,328
$4,427
2 children
$7,152
$7,316
3 or more children
$8,046
$8,231
Maximum amount of earned income on which EITC is based (earned income over this amount but under the threshold phaseout amount will not change the amount of the credit received)
2025
2026
0 children
$8,490
$8,680
1 child
$12,730
$13,020
2 or more children
$17,880
$18,290
Threshold phaseout amount for joint filers per number of children
2025
2026
0 children
$17,730
$18,140
1 child
$30,470
$31,160
2 children
$30,470
$31,160
3 or more children
$30,470
$31,160
Threshold phaseout amount for other filers per number of children
2025
2026
0 children
$10,620
$10,860
1 child
$23,350
$23,890
2 children
$23,350
$23,890
3 or more children
$23,350
$23,890
Completed phaseout amount for joint filers per number of children
2025
2026
0 children
$26,214
$26,820
1 child
$57,554
$58,863
2 children
$64,430
$65,899
3 or more children
$68,675
$70,224
Completed phaseout amount for other filers per number of children
2025
2026
0 children
$19,104
$19,540
1 child
$50,434
$51,593
2 children
$57,310
$58,628
3 or more children
$61,555
$62,974
Expatriation
Covered expatriate
2025
2026
An individual with “average annual net income tax” of more than this amount for the five taxable years ending before his or her loss of citizenship is a covered expatriate for the purposes of IRC §877A(g)(1)
$206,000
$211,000
IRC §877A(3) exclusion amount
$890,000
$910,000
Foreign earned income
Amount excluded from income
2025
2026
Exclusion amount
$130,000
$132,900
Itemized deductions
Phaseout
2025
2026
Phaseout / limitation
For those in highest tax bracket, value of each dollar of itemized deductions capped at $0.35
For those in highest tax bracket, value of each dollar of itemized deductions capped at $0.35
Kiddie tax
Unearned income limit
2025
2026
Amount exempt from tax
$1,350
$1,350
Additional amount taxed at child’s rate
$1,350
$1,350
Unearned income over this amount generally taxed at parents’ tax rates
$2,700
$2,700
Parent’s election
2025
2026
Election to include child’s income on parent’s return — child’s gross income requirement
$1,350 – $13,500
$1,350 – $13,500
AMT
2025
2026
AMT exemption for child subject to kiddie tax
Lesser of $9,550 + child’s earned income or $88,100
Lesser of $9,750 + child’s earned income or $90,100
Medicare tax (additional payroll tax and unearned income contribution tax)
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding
2025
2026
Individuals
$200,000
$200,000
Married filing jointly
$250,000
$250,000
Married filing separately
$125,000
$125,000
Nanny tax
Compensation threshold
2025
2026
Domestic employee coverage threshold
$2,800
$3,000
Overtime deduction
Maximum deduction
2025
2026
Single, Head of Household
$12,500
$12,500
Married Filing Jointly
$25,000
$25,000
Phaseout threshold:
2025
2026
Single, Head of Household
$150,000
$150,000
Married Filing Jointly
$300,000
$300,000
Full phaseout at:
2025
2026
Single, Head of Household
$275,000
$275,000
Married Filing Jointly
$550,000
$550,000
“Saver’s Credit”
Elective Deferrals and IRA or ABLE Contributions by Certain Individuals
2025
2026
Maximum credit amount
$1,000
$1,000
Applicable percentage of 50% applies to AGI
2025
2026
Joint Return
$0 – $47,500
$0 – $48,500
Head of Household
$0 – $35,625
$0 – $36,375
Other
$0 – $23,750
$0 – $24,250
Applicable percentage of 20% applies to AGI
2025
2026
Joint Return
$47,501 – $51,000
$48,501 – $52,500
Head of Household
$35,626 – $38,250
$36,376 – $39,375
Other
$23,751 – $25,500
$24,251 – $26,250
Applicable percentage of 10% applies to AGI
2025
2026
Joint Return
$51,001 – $79,000
$52,501 – $80,500
Head of Household
$38,251 – $59,250
$39,376 – $60,375
Other
$25,501 – $39,500
$26,251 – $40,250
Applicable percentage of 0% applies to AGI
2025
2026
Joint Return
Over $79,000
Over $80,500
Head of Household
Over $59,250
Over $60,375
Other
Over $39,500
Over $40,250
Senior deduction (individuals age 65 or older)
Maximum deduction
2025
2026
Amount
$6,000 per qualified individual
$6,000 per qualified individual
Phaseout threshold:
2025
2026
Single, Head of Household
$75,000
$75,000
Married Filing Jointly
$150,000
$150,000
Full phaseout at:
2025
2026
Single, Head of Household
$175,000
$175,000
Married Filing Jointly
$250,000
$250,000
Standard deductions
Amounts
2025
2026
Married filing jointly or surviving spouse
$31,500
$32,200
Head of household
$23,625
$24,150
Unmarried
$15,750
$16,100
Married filing separately
$15,750
$16,100
Dependent–Standard deduction cannot exceed the greater of:
$1,350 or $450 + earned income
$1,350 or $450 + earned income
Additional deduction for aged or blind (single or head of household)
$2,000
$2,050
Additional deduction for aged or blind (all other filing statuses)
$1,600
$1,650
Standard mileage rates
Applicable rates
2025
2026
Use of auto for business purposes (cents per mile)
$0.70
TBD
Use of auto for medical purposes (cents per mile)
$0.21
TBD
Use of auto for moving purposes (cents per mile)
$0.21
TBD
Tip income deduction
Maximum deduction
2025
2026
Amount
$25,000
$25,000
Phaseout threshold:
2025
2026
Single, Head of Household
$150,000
$150,000
Married Filing Jointly
$300,000
$300,000
Full phaseout at:
2025
2026
Single, Head of Household
$400,000
$400,000
Married Filing Jointly
$550,000
$550,000
2026 Federal Income Tax Rate Schedules (Individuals, Trusts, and Estates)
Single taxpayers
If taxable income is:
Your tax is:
Not over $12,400
10% of taxable income
Over $12,400 to $50,400
$1,240 + 12% of the excess over $12,400
Over $50,400 to $105,700
$5,800 + 22% of the excess over $50,400
Over $105,700 to $201,775
$17,966 + 24% of the excess over $105,700
Over $201,775 to $256,225
$41,024 + 32% of the excess over $201,775
Over $256,225 to $640,600
$58,448 plus 35% of the excess over $256,225
Over $640,600
$192,979.25 plus 37% of the excess over $640,600
Married filing jointly and surviving spouses
If taxable income is:
Your tax is:
Not over $24,800
10% of taxable income
Over $24,800 to $100,800
$2,480 + 12% of the excess over $24,800
Over $100,800 to $211,400
$11,600 plus 22% of the excess over $100,800
Over $211,400 to $403,550
$35,932 plus 24% of the excess over $211,400
Over $403,550 to $512,450
$82,048 plus 32% of the excess over $403,550
Over $512,450 to $768,700
$116,896 plus 35% of the excess over $512,450
Over $768,700
$206,583.50 plus 37% of the excess over $768,700
Married individuals filing separately
If taxable income is:
Your tax is:
Not over $12,400
10% of taxable income
Over $12,400 to $50,400
$1,240 + 12% of the excess over $12,400
Over $50,400 to $105,700
$5,800 + 22% of the excess over $50,400
Over $105,700 to $201,775
$17,966 + 24% of the excess over $105,700
Over $201,775 to $256,225
$41,024 + 32% of the excess over $201,775
Over $256,225 to $384,350
$58,448 plus 35% of the excess over $256,225
Over $384,350
$103,291.75 plus 37% of the excess over $384,350
Heads of household
If taxable income is:
Your tax is:
Not over $17,700
10% of taxable income
Over $17,700 to $67,450
$1,770 + 12% of the excess over $17,700
Over $67,450 to $105,700
$7,740 plus 22% of the excess over $67,450
Over $105,700 to $201,750
$16,155 plus 24% of the excess over $105,700
Over $201,750 to $256,200
$39,207 plus 32% of the excess over $201,750
Over $256,200 to $640,600
$56,631 plus 35% of the excess over $256,200
Over $640,600
$191,171 plus 37% of the excess over $640,600
Trusts and estates
If taxable income is:
Your tax is:
Not over $3,300
10% of taxable income $3,851 + 37% of the excess over $16,000
Over $3,300 to $11,700
$330 + 24% of the excess over $3,300
Over $11,700 to $16,000
$2,346 + 35% of the excess over $11,700
Over $16,000
$3,851 + 37% of the excess over $16,000
2025 Federal Income Tax Rate Schedules (Individuals, Trusts, and Estates)
Single taxpayers
If taxable income is:
Your tax is:
Not over $11,925
10% of taxable income
Over $11,925 to $48,475
$1,192.50 + 12% of the excess over $11,925
Over $48,475 to $103,350
$5,578.50 + 22% of the excess over $48,475
Over $103,350 to $197,300
$17,651 + 24% of the excess over $103,350
Over $197,300 to $250,525
$40,199 + 32% of the excess over $197,300
Over $250,525 to $626,350
$57,231 + 35% of the excess over $250,525
Over $626,350
$188,769.75 + 37% of the excess over $626,350
Married filing jointly and surviving spouses
If taxable income is:
Your tax is:
Not over $23,850
10% of taxable income
Over $23,850 to $96,950
$2,385 + 12% of the excess over $23,850
Over $96,950 to $206,700
$11,157 + 22% of the excess over $96,950
Over $206,700 to $394,600
$35,302 + 24% of the excess over $206,700
Over $394,600 to $501,050
$80,398 + 32% of the excess over $394,600
Over $501,050 to $751,600
$114,462 + 35% of the excess over $501,050
Over $751,600
$202,154.50 + 37% of the excess over $751,600
Married individuals filing separately
If taxable income is:
Your tax is:
Not over $11,925
10% of taxable income
Over $11,925 to $48,475
$1,192.50 + 12% of the excess over $11,925
Over $48,475 to $103,350
$5,578.50 + 22% of the excess over $48,475
Over $103,350 to $197,300
$17,651 + 24% of the excess over $103,350
Over $197,300 to $250,525
$40,199 + 32% of the excess over $197,300
Over $250,525 to $375,800
$57,231 + 35% of the excess over $250,525
Over $375,800
$101,077.25 + 37% of the excess over $375,800
Heads of household
If taxable income is:
Your tax is:
Not over $17,000
10% of taxable income
Over $17,000 to $64,850
$1,700 + 12% of the excess over $17,000
Over $64,850 to $103,350
$7,442 + 22% of the excess over $64,850
Over $103,350 to $197,300
$15,912 + 24% of the excess over $103,350
Over $197,300 to $250,500
$38,460 + 32% of the excess over $197,300
Over $250,500 to $626,350
$55,484 + 35% of the excess over $250,500
Over $626,350
$187,031.50 + 37% of the excess over $626,350
Trusts and estates
If taxable income is:
Your tax is:
Not over $3,150
10% of taxable income
Over $3,150 to $11,450
$315 + 24% of the excess over $3,150
Over $11,450 to $15,650
$2,307 + 35% of the excess over $11,450
Over $15,650
$3,777 + 37% of the excess over $15,650
Business Planning
Adoption Assistance Programs
Adoption assistance
2025
2026
Maximum amount that can be excluded from employee’s gross income
$17,280
$17,670
Phaseout threshold amount
$259,190
$265,080
Completed phaseout amount after
$299,190
$305,080
Earnings subject to FICA taxes (taxable wage base)
FICA tax
2025
2026
Maximum annual earnings subject to Social Security taxes
$176,100
$184,500
Social Security and Medicare combined tax rate
15.30% 1
15.30% 1
OASDI portion (Social Security)
12.40%
12.40%
Hospital Insurance portion (Medicare)
2.90% 1
2.90% 1
1 An additional Medicare (HI) employee contribution rate of 0.9% (for a total employee contribution of 2.35%, and a total combined Medicare contribution rate of 3.8%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). For married individuals filing joint returns, the additional 0.9% tax applies to the couples combined wages (to the extent the combined wages exceed $250,000).
Health insurance deduction for self-employed
Health insurance premiums
2025
2026
Deduction for health insurance premiums paid by self-employed persons
100%
100%
Qualified transportation fringe benefits
Qualified transportation fringe benefits
2025
2026
Commuter vehicles and transit pass monthly exclusion amount
Maximum amount that may be deducted under IRC Section 179
$2,500,000
$2,560,000
Deduction reduced by the amount by which the cost of §179 property placed in service during the year exceeds this amount
$4,000,000
$4,090,000
Small business tax credit for providing health-care coverage
Amount of credit
2025
2026
Maximum credit percentage
50%
50%
Partial credit
2025
2026
Number of full-time equivalent employees (FTEs) fewer than:
25
25
Maximum average annual wages less than:
$66,600
$68,200
Full credit
2024
2026
Number of full-time equivalent employees (FTEs) no more than:
10
10
Maximum average annual wages less than or equal to:
$32,400
$34,100
Special additional first-year depreciation allowance
Bonus depreciation
2025
2026
“Bonus” depreciation for qualified property acquired and placed in service during specified time periods
100%²
100%
2 For property acquired after January 19, 2025
Standard mileage rate (per mile)
Business use of auto
2025
2026
Use of auto for business purposes
$0.70
TBD
Education Planning
American Opportunity and Lifetime Learning Credits
Education credits
2025
2026
Maximum American Opportunity credit
$2,500
$2,500
Maximum Lifetime Learning credit
$2,000
$2,000
MAGI phaseout range for American Opportunity credit
2025
2026
Single–phaseout threshold amount
$80,000
$80,000
Single–completed phaseout amount after
$90,000
$90,000
Married filing jointly–phaseout threshold amount
$160,000
$160,000
Married filing jointly–completed phaseout amount after
$180,000
$180,000
MAGI phaseout range for Lifetime Learning credit
2025
2026
Single–phaseout threshold amount
$80,000
$80,000
Single–completed phaseout amount after
$90,000
$90,000
Married filing jointly–phaseout threshold amount
$160,000
$160,000
Married filing jointly–completed phaseout amount after
$180,000
$180,000
Coverdell education savings accounts
Coverdell ESAs
2025
2026
Annual contribution limit
$2,000
$2,000
MAGI phaseout range for Coverdell education savings accounts
2025
2026
Single–phaseout threshold amount
$95,000
$95,000
Single–completed phaseout amount after
$110,000
$110,000
Married filing jointly–phaseout threshold amount
$190,000
$190,000
Married filing jointly–completed phaseout threshold amount
$220,000
$220,000
Deduction for student loan interest
Education loan interest deduction
2025
2026
Maximum deduction for interest paid on qualified education loans
$2,500
$2,500
MAGI phaseout range
2025
2026
Single–phaseout threshold amount
$85,000
$85,000
Single–completed phaseout amount after
$100,000
$100,000
Married filing jointly–phaseout threshold amount
$170,000
$175,000
Married filing jointly–completed phaseout amount after
$200,000
$205,000
Gift tax exclusion
Gift tax
2025
2026
Annual gift tax exclusion–single individual
$19,000
$19,000
Annual gift tax exclusion–joint gift
$38,000
$38,000
Lump-sum gift to 529 plan–single individual
$95,000
$95,000
Lump-sum gift to 529 plan–joint gift
$190,000
$190,000
Kiddie tax
Kiddie tax
2025
2026
Children’s unearned income over this amount generally taxed at parents’ tax rates
$2,700
$2,700
U.S. savings bonds interest exclusion for college expenses
Joint returns
2025
2026
Phaseout threshold for joint returns
$149,250
$152,650
Completed phaseout amount after
$179,250
$182,650
Other returns
2025
2026
Phaseout threshold for other returns
$99,500
$101,800
Completed phaseout amount after
$114,500
$116,800
Protection Planning
Eligible long-term care premium deduction limits:
LTC premium deduction limits
2025
2026
Age 40 or under
$480
$500
Age 41-50
$900
$930
Age 51-60
$1,800
$1,860
Age 61-70
$4,810
$4,960
Over age 70
$6,020
$6,200
Per diem limit:
LTC periodic payments
2025
2026
Periodic payments for qualified long-term care insurance/certain life insurance
$420
$430
Archer Medical Savings Accounts
High deductible health plan–self-only coverage
2025
2026
Annual deductible–minimum
$2,850
$2,900
Annual deductible–maximum
$4,300
$4,400
Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed
$5,700
$5,850
High deductible health plan–family coverage
2025
2026
Annual deductible–minimum
$5,700
$5,850
Annual deductible–maximum
$8,550
$8,750
Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed
$10,500
$10,700
Flexible spending account (FSA) for health care
Health care FSAs
2025
2026
Maximum salary reduction contribution
$3,300
$3,400
Health Savings Accounts (HSAs)
Annual contribution limit
2025
2026
Self-only coverage
$4,300
$4,400
Family coverage
$8,550
$8,750
High deductible health plan–self-only coverage
2025
2026
Annual deductible–minimum
$1,650
$1,700
Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed
$8,300
$8,500
High deductible health plan–family coverage
2025
2026
Annual deductible–minimum
$3,300
$3,400
Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed
$16,600
$17,000
Catch-up contributions
2025
2026
Annual catch-up contribution limit for individuals age 55 or older
$1,000
$1,000
Estate Planning
Key indexed figures
2025
2026
Annual gift exclusion:
$19,000
$19,000
Gift and estate tax applicable exclusion amount:
$13,990,000 + DSUEA 1
$15,000,000 + DSUEA 1
Noncitizen spouse annual gift exclusion:
$190,000
$194,000
Generation-skipping transfer (GST) tax exemption:
$13,990,000 2
$15,000,000 2
Special use valuation limit (qualified real property in decedent’s gross estate):
$1,420,000
$1,460,000
1 Basic exclusion amount plus deceased spousal unused exclusion amount (exclusion is portable for 2011 and later years)
2 The GST tax exemption is not portable
2025 and 2026 gift and estate tax rate schedule
Taxable Estate
Tentative Tax Equals
Plus
Of Amount Over
0 – $10,000
$0
18%
$0
$10,000 – $20,000
$1,800
20%
$10,000
$20,000 – $40,000
$3,800
22%
$20,000
$40,000 – $60,000
$8,200
24%
$40,000
$60,000 – $80,000
$13,000
26%
$60,000
$80,000 – $100,000
$18,200
28%
$80,000
$100,000 – $150,000
$23,800
30%
$100,000
$150,000 – $250,000
$38,800
32%
$150,000
$250,000 – $500,000
$70,800
34%
$250,000
$500,000 – $750,000
$155,800
37%
$500,000
$750,000 – $1,000,000
$248,300
39%
$750,000
$1,000,000 +
$345,800
40%
$1,000,000
Credit shelter amount $13,990,000 in 2025 and $15,000,000 in 2026
Unified credit amount $5,541,800 in 2025 and $5,945,800 in 2026
Government Benefits
Social Security
Social Security Cost-of-living adjustment (COLA)
2025
2026
For Social Security and Supplemental Security Income (SSI) beneficiaries
2.50%
2.80%
Tax rate–employee
2025
2026
FICA tax — Employee
7.65%
7.65%
Social Security (OASDI) portion of tax
6.20%
6.20%
Medicare (HI) portion of tax
1.45% 1
1.45% 1
Tax rate–self-employed
2025
2026
Self-Employed
15.30%
15.30%
Social Security (OASDI) portion of tax
12.40%
12.40%
Medicare (HI) portion of tax
2.90% 1
2.90% 1
1 An additional 0.9% Medicare/hospital insurance tax (for a total employee contribution of 2.35%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). An additional 0.9% Medicare/hospital insurance tax (for a total Medicare portion of 3.8%) is assessed on self-employment income exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns).
Maximum taxable earnings
2025
2026
Social Security (OASDI only)
$176,100
$184,500
Medicare (HI only)
No Limit
No limit
Quarter of coverage
2025
2026
Earnings required
$1,810
$1,890
Retirement earnings test–exempt amounts–Under full retirement age–Benefits reduced by $1 for each $2 earned above:
2025
2026
Yearly figure
$23,400
$24,480
Monthly figure
$1,950
$2,040
Retirement earnings test–exempt amounts–Year individual reaches full retirement age–Benefits reduced by $1 for each $3 earned above (applies only to earnings for months prior to attaining full retirement age):
2025
2026
Yearly figure
$62,160
$65,160
Monthly figure
$5,180
$5,430
Retirement earnings test–exempt amounts–Beginning the month individual attains full retirement age
2025
2026
No limit on earnings
No limit on earnings
Social Security disability thresholds
2025
2026
Substantial gainful activity (SGA) for the sighted (monthly figure)
$1,620
$1,690
Substantial gainful activity for the blind (monthly figure)
$2,700
$2,830
Trial work period (TWP) (monthly figure)
$1,160
$1,210
SSI federal payment standard
2025
2026
Individual (monthly figure)
$967
$994
Couple (monthly figure)
$1,450
$1,491
SSI resource limits
2025
2026
Individual
$2,000
$2,000
Couple
$3,000
$3,000
SSI student exclusion limits
2025
2026
Monthly limit
$2,350
$2,410
Annual limit
$9,460
$9,730
Maximum Social Security benefit
2025
2026
Worker retiring at full retirement age (monthly figure)
$4,018
$4,152
Formula for Monthly Primary Insurance Amount (PIA)
2025
2026
(90% of first X of AIME + 32% of the AIME over X and through Y + 15% of AIME over Y)
X=$1,226 Y=$7,391
X=$1,286 Y=$7,749
Medicare
Medicare monthly premium amounts–Part A (hospital insurance) premium
2025
2026
Individuals with 40 or more quarters of Medicare-covered employment
$0
$0
Individuals with less than 40 quarters of Medicare-covered employment who are not otherwise eligible for premium-free hospital insurance
Up to $518
Up to $565
Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who file an individual income tax return with income that is:
2025
2026
2025
2026
Less than or equal to $106,000
Less than or equal to $109,000
$185.00 2
$202.90 2
$106,001 – $133,000
$109,001 – $137,000
$259.00
$284.10
$133,001 – $167,000
$137,001 – $171,000
$370.00
$405.80
$167,001 – $200,000
$171,001 – $205,000
$480.90
$527.50
$200,001 – $499,999
$205,001 – $499,999
$591.90
$649.20
$500,000 and above
$500,000 and above
$628.90
$689.90
Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who file a joint income tax return with income that is:
2025
2026
2025
2026
Less than or equal to $212,000
Less than or equal to $218,000
$185.00 2
$202.90 2
$212,001 – $266,000
$218,000 – $274,000
$259.00
$284.10
$266,001 – $334,000
$274,001 – $342,000
$370.00
$405.80
$334,001 – $400,000
$342,001 – $410,000
$480.90
$527.50
$400,001 – $749,999
$410,001 – $749,999
$591.90
$649.20
$750,000 and above
$750,000 and above
$628.90
$689.90
Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who are married, but file a separate tax return from their spouse and lived with spouse at some time during the taxable year with income that is:
2025
2026
2025
2026
Less than or equal to $106,000
Less than or equal to $109,000
$185.00 2
$202.90 2
$106,001 – $393,999
$109,001 – $390,999
$591.90
$649.20
$394,000 and above
$391,000 and above
$628.90
$689.90
2 This is the standard Part B premium amount. However, some people who get Social Security benefits will pay more or less than this amount.
Original Medicare plan deductible and coinsurance amounts–Part A (hospital insurance)
2025
2026
Deductible per benefit period
$1,676
$1,736
Coinsurance per day for 61st to 90th day of each benefit period
$419
$434
Coinsurance per day for 91st to 150th day for each lifetime reserve day (total of 60 lifetime reserve days–nonrenewable)
$838
$868
Original Medicare plan deductible and coinsurance amounts
2025
2026
Skilled nursing facility coinsurance per day for 21st to 100th day of each benefit period
$209.50
$217.00
Original Medicare plan deductible and coinsurance amounts–Part B (medical insurance) annual deductible
2025
2026
Individual pays 20 percent of the Medicare-approved amount for services after deductible is met
$257
$283
Medicaid
Income threshold
2025
2026
Monthly income threshold for income-cap states (“300 percent cap limit”)
$2,901
$2,982
Monthly maintenance needs allowance for at-home spouse
2025
2026
Minimum 3
$2,555.00
$2,643.75
Maximum
$3,948.00
TBD
Community spousal resource allowance
2025
2026
Minimum
$31,584
TBD
Maximum
$157,920
TBD
3 Amounts listed actually effective as of July of prior year; different amounts apply to Alaska and Hawaii.
Retirement Planning
Employee/individual contribution limits
Elective deferral limits
2025
2026
401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs 1 [Includes Roth 401(k) and Roth 403(b) contributions]
Lesser of $23,500 or 100% of participant’s compensation
Lesser of $24,500 or 100% of participant’s compensation
SIMPLE 401(k) plans and SIMPLE IRA plans 1
Lesser of $16,500 or 100% of participant’s compensation
Lesser of $17,000 or 100% of participant’s compensation
SIMPLE 401(k) plans and SIMPLE IRA plans with 25 or fewer employees (or those that elect these higher limits) 1
Lesser of $17,600 or 100% of participant’s compensation
Lesser of $18,100 or 100% of participant’s compensation
Starter 401(k) plans and safe-harbor 403(b) plans
Between 3% and 15% of annual compensation up to a maximum of $6,000 ($7,000 if age 50 or older)
Between 3% and 15% of annual compensation up to a maximum of $6,000 ($7,100 if age 50 or older)
1 Must aggregate employee contributions to all 401(k), 403(b), SAR-SEP, and SIMPLE plans of all employers. 457(b) plan contributions are not aggregated. For SAR-SEPs, the percentage limit is 25% of compensation reduced by elective deferrals (effectively, a 20% maximum contribution).
IRA contribution limits
2025
2026
Traditional IRAs
Lesser of $7,000 or 100% of earned income
Lesser of $7,500 or 100% of earned income
Roth IRAs
Lesser of $7,000 or 100% of earned income
Lesser of $7,500 or 100% of earned income
Additional “catch-up” limits (individuals age 50 or older)
2025
2026
401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs 2
$7,500
$8,000
*Catch-up limit if age 60 to 63
$11,250
$11,250
SIMPLE 401(k) plans and SIMPLE IRA plans
$3,500 ($3,850 for plans with 25 or fewer employees, or that elect this higher limit)
$4,000 ($3,850 for plans with 25 or fewer employees, or that elect this higher limit)
*Catch-up limit if age 60 to 63
$5,250
$5,250
Income threshold at which catch-up contributions must be designated as Roth contributions (employer-sponsored retirement plans)
N/A
$150,000
IRAs (traditional and Roth)
$1,000
$1,100
2 Special catch-up limits may also apply to 403(b) and 457(b) plan participants.
Employer contribution/benefit 3 limits
Defined benefit plan limits
2025
2026
Annual contribution limit per participant
No predetermined limit. Contributions based on amount needed to fund promised benefits.
No predetermined limit. Contributions based on amount needed to fund promised benefits.
Annual benefit limit per participant
Lesser of $280,000 or 100% of average compensation for highest 3 consecutive years
Lesser of $290,000 or 100% of average compensation for highest three consecutive years
Defined contribution plan limits [qualified plans, 403(b) plans, SEP, and SIMPLE plans]
2025
2026
Annual addition limit per participant (employer contributions; employee pre-tax, after-tax, and Roth contributions; and forfeitures) (does not apply to SIMPLE IRA plans)
Lesser of $70,000 or 100% (25% for SEP) of participant’s compensation
Lesser of $72,000 or 100% (25% for SEP) of participant’s compensation
Maximum tax-deductible employer contribution [not applicable to 403(b) plans]
25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans
25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans
Pension-linked emergency savings accounts (maximum amount attributable to employee deferrals)
$2,500
$2,600
3 For self-employed individuals, compensation generally means earned income. This means that, for qualified plans, deductible contributions for a self-employed individual are limited to 20% of net earnings from self-employment (net profits minus self-employment tax deduction), and special rules apply in calculating the annual additions limit.
Compensation limits/thresholds
Retirement plan compensation limits
2025
2026
Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans and SEPs)
$350,000
$360,000
Compensation threshold used to determine a highly compensated employee
$160,000 (when 2025 is the look-back year)
$160,000 (when 2026 is the look-back year)
Compensation threshold used to determine a key employee in a top-heavy plan
$1 for more-than-5% owners, $230,000 for officers, $150,000 for more-than-1% owners
“$1 for more-than-5% owners $235,000 for officers $150,000 for more-than-1% owners”
Compensation threshold used to determine a qualifying employee under a SIMPLE plan
$5,000
$5,000
Compensation threshold used to determine a qualifying employee under a SEP plan
$750
$800
Traditional deductible IRA income limits – Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers covered by an employer-sponsored plan and filing as:
2025
2026
Single
$79,000 – $89,000
$81,000 – $91,000
Married filing jointly
$126,000 – $146,000
$129,000 – $149,000
Married filing separately
$0 – $10,000
$0 – $10,000
Traditional deductible IRA income limits – Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers not covered by an employer-sponsored retirement plan but filing a:
2025
2026
Joint return with a spouse who is covered by an employer-sponsored retirement plan
$236,000 – $246,000
$242,000 – $252,000
Roth IRA compensation limits – Income phase-out range for determining ability to fund Roth IRA for taxpayers filing as:
2025
2026
Single
$150,000 – $165,000
$153,000 – $168,000
Married filing jointly
$236,000 – $246,000
$242,000 – $252,000
Married filing separately
$0 – $10,000
$0 – $10,000
Qualified charitable distribution
2025
2026
Annual amount not includible in gross income
$108,000
$111,000
One-time exclusion for transfer to split-interest entity
$54,000
$55,000
Investment Planning
Maximum tax on long-term capital gains and qualified dividends
0% rate applies (taxable income thresholds)
2025
2026
Single
Up to $48,350
Up to $49,450
Married filing jointly
Up to $96,700
Up to $98,900
Married filing separately
Up to $48,350
Up to $49,450
Head of household
Up to $64,750
Up to $66,200
15% rate applies (taxable income thresholds)
2025
2026
Single
$48,350 to $533,400
$49,450 to $545,500
Married filing jointly
$96,700 to $600,050
$98,900 to $613,700
Married filing separately
$48,350 to $300,000
$49,450 to $306,850
Head of household
$64,750 to $566,700
$66,200 to $579,600
20% rate applies (taxable income thresholds)
2025
2026
Single
Over $533,400
Over $545,500
Married filing jointly
Over $600,050
Over $613,700
Married filing separately
Over $300,000
Over $306,850
Head of household
Over $566,700
Over $579,600
Unearned income Medicare contribution tax (“net investment income tax”)
Amount of tax
2025
2026
Tax percentage
3.80%
3.80%
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding:
2025
2026
Individuals
$200,000
$200,000
Married filing jointly
$250,000
$250,000
Married filing separately
$125,000
$125,000
Advisory Services are offered through MRA Advisory Group, a Registered Investment Adviser. It is general in nature that the statements herein are not a complete statement of all information necessary for making an investment decision and is not a recommendation or a solicitation to buy or sell any security. The investments and strategies mentioned may not be suitable for all investors. Past performance is no guarantee of future results. Nothing herein, nor any attachment, shall be considered to constitute (i) an offer to sell, nor a solicitation of an offer to purchase, any security, or (ii) tax or legal advice.
This website does not provide a complete statement of all information necessary for making an investment decision and is not a recommendation or a solicitation to buy or sell any security. The investments and strategies mentioned may not be suitable for all investors. Past performance is no guarantee of future results. Nothing herein, nor any attachment, shall be considered to constitute (i) an offer to sell, nor a solicitation of an offer to purchase, any security, or (ii) tax or legal advice. Consult with an Advisor of our firm to obtain specific investment recommendations related to your individual needs.
