The IRS has released the official inflation adjustments for the 2026 tax year, along with the previously published limits for 2025. For high-earning professionals, especially those focused on building long-term wealth and maximizing tax-advantaged saving opportunities, these annual updates play a meaningful role in year-end planning, cash-flow strategy, and retirement contributions.
This report outlines the key IRS thresholds for 2025 and 2026, including updated retirement plan limits, tax brackets, income phaseouts, and major adjustments affecting both individuals and households. The goal is to provide a clear, structured reference you can use as you prepare for the upcoming year.
All figures in this guide reflect IRS notices and related guidance available as of November 15, 2025 and may be subject to change.
Standard Deduction
The standard deduction is a specific dollar amount that reduces the amount of income you have to pay taxes on. You can either take the standard deduction or itemize it on your tax return but you cannot do both. It is easier to take the standard deduction. However, if your standard deduction is less than your itemized deductions, then you will probably itemize and save money.
2026 Standard Deduction
- Single or Married-Filing-Separately: $16,100
- Married-Filing-Jointly (and Surviving Spouse): $32,200
- Head of Household: $24,150
2025 Standard Deduction
- Single or Married-Filing-Separately: $15,000
- Married-Filing-Jointly (and Surviving Spouse): $30,000
- Head of Household: $22,500
Planning Consideration: Some households review their year-end charitable giving, medical expenses, and mortgage interest to determine whether itemizing or taking the standard deduction is more beneficial.
Standard Deduction: 2026, 2025, 2024, 2023, 2022
| Filing Status | 2026 | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
| Single | $16,100 | $15,750 | $14,600 | $13,850 | $12,950 |
| Married, filing jointly | $32,200 | $31,500 | $29,200 | $27,700 | $25,900 |
| Married, filing separately | $16,100 | $15,750 | $14,600 | $13,850 | $12,950 |
| Head of household | $24,150 | $23,625 | $21,900 | $20,800 | $19,400 |
Tax Brackets 2025 & 2026
There are 7 federal tax brackets for both 2025 and 2026. Your tax rate depends on your income and filing status.
Tax Brackets 2026
| Tax Rate | For Single Filers | For Married Individuals Filing Joint Returns | For Heads of Households |
|---|---|---|---|
| 10% | $0 to $12,400 | $0 to $24,800 | $0 to $17,700 |
| 12% | $12,401 to $50,400 | $24,801 to $100,800 | $17,701 to $67,450 |
| 22% | $50,401 to $105,700 | $100,801 to $211,400 | $67,451 to $105,700 |
| 24% | $105,701 to $201,775 | $211,401 to $403,550 | $105,701 to $201,775 |
| 32% | $201,776 to $256,225 | $403,551 to $512,450 | $201,776 to $256,200 |
| 35% | $256,226 to $640,600 | $512,451 to $768,700 | $256,201 to $640,600 |
| 37% | $640,601 or more | $768,701 or more | $640,601 or more |
Tax Brackets 2025
| Tax Rate | Single | Married (Filing Jointly) | Head of Household |
|---|---|---|---|
| 10% | $0 to $11,925 | $0 to $23,850 | $0 to $17,000 |
| 12% | $11,926 to $48,475 | $23,851 to $96,950 | $17,001 to $64,850 |
| 22% | $48,476 to $103,350 | $96,951 to $206,700 | $64,851 to $103,350 |
| 24% | $103,351 to $197,300 | $206,701 to $394,600 | $103,351 to $197,300 |
| 32% | $197,301 to $250,525 | $394,601 to $501,050 | $197,301 to $250,500 |
| 35% | $250,526 to $626,350 | $501,051 to $751,600 | $250,501 to $626,350 |
| 37% | $626,351 or more | $751,601 or more | $626,351 or more |
Planning Consideration: Some individuals review year-end income timing, bonuses, and retirement contributions to understand their marginal bracket exposure.
How can I get into a lower tax bracket and reduce my taxes?
The two common ways to reduce your taxes are credits and deductions. Tax credits will reduce the amount of tax you owe but they won’t reduce your overall tax bracket. Tax deductions reduce how much of your income is subject to federal taxes. Make sure that you take all of the deductions you can to try to reduce your tax bracket.
401(k), 403(b), and 457(b) Contribution Limits
These limits determine how much individuals can contribute to employer-sponsored retirement plans.
2025 Limits
- Employee contribution: $23,500
- Catch-up contribution (age 50+): $7,500
- Special catch-up (ages 60–63): $11,250
- Total annual additions limit:
– Under 50: $70,000
– Age 50+: $77,500
– Ages 60–63: $81,250
2026 Limits
- Employee contribution: $24,500
- Catch-up contribution (age 50+): $8,000
- Special catch-up (ages 60–63): $11,250
- Total annual additions limit:
– Under 50: $72,000
– Age 50+: $80,000
– Ages 60–63: $83,500
Planning Consideration: Individuals who aim to reach the annual maximum often review their payroll deferral rate early in the year to avoid under- or over-contributing.
| Category | 2026 | 2025 | 2024 |
| Maximum employee elective deferral (age 49 or younger) | $24,500 | $23,500 | $23,000 |
| Employee catch-up contribution (age 50+) | $8,000 | $7,500 | $7,500 |
| Employee catch-up contribution (age 60–63) (Super Catch-Up) | $11,250 | $11,250 | $7,500 |
| Total contribution (< age 50) | $72,000 | $70,000 | $69,000 |
| Total contribution (age 50+) | $80,000 | $77,500 | $76,500 |
| Total contribution (age 60–63) | $83,500 | $81,250 | $76,500 |
Traditional IRA and Roth IRA Contribution Limits and Income Ranges
2025 IRA Limits
- Contribution limit: $7,000
- Catch-up (50+): $1,000
2025 Roth IRA Income Phaseouts
- Single: $150,000–$165,000
- Married filing jointly: $236,000–$246,000
2026 IRA Limits
- Contribution limit: $7,500
- Catch-up (50+): $1,100
2026 Roth IRA Income Phaseouts
- Single: $153,000–$168,000
- Married filing jointly: $242,000–$252,000
Planning Consideration: Households near the top of the Roth IRA phase-out range sometimes review whether direct contributions remain permissible or whether other methods of funding a Roth account may be more suitable.
Roth IRA Income Limits 2026 & 2025
| Filing Status | MAGI (2026) | Allowed Contribution (2026) | MAGI (2025) | Allowed Contribution (2025) |
|---|---|---|---|---|
| Married filing jointly or qualifying widow(er) | < $242,000 | Up to the limit | < $236,000 | Up to the limit |
| $242,000 – $252,000 | Reduced amount | $236,000 – $246,000 | Reduced amount | |
| ≥ $252,000 | Zero | ≥ $246,000 | Zero | |
| Married filing separately (lived with spouse any time during the year) | < $10,000 | Reduced amount | < $10,000 | Reduced amount |
| ≥ $10,000 | Zero | ≥ $10,000 | Zero | |
| Single, head of household, OR married filing separately (did NOT live with spouse during the year) | < $153,000 | Up to the limit | < $150,000 | Up to the limit |
| $153,000 – $168,000 | Reduced amount | $150,000 – $165,000 | Reduced amount | |
| ≥ $168,000 | Zero | ≥ $165,000 | Zero |
SEP-IRA Contribution Limits
For 2026, SEP-IRA contribution limit increases to $72,000, reflecting the IRS’s annual inflation adjustment. As with prior years, contributions cannot exceed the lesser of 25% of the employee’s compensation or the annual dollar limit.
For 2025, the contribution limit was $70,000. This was an increase of $1,000 from 2024.
SIMPLE IRA and SIMPLE 401(k) Limits
- For 2026, the SIMPLE IRA and SIMPLE 401(k) contribution limit increases to $17,000.
- For 2026, the age 50+ catch-up amount increases to $4,000, allowing eligible participants to contribute up to $21,000.
- The SIMPLE IRA or a SIMPLE 401(k) limit was $16,500 in 2025.
Flexible Spending Account (FSA) Limits
- For 2026, the Healthcare FSA contribution limit increases to $3,400 per person.
- The maximum carryover amount also rises to $680 per person in 2026 (20% of the annual limit). This allows participants to roll over a slightly larger portion of unused FSA funds into the next plan year.
- The Healthcare FSA contribution for 2025 was $3,300 per person. This was an increase of $100 in 2024.
Health Savings Account (HSA) Limits
- For 2026, the HSA contribution limit increases to $4,400 for single coverage and $8,750 for family coverage.
- The catch-up contribution remains $1,000 for individuals age 55 or older. Married couples who both qualify must continue to deposit their respective catch-up amounts into separate HSAs.
- The HSA contribution limit in 2025 for single coverage was $4,300 and $8,550 for family coverage.
Planning Consideration: Some individuals review expected medical and dependent-care expenses to determine appropriate FSA elections during open enrollment.
Estate and Gift Tax Exemption
2026
- The estate tax exemption rises to $15 million per individual and $30 million for a married couple in 2026 under recently enacted federal tax legislation commonly referred to as the One Big Beautiful Bill Act (OBBBA).
- The estate and gift tax rate remains unchanged at 40%.
- The annual gift tax exclusion stays at $19,000 per recipient, meaning you can continue to give $19,000 per person without reducing your lifetime exemption amount.
2025
- The estate tax exemption is $13.99 million per individual and $27.98 million for a married couple.
- The estate and gift tax rate is 40% in 2025.
- The annual gift tax exclusion increases from $18,000 in 2024 to $19,000 in 2025. You can give $19,000 to as many people as you like without it affecting your lifetime estate tax exemption.
Social Security
2026
- Social Security wage base: $184,500
- COLA: 2.8%
2025
- Social Security wage base: $176,100
- COLA: 2.5%
- Maximum benefit at FRA: $4,018
Planning Consideration: Individuals who change employers mid-year occasionally review their wage base exposure to understand how payroll taxes may apply.
IRS Limits Table (2026 → 2025 → 2024)
| Item | 2026 | 2025 | 2024 | Increase (2025 → 2026) |
|---|---|---|---|---|
| 401(k), 403(b) employee contributions | $24,500 | $23,500 | $23,000 | +$1,000 |
| 401(k), 403(b) catch-up contributions for 50+ | $8,000 | $7,500 | $7,500 | +$500 |
| 401(k), 403(b) catch-up contributions for 60–63 | $11,250 | $11,250 | $7,500 | $0 |
| 401(k), 403(b), 457 plan total contribution | $72,000 | $70,000 | $69,000 | +$2,000 |
| 401(k), 403(b), 457 plan total contribution 50+ | $80,000 | $77,500 | $76,500 | +$2,500 |
| 401(k), 403(b), 457 plan total contribution 60–63 | $83,250 | $81,250 | $76,500 | +$2,000 |
| 457(b) employee contribution | $24,500 | $23,500 | $23,000 | +$1,000 |
| SIMPLE 401(k) or SIMPLE IRA employee contributions | $17,000 | $16,500 | $16,000 | +$500 |
| SIMPLE plan contributions limit at eligible employers (SECURE 2.0 110% rule) | $18,100 | $17,600 | $17,600 | +$500 |
| SIMPLE plan ages 50–59 and 64+ catch-up contributions | $4,000 | $3,500 | $3,500 | +$500 |
| SIMPLE plan ages 50–59 and 64+ catch-up at eligible employers | $3,850 | $3,850 | $3,850 | $0 |
| SIMPLE plan ages 60–63 catch-up contributions | $5,250 | $5,250 | $3,500 | $0 |
| Maximum annual additions to all defined contribution plans by the same employer (415(c)) | $72,000 | $70,000 | $69,000 | +$2,000 |
| SEP-IRA contribution limit (25% of comp, up to 415(c) limit) | $72,000 | $70,000 | $69,000 | +$2,000 |
| Highly Compensated Employee definition (HCE comp threshold) | $160,000 | $160,000 | $155,000 | $0 |
| Annual Compensation Limit (401(a)(17)) | $360,000 | $350,000 | $345,000 | +$10,000 |
| Traditional & Roth IRA contribution limit | $7,500 | $7,000 | $7,000 | +$500 |
| Traditional & Roth IRA age 50+ catch-up | $1,100 | $1,000 | $1,000 | +$100 |
| Deductible IRA income limit, single, active participant in workplace plan | $81,000 – $91,000 | $79,000 – $89,000 | $77,000 – $87,000 | +$2,000 range shift |
| Deductible IRA income limit, married, active participant in workplace retirement plan | $129,000 – $149,000 | $126,000 – $146,000 | $123,000 – $143,000 | +$3,000 range shift |
| Deductible IRA income limit, married, spouse is active participant | $242,000 – $252,000 | $236,000 – $246,000 | $230,000 – $240,000 | +$6,000 range shift |
| Roth IRA income limit, single | $153,000 – $168,000 | $150,000 – $165,000 | $146,000 – $161,000 | +$3,000 range shift |
| Roth IRA income limit, married filing jointly | $242,000 – $252,000 | $236,000 – $246,000 | $230,000 – $240,000 | +$6,000 range shift |
| Healthcare FSA contribution limit | $3,400 | $3,300 | $3,200 | +$100 |
| HSA contribution limit, single coverage | $4,400 | $4,300 | $4,150 | +$100 |
| HSA contribution limit, family coverage | $8,750 | $8,550 | $8,300 | +$200 |
| HSA age 55+ catch-up | $1,000 | $1,000 | $1,000 | $0 |
Partner with District Capital to maximize your money in 2026
A new year calls for a new opportunity to take a look at your current tax planning and investment strategy. If you want to maximize your money in 2026, schedule a free discovery call with one of our fiduciary financial advisors today!
For more information about:
– 2026 IRS Limits, please refer to IRS Notice 2025-32
– 2025 IRS Limits, please refer to IRS Notice 2024-80.
– 2024 IRS Limits, please refer to IRS Notice 2023-75.
Frequently Asked Questions
1. Why do IRS contribution limits change each year?
The IRS adjusts many tax and retirement-related limits annually to reflect inflation and cost-of-living changes. These adjustments help ensure that contribution caps and tax brackets remain aligned with economic conditions.
2. Can I contribute to both a 401(k) and an IRA in the same year?
Yes. The contribution limits are separate. IRA deductibility and Roth IRA eligibility may depend on income and participation in workplace retirement plans.
3. Do catch-up contributions apply to all retirement accounts?
Individuals age 50 or older are generally eligible for catch-up contributions. Certain workplace plans also offer an enhanced catch-up provision for individuals ages 60–63.
4. What happens if I accidentally overcontribute to my 401(k) or IRA?
Excess contributions can typically be corrected by removing the excess amount before the tax filing deadline. The IRS may assess taxes or penalties on uncorrected excess contributions.
5. Are Roth 401(k) limits different from traditional 401(k) limits?
No. The annual 401(k) contribution limit applies to the combined total of traditional and Roth 401(k) contributions.
6. Do employer contributions count toward my annual 401(k) limit?
Employer contributions do not count toward the employee contribution limit, but they do count toward the total annual additions limit for the plan year.
7. What income is used to determine IRA and Roth IRA eligibility?
The IRS uses modified adjusted gross income (MAGI) to determine whether an individual can make Roth IRA contributions or deduct traditional IRA contributions.
8. Are HSA contributions allowed with any health insurance plan?
No. HSA contributions are only allowed if an individual is enrolled in a high-deductible health plan (HDHP) that meets IRS criteria for minimum deductibles and maximum out-of-pocket limits.
9. Are 457(b) plan contributions separate from 401(k) limits?
Governmental 457(b) plans have contribution limits that are separate from 401(k) and 403(b) plans. Some individuals participating in both types of plans may be able to contribute to each, subject to plan rules.
10. Do Social Security wage base increases affect take-home pay?
Once annual wages exceed the Social Security wage base, Social Security tax no longer applies. Individuals earning above the wage base may see higher take-home pay later in the year once this threshold is reached.
Alvin Carlos, CFP®, CFA is a fee-only financial planner, in Washington, D.C. He has a Master’s degree in International Relations from SAIS-Johns Hopkins. Alvin is the founder of District Capital, a financial planning firm designed to help professionals in their 30s and 40s maximize their money and retire by 55, through holistic financial planning and research-driven investing. Schedule a free discovery call today.
