The IRS published Rev. Proc. 2025-32 in late 2025, setting the 2026 standard deduction at $15,750 for single filers — up from $15,000 in 2025 — and indexing all seven federal income tax brackets roughly 2.7% upward. On the same day Social Security recipients learned their January 2026 checks would be 2.5% larger, the 401(k) employee deferral ceiling climbed to $24,500. If you’re filing your 2025 return by April 15, 2026, or planning contributions for the current year, these are the numbers that govern both decisions.
2026 Federal Income Tax Brackets: All Seven Rates with Indexed Thresholds
The seven marginal rates — 10%, 12%, 22%, 24%, 32%, 35%, and 37% — are unchanged by law, but the income thresholds that trigger each rate moved up approximately 2.7% from 2025 under the Rev. Proc. 2025-32 inflation adjustment. That means more of your income is taxed at lower rates compared to 2025 if your wages grew slower than 2.7%.
The 37% top rate applies to taxable income above $626,350 for single filers and $751,600 for married couples filing jointly in 2026. The 10% bracket covers the first $11,925 of taxable income for singles and $23,850 for joint filers. Every threshold between those two endpoints shifted proportionally upward.
| Deduction / Limit | 2025 | 2026 |
|---|---|---|
| Standard deduction — single | $15,000 | $15,750 |
| Standard deduction — married joint | $30,000 | $31,500 |
| Standard deduction — head of household | $22,500 | $23,625 |
| Child Tax Credit (2025 tax year, filed 2026) | $2,000 | $2,200 |
| Annual gift tax exclusion | $18,000 | $19,000 |
| Estate tax exclusion | $13.61M | $13.99M |
The Child Tax Credit for the 2025 tax year — the return you file by April 15, 2026 — rises to $2,200 per qualifying child. That $200 increase from the 2024 credit of $2,000 is the result of the inflation indexing provisions embedded in current law. Confirm phase-out thresholds at IRS.gov child tax credit.
The $24,500 401(k) Limit and Who Gets the $11,250 Super Catch-Up
The employee elective deferral limit for 401(k), 403(b), and most 457 plans rises to $24,500 in 2026, up $1,000 from $23,500 in 2025. Workers age 50 and older can layer on a standard catch-up contribution of $8,000, bringing their ceiling to $32,500.
SECURE 2.0 created a separate, higher catch-up tier for workers aged 60, 61, 62, or 63. In 2026, that “super catch-up” is $11,250 instead of the standard $8,000 — so a 62-year-old can defer up to $35,750 in a single year. The super catch-up does not apply at age 64 or older; those workers revert to the $8,000 standard catch-up.
IRA contribution limits also moved in 2026. The base limit rises to $7,500 — up from $7,000 in 2025 — and the catch-up for those 50 and older is $1,100, for a combined maximum of $8,600. That catch-up amount itself increased; it was $1,000 in 2025. Roth IRA income phase-outs are indexed separately; verify current thresholds at IRS.gov Roth IRA rules.
HSA Limits Hit $8,750 for Families in 2026; FSA Rises to $3,400
Health Savings Account contribution limits for 2026 are $4,400 for self-only coverage and $8,750 for family coverage, both up from $4,300 and $8,550 in 2025. The $1,000 HSA catch-up for account holders aged 55 and older is set by statute and does not adjust for inflation, so it remains $1,000.
The Flexible Spending Account limit rises to $3,400 in 2026, compared to $3,300 in 2025. FSA funds are use-it-or-lose-it under most plan designs (with limited rollover or grace-period exceptions), so calibrate your election carefully during open enrollment. HSA funds roll over indefinitely and can be invested — a meaningful difference for long-term health-care planning.
Social Security 2026: 2.5% COLA, $176,100 Wage Base, and the $4,018 Maximum Benefit
The SSA 2026 COLA announcement confirmed a 2.5% cost-of-living adjustment effective with January 2026 payments. The average retired-worker benefit rises to approximately $1,976 per month. The maximum monthly benefit for a worker who claims at full retirement age in 2026 is about $4,018 — achievable only by someone with 35 years of maximum-taxable earnings who waits until exactly FRA to claim.
The Social Security wage base — the ceiling on earnings subject to the 6.2% employee and 6.2% employer OASDI tax — is $176,100 in 2026. A worker earning exactly $176,100 pays $10,918.20 in Social Security tax; earnings above that threshold are exempt from OASDI but still subject to the 1.45% Medicare tax (with no cap) and the 0.9% Additional Medicare Tax above $200,000 single / $250,000 joint.
Full Retirement Age for everyone born in 1960 or later is 67. If you claim before FRA and still work, the earnings test matters: in 2026, SSA withholds $1 of benefits for every $2 you earn above $23,400. In the calendar year you reach FRA, the threshold jumps to $62,160, and the withholding rate drops to $1 per $3 above the limit. Benefits withheld under the earnings test are not lost permanently — SSA recalculates your benefit upward at FRA to credit those withheld months.
SSI federal maximums in 2026 are $967 per month for an individual and $1,450 per month for a couple. These figures reflect the 2.5% COLA applied to the 2025 base amounts.
Medicare Part B Premium Rises to $206.50 in 2026; IRMAA Starts at $106,000
The standard Medicare Part B monthly premium for 2026 is $206.50, up from $185.00 in 2025 — an increase of $21.50 per month, or $258 per year for each enrolled beneficiary. The annual Part B deductible is $257 in 2026. Most beneficiaries pay the standard premium; higher earners pay more through Income-Related Monthly Adjustment Amounts (IRMAA).
IRMAA surcharges begin when your modified adjusted gross income from two years prior (2024 MAGI determines 2026 IRMAA) exceeds $106,000 for single filers or $212,000 for married couples filing jointly. If a life-changing event — retirement, divorce, death of a spouse — reduced your income significantly in 2024 or 2025, file SSA Form SSA-44 to request a reduction in your 2026 IRMAA. Details at Medicare.gov Part B costs.
You are 62 years old, still working, and enrolled in your employer’s 401(k). Your salary is $140,000 in 2026. You want to maximize retirement savings and are deciding how to use the super catch-up provision while also weighing whether to start Social Security early.
Estate Planning in 2026: $13.99 Million Exclusion and the $19,000 Annual Gift
The federal estate and gift tax lifetime exclusion is $13.99 million per individual in 2026, up from $13.61 million in 2025. A married couple can shelter up to $27.98 million from federal estate tax using portability, provided the executor of the first spouse’s estate files a timely estate tax return electing portability — even if no tax is owed.
The annual gift tax exclusion rises to $19,000 per recipient in 2026, up from $18,000 in 2025. A married couple can give $38,000 to each recipient annually without touching their lifetime exclusion. Gifts above $19,000 per recipient per year require filing Form 709 and reduce the lifetime exclusion dollar-for-dollar, but no gift tax is actually due until cumulative taxable gifts exceed the $13.99 million threshold.
Business Mileage at 70 Cents Per Mile; April 15, 2026 Filing Deadline
The IRS standard mileage rate for business use of a personal vehicle is 70 cents per mile in 2026. A self-employed consultant who drives 15,000 business miles in 2026 can deduct $10,500 using the standard rate — no receipts for gas, insurance, or depreciation required, though the vehicle must be documented in a contemporaneous mileage log.
File your 2025 federal tax return or submit Form 4868 for an automatic extension by April 15, 2026 to avoid failure-to-file penalties *
Confirm your correct 2025 filing status (Single, MFJ, MFS, HOH, or QSS) as it determines which tax bracket thresholds and standard deduction amounts apply to your return *
Verify you have received all required income documents (W-2s, 1099s, K-1s) before filing, as the IRS matches these against your return *
Check whether you maximized 2025 IRA contributions (up to $7,000, or $8,000 if age 50+) — you can still contribute until April 15, 2026 and have it count for tax year 2025
Compare your total itemized deductions (mortgage interest, state and local taxes capped at $10,000, charitable gifts) against the 2025 standard deduction to determine which method lowers your tax bill
Review your 2025 withholding and estimated tax payments to confirm you met the safe-harbor threshold (100% of 2024 tax liability or 90% of 2025 liability) and avoid underpayment penalties
Your 2025 federal income tax return is due April 15, 2026 — today, if you’re reading this on publication day. A six-month extension (Form 4868) moves the filing deadline to October 15, 2026, but does not extend the time to pay any tax owed. Underpayment after April 15 accrues interest at the federal short-term rate plus 3 percentage points.
9 States With No Income Tax and the Federal Minimum Wage Freeze
Nine states impose no broad-based individual income tax in 2026: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire taxes only interest and dividend income at a diminishing rate that is being phased out; for most wage earners it is effectively zero. Residents of these states owe only federal income tax on ordinary income, though Washington imposes a capital gains tax on long-term gains above $270,000.
The federal minimum wage remains $7.25 per hour — unchanged since 2009. Multiple states raised their own minimums on January 1, 2026; where a state minimum exceeds the federal floor, employers must pay the higher rate. California, New York, and Washington are among the states with minimums above $16 per hour in 2026.
SSA will announce the 2027 COLA in October 2026, based on the change in the Bureau of Labor Statistics CPI-W from the third quarter of 2025 to the third quarter of 2026.
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