2026 Federal Income Tax Brackets

Single

Head of Household

Married Filing Jointly

Married Filing Separately

Standard Deductions (2026)

• Married Filing Jointly; Surviving Spouse: $32,200
• Head of Household: $24,150
• Single; Married Filing Separately: $16,100

Extra Standard Deductions

• Blind or Over 65 – MFJ/MFS: $1,650
• Blind & Over 65 – MFJ/MFS: $3,300
• Blind or Over 65 – Single/HoH: $2,050
• Blind & Over 65 – Single/HoH: $4,100
• Over 65 – Single (temporary 2025–2028): $2,000
• Over 65 – MFJ (temporary 2025–2028): $1,600
• Over 65 separate, temporary bonus deduction: $6,000

Alternative Minimum Tax (AMT) Exemptions

Itemized Deductions

• Medical Expenses: deductible above 7.5% of AGI
• State & Local Tax (SALT) deductions: capped at $40,000 (temporary through 2029)
• Mortgage Interest (post‑12/15/2017 debt): up to $750,000 indebtedness (up to $375,000 MFS)
• Mortgage Interest (pre‑12/15/2017 debt): up to $1,000,000 indebtedness (up to $500,000 MFS)

Charitable Contribution Limits

• Cash: up to 60% of AGI
• Property (limited to basis): up to 50% of AGI
• Appreciated Property: up to 30% of AGI
• For taxpayers who itemize: 0.5% AGI (special provision)

Estates & Trusts Income Tax & Kiddie Tax

• Estate Exemption Amount: $600
• Simple Trust Exemption Amount: $300
• Complex Trust Exemption Amount: $100
• Kiddie Tax Exemption Amount: $1,350

Estate & Gift Taxes

• Estate Tax Exclusion (per individual): $15,000,000
• Gift Tax Annual Exclusion: $19,000
• Max Transfer Tax Rate: 40%

Social Security

• Wage Base: $184,500

Qualified Charitable Distribution (QCD)

• From IRA: up to $111,000 per individual (can reduce RMD)

Mileage Deductions (2025 rates; 2026 to be updated by IRS)

• Business: $0.70 per mile
• Medical & Moving: $0.21 per mile
• Charitable: $0.14 per mile

Note: The IRS will release 2026 standard mileage rates in late December 2025; update when available.

Retirement Plans

IRA & Roth Contribution Limits

• Under age 50: $7,500
• Age 50 and over: $8,600
• Catch‑up (50+): $1,100

401(k) & 403(b) Contribution Limits

• Under age 50: $24,500
• Age 50–59 and 64+: $32,500
• Age 60–63: $35,750
• Catch‑up (50–59 & 64+): $8,000
• Catch‑up (60–63): $11,250

SEP‑IRA

The lesser of 25% of compensation or $72,000.

SIMPLE Plans

• Under age 50: $17,000
• Age 50–59 and 64+: $21,000
• Ages 60–63: $22,250
• Catch‑up (50–59 & 64+): $4,000
• Catch‑up (60–63): $5,250

IRA Deduction Phase‑outs (Modified AGI)

• Married Filing Jointly: $129,000–$149,000
• Single; Head of Household: $81,000–$91,000
• Spousal IRA: $242,000–$252,000

Roth Contribution Eligibility (AGI)

• Married Filing Jointly: $242,000–$252,000
• Single: $153,000–$168,000

Health Savings Accounts (HSA)

• Single: $4,400
• Family: $8,750
• Catch‑up (55+): $1,000

Note: Employees earning >$145,000 in the prior year must make 401(k) catch‑ups on a Roth basis.

Affordable Care Act (ACA) Taxes

Net Investment Income Tax (NIIT)

Additional 3.8% on net investment income above thresholds.

Additional Medicare Tax (0.9%)

Applies to earned income above thresholds.

Minimum QBI deduction $400 for taxpayers who materially participate and have ≥ $1,000 of QBI.

Education

529 Plan Contributions (annual exclusion per recipient)

• Individual: $19,000
• Married: $38,000

529 Superfunding (5‑year election)

• Individual: $95,000
• Joint: $190,000

Education Credits

• American Opportunity Credit: up to $2,500*
• Lifetime Learning Credit: up to 20% of the first $10,000 of qualified expenses*

Other Education Provisions

• Coverdell Education Savings Account contribution: $2,000
• Student loan interest deduction: up to $2,500
• K‑12 Qualified Education Expenses: $20,000

*Both credits phase out for MAGI between $80,000–$90,000 (single) and $160,000–$180,000 (joint).

Child Tax Credit

• Credit per child: $2,200
• Qualifying dependent tax credit: $500 (nonrefundable)
• Phase‑out begins (Single): $200,000 of MAGI
• Phase‑out begins (Married Filing Jointly): $400,000 of MAGI
• Maximum refundable amount: $1,700

Medicare IRMAA (2026 Premiums)

Determined by your 2024 Modified Adjusted Gross Income (MAGI).

Long‑Term Capital Gains Rates

• 0%: taxable income below $49,450 (single/married filing separately), $98,900 (joint), $66,200 (head of household), $3,300 (estates/trusts)
• 15%: at/above $49,451 (single/married filing separately), $98,901 (joint), $66,201 (head of household), $3,301 (estates/trusts)
• 20%: at/above $545,501 (single), $613,701 (joint), $579,601 (head of household), $306,851 (married filing separately), $16,251 (estates/trusts)
• Collectibles (coins, art, antiques): 28%
• Unrecaptured Section 1250 gain (real estate): 25%

Holding period: generally >1 year for long‑term treatment. Net capital losses may offset up to $3,000 of ordinary income annually; excess carries forward.

Required Minimum Distributions (RMDs)

Formula: Prior year (Dec 31) account balance ÷ life expectancy factor.

Example: $1,000,000 ÷ 26.5 (age 73) = $37,735.85

Uniform Lifetime Table (selected factors)

Use the Uniform Lifetime Table unless your sole beneficiary for the entire year is your spouse who is more than 10 years younger; in that case, use the Joint Life Expectancy Table.

Additional Tax Information to Know (2026)

One Big Beautiful Bill Act (OBBB)

• Top individual rate (37%) made permanent.
• Temporary senior deduction: $6,000 (2025–2028); phases out at MAGI $75,000 (single) / $150,000 (MFJ); in addition to the over‑65/blind deduction.
• QSBS (Section 1202) enhancements for post‑July 4, 2025 shares: tiered gain exclusions based on holding periods (3–5+ years); per‑taxpayer gain cap raised to $15M (inflation‑adjusted from 2027); asset threshold increased to $75M (inflation‑adjusted).
• Child tax credit: increased to $2,200 and $500 nonrefundable credit for other dependents; income thresholds increased.
• 529 Plan expansion: broader K‑12 qualified expenses (fees, textbooks, tutoring) with a $20,000 limit in 2026; more workforce training programs now qualified.
• AMT reforms: exemptions made permanent; phase‑out limits reduced to 2018 levels (notable for ISO holders).
• No Tax on Tips deduction: up to $25,000; phase‑out begins at MAGI $150K (Single) / $300K (MFJ); not available for MFS; requires W‑2 designation; self‑employed in SSTB under §199A not eligible.

Business Tax Changes

• Bonus depreciation: 100% for qualified property acquired and placed in service after January 19, 2025.
• R&D expensing: domestic R&D immediately deductible for tax years beginning after December 31, 2024.
• Interest expense limitation (§163(j)): deduction limited to 30% of ATI; ATI calculation reverts to EBITDA for tax years beginning after December 31, 2024.

Vehicle & Home‑Related Tax Benefits

• Auto Loan Interest Deduction: up to $10,000 for vehicles with final assembly in the U.S. purchased after December 31, 2024; MAGI ≤ $100K (Single) / ≤ $200K (MFJ); available through 2028.
• Clean Vehicle Credits (EV): repealed for vehicles acquired after September 30, 2025 (new, used, and commercial credits).
• Residential energy credits: generally terminated after 2025.

Sources & Notes

• IRS tax inflation adjustments for tax year 2026; OBBB amendments (IRS newsroom, Oct 9, 2025).
• 2026 Medicare Parts B premiums & deductibles (CMS, Nov 25, 2025).
• Capital gains rate overview (Investopedia, Oct 16, 2025).
• 529 plan contribution guidance (Fidelity, Feb 28, 2025); K‑12 expansion references (Savingforcollege, Jul 24, 2025).