IRS 2026 Inflation Adjustments: Tax Brackets, Contribution Limits, and Phase-Outs
Figures verified against Rev. Proc. 2025-32, Notice 2025-67, Rev. Proc. 2025-19, ssa.gov and cms.gov on 2026-07-29. Every dollar amount on this page is traceable to a document listed in the Sources section at the end. Where a figure is labelled with a year other than 2026, that is a deliberate historical comparison, not a current limit.
The IRS publishes each year's inflation adjustments in the autumn before the tax year they apply to: the 2026 income-tax figures came out in Rev. Proc. 2025-32 on October 9, 2025, and the 2026 retirement-plan figures in Notice 2025-67. They move tax brackets, contribution limits, phase-out ranges, and dozens of other numbers. Miss them and you could overpay taxes or miss contribution opportunities. Here's a reference guide to the key 2026 figures.
2026 Federal Income Tax Brackets
The seven rates are unchanged (10%, 12%, 22%, 24%, 32%, 35%, 37%) and were made permanent by the One, Big, Beautiful Bill; the income thresholds where each rate starts are adjusted annually for inflation. The "Federal Tax" column below is the base amount Rev. Proc. 2025-32 prints for each bracket — the tax on all income below that bracket's floor.
2026 Tax Brackets: Single Filers
| Tax Rate | Taxable Income Range | Federal Tax |
|---|---|---|
| 10% | $0 - $12,400 | Up to $1,240 |
| 12% | $12,401 - $50,400 | $1,240 + 12% of excess |
| 22% | $50,401 - $105,700 | $5,800 + 22% of excess |
| 24% | $105,701 - $201,775 | $17,966 + 24% of excess |
| 32% | $201,776 - $256,225 | $41,024 + 32% of excess |
| 35% | $256,226 - $640,600 | $58,448 + 35% of excess |
| 37% | $640,601+ | $192,979.25 + 37% of excess |
Takeaway: A single filer with $100,000 of taxable income pays 22% only on the slice from $50,401 to $100,000, NOT 22% on all $100,000. The total is $5,800 + 22% × $49,600 = $16,712, an effective rate of 16.7%.
2026 Tax Brackets: Married Filing Jointly (MFJ)
| Tax Rate | Taxable Income Range | Federal Tax |
|---|---|---|
| 10% | $0 - $24,800 | Up to $2,480 |
| 12% | $24,801 - $100,800 | $2,480 + 12% of excess |
| 22% | $100,801 - $211,400 | $11,600 + 22% of excess |
| 24% | $211,401 - $403,550 | $35,932 + 24% of excess |
| 32% | $403,551 - $512,450 | $82,048 + 32% of excess |
| 35% | $512,451 - $768,700 | $116,896 + 35% of excess |
| 37% | $768,701+ | $206,583.50 + 37% of excess |
Takeaway: The MFJ thresholds are exactly double the single thresholds through the 35% bracket — $24,800 = 2 × $12,400, $512,450 = 2 × $256,225, and so on. The doubling stops at the top: the 37% bracket starts at $768,700 for couples, only about 1.2× the $640,600 single threshold rather than twice it. That single break in the pattern is where the "marriage penalty" still bites.
2026 Tax Brackets: Head of Household
| Tax Rate | Taxable Income Range | Federal Tax |
|---|---|---|
| 10% | $0 - $17,700 | Up to $1,770 |
| 12% | $17,701 - $67,450 | $1,770 + 12% of excess |
| 22% | $67,451 - $105,700 | $7,740 + 22% of excess |
| 24% | $105,701 - $201,750 | $16,155 + 24% of excess |
| 32% | $201,751 - $256,200 | $39,207 + 32% of excess |
| 35% | $256,201 - $640,600 | $56,631 + 35% of excess |
| 37% | $640,601+ | $191,171 + 37% of excess |
Takeaway: Head of Household helps single parents in the two lowest brackets and almost nowhere else. The 10% band runs to $17,700 (vs $12,400 single) and the 12% band to $67,450 (vs $50,400), but from the 24% bracket up HOH and Single are within $25 of each other, and the 37% threshold is identical at $640,600. A qualifying surviving spouse does not use this table — they use the MFJ table above.
2026 Standard Deduction Amounts
| Filing Status | 2026 Standard Deduction |
|---|---|
| Single | $16,100 |
| Married Filing Jointly | $32,200 |
| Married Filing Separately | $16,100 |
| Head of Household | $24,150 |
| Surviving Spouse | $32,200 |
| Age 65+ or blind (additional, per qualifying status) | |
| Single or HOH | +$2,050 |
| MFJ (one spouse 65+) | +$1,650 |
| MFJ (both spouses 65+) | +$3,300 |
The additional amount under §63(f) is $1,650, rising to $2,050 for someone who is unmarried and not a surviving spouse. It applies once for age 65+ and again for blindness, so a single blind filer over 65 adds $4,100.
Takeaway: The standard deduction rose about 2.2% for 2026 — from $15,750 to $16,100 for single filers and from $31,500 to $32,200 for joint filers. Separately, the One, Big, Beautiful Bill created a deduction for taxpayers aged 65 and over that is not part of the §63(f) additions above and is not an inflation-adjusted item in Rev. Proc. 2025-32; do not count it twice.
2026 Capital Gains Tax Rates
Long-term capital gains (assets held over 1 year) are taxed at preferential rates. The breakpoints below are taxable-income levels, not gain amounts.
Long-Term Capital Gains Brackets
| Rate | Single | MFJ | HOH |
|---|---|---|---|
| 0% | $0 - $49,450 | $0 - $98,900 | $0 - $66,200 |
| 15% | $49,451 - $545,500 | $98,901 - $613,700 | $66,201 - $579,600 |
| 20% | $545,501+ | $613,701+ | $579,601+ |
Married filing separately: 0% to $49,450, 15% to $306,850, 20% above. Estates and trusts: 0% to $3,300, 15% to $16,250, 20% above.
Takeaway: A married couple with $200,000 of taxable income, all of it long-term capital gain, pays 0% on the first $98,900 and 15% on the remaining $101,100 — $15,165 in total. The 20% rate does not start until taxable income passes $613,700.
Net Investment Income Tax (NIIT): Additionally, if your modified AGI exceeds $200,000 (single or HOH), $250,000 (MFJ), or $125,000 (MFS), you pay 3.8% on the lesser of your net investment income or the excess over that threshold. This is ON TOP of the capital gains rate. These thresholds are set by statute and have never been indexed for inflation.
2026 Retirement Contribution Limits
401(k), 403(b), and 457 Limits
| Category | 2026 Limit |
|---|---|
| Annual employee deferral (§402(g)) | $24,500 |
| Catch-up, ages 50-59 and 64+ | +$8,000 |
| Catch-up, ages 60-63 (SECURE 2.0)* | +$11,250 |
| Maximum employee deferral at ages 50-59 or 64+ | $32,500 |
| Maximum employee deferral at ages 60-63 | $35,750 |
| All-sources plan limit, employee + employer (§415(c)) | $72,000 |
| Roth catch-up wage threshold (§414(v)(7)) | $150,000 |
*The ages 60-63 catch-up replaces the age-50 catch-up rather than adding to it, which is why the two maximums above are alternatives and not a sum. It remains $11,250 for 2026, unchanged from 2025. At age 64 the catch-up reverts to $8,000. Separately, if your prior-year wages from that employer exceeded $150,000, your catch-up contributions must be designated Roth.
Takeaway: A 61-year-old can defer $24,500 + $11,250 = $35,750, about 46% more than the $24,500 base limit. The window lasts only four years (ages 60-63); at 64 the maximum drops to $32,500.
Traditional and Roth IRA Limits
| Category | 2026 Limit |
|---|---|
| Annual contribution (under 50) | $7,500 |
| Annual contribution (age 50+) | $8,600 |
| Roth IRA income phase-out (single, HOH) | $153,000 - $168,000 |
| Roth IRA income phase-out (MFJ) | $242,000 - $252,000 |
| Roth IRA income phase-out (MFS living with spouse) | $0 - $10,000 |
| Traditional IRA deduction phase-out (single/HOH covered by a workplace plan)* | $81,000 - $91,000 |
| Traditional IRA deduction phase-out (MFJ, the contributing spouse is covered)* | $129,000 - $149,000 |
| Traditional IRA deduction phase-out (contributor not covered, spouse is)* | $242,000 - $252,000 |
*The traditional-IRA deduction is only limited if you or your spouse has access to a workplace retirement plan. Which of you is covered decides which band applies — the two MFJ rows are different rules, not alternative estimates of the same one.
The band widths are structural rather than annual and are worth using as a sanity check on any figure you see quoted: $15,000 for the single Roth range, $10,000 for the MFJ Roth range, $10,000 for the single deduction range, $20,000 for the MFJ deduction range, $10,000 for the spousal range.
Takeaway: If your modified AGI is above $168,000 (single or HOH) or $252,000 (MFJ), you cannot contribute directly to a Roth IRA at all. The "backdoor Roth" (contribute to a traditional IRA, then convert) remains available, and is cleanest if you hold no other pre-tax traditional IRA balances.
Employer Sponsored Plan Limits
| Plan Type | 2026 Limit |
|---|---|
| SEP-IRA | Lesser of 25% of compensation or $72,000 |
| Solo 401(k) | $24,500 employee deferral plus employer contribution, capped at $72,000 from all sources (catch-ups sit outside that cap) |
| SIMPLE IRA / SIMPLE 401(k) deferral | $17,000 (or $18,100 for certain plans under §408(p)(2)(E)(i)(I)-(II)) |
| SIMPLE catch-up, age 50+ | +$4,000 (+$5,250 at ages 60-63) |
| SIMPLE employer contribution | 3% matching or 2% non-elective |
| HSA, self-only coverage | $4,400 |
| HSA, family coverage | $8,750 |
To contribute to an HSA in 2026 your health plan must have a deductible of at least $1,700 (self-only) or $3,400 (family), with out-of-pocket maximums no higher than $8,500 and $17,000 respectively.
Takeaway: Self-employed people can save far more in a SEP-IRA or Solo 401(k) than an employee can defer into a 401(k), because the employer contribution counts toward the same $72,000 §415(c) ceiling rather than the $24,500 deferral limit.
2026 Earned Income Tax Credit (EITC)
The EITC is a refundable credit for low- and moderate-income working people. Both the credit and the income at which it disappears are adjusted annually.
| Qualifying children | 2026 Maximum Credit | Credit gone at (MFJ) | Credit gone at (all other statuses) |
|---|---|---|---|
| None | $664 | $26,820 | $19,540 |
| One | $4,427 | $58,863 | $51,593 |
| Two | $7,316 | $65,899 | $58,629 |
| Three or more | $8,231 | $70,244 | $62,974 |
The credit reaches its maximum at $8,680 of earned income with no children, $13,020 with one child, and $18,290 with two or more. It then holds flat until phase-out begins: $18,140 (MFJ, no children) or $31,160 (MFJ, with children), and $10,860 or $23,890 for every other filing status.
Takeaway: A married couple with three or more children can claim up to $8,231 and keeps some credit until their income reaches $70,244. For any other filing status the same family loses the credit at $62,974. Many eligible households never claim it.
2026 Child Tax Credit
| Item | 2026 Amount |
|---|---|
| Credit per qualifying child (under 17) | $2,200 |
| Refundable portion (Additional Child Tax Credit) | Up to $1,700 |
| Earned income required for the refundable portion | $2,500 |
| Social Security number valid for employment | Required for the filer and each child |
| Income phase-out begins (single, HOH, MFS) | $200,000 |
| Income phase-out begins (MFJ) | $400,000 |
| Reduction above the threshold | $50 per $1,000 |
| Credit for Other Dependents | $500 per dependent, same thresholds |
Takeaway: The phase-out starts far lower than most people assume — $200,000 for a single filer, $400,000 for a couple. A couple with two children and $450,000 of income loses $50 × [($450,000 - $400,000) / $1,000] = $2,500 of their $4,400, leaving $1,900. An ITIN is no longer enough: the filer and every child need an SSN valid for employment.
2026 Alternative Minimum Tax (AMT)
The AMT is a parallel calculation for high earners. If your AMT exceeds your regular income tax, you pay the higher amount.
| Category | 2026 Amount |
|---|---|
| AMT exemption (unmarried, other than a surviving spouse) | $90,100 |
| AMT exemption (MFJ or surviving spouse) | $140,200 |
| Exemption phase-out begins (single) | $500,000 |
| Exemption phase-out begins (MFJ) | $1,000,000 |
| Exemption fully eliminated (single) | $680,200 |
| Exemption fully eliminated (MFJ) | $1,280,400 |
| AMT rate | 26%, rising to 28% on excess AMTI above $244,500 ($122,250 if MFS) |
The exemption now phases out at 50 cents per dollar of AMTI above the threshold, which is why it runs out exactly two exemptions past the start: $500,000 + 2 × $90,100 = $680,200, and $1,000,000 + 2 × $140,200 = $1,280,400.
Takeaway: AMT is a concern mainly for people with large amounts of AMT preference items — incentive stock option exercises, accelerated depreciation, private-activity bond interest — rather than for high income alone. For most filers it does not apply.
2026 Income Phase-Outs and Limitations
Itemized Deductions: the Pease Limitation No Longer Exists
The old §68 "Pease" limitation, which cut itemized deductions by 3% of income above a threshold, was suspended for 2018 through 2025, and the One, Big, Beautiful Bill made that elimination permanent. There is no Pease threshold for 2026. In its place, OBBB limits the tax benefit of itemized deductions for taxpayers in the top 37% bracket — the bracket that starts at $640,600 (single) or $768,700 (MFJ). Below the 37% bracket, no such limitation applies.
Medical Expense Deduction Threshold
Only medical expenses exceeding 7.5% of AGI are deductible. This threshold is permanent and has not changed since 2013.
Passive Activity Loss Limitation
If you actively participate in rental real estate, you may deduct up to $25,000 of otherwise-passive loss against non-passive income — $12,500 if you file separately and lived apart from your spouse all year. The allowance phases out over modified AGI:
- Full $25,000 if MAGI is $100,000 or less ($50,000 MFS)
- Between $100,000 and $150,000, the allowance is 50% of the difference between $150,000 and your MAGI — at $125,000 of MAGI that is $12,500
- Nothing at all at $150,000 or above ($75,000 MFS)
These amounts are fixed by statute and are not adjusted for inflation, so they do not move from year to year.
2026 Qualified Business Income (QBI) Deduction
The QBI deduction allows up to 20% of qualified business income to be deducted:
| Item | 2026 Amount |
|---|---|
| Deduction percentage | 20% of QBI |
| Threshold amount (MFJ) | $403,500 |
| Threshold amount (MFS) | $201,775 |
| Threshold amount (all other returns) | $201,750 |
| Top of the phase-in range (MFJ) | $553,500 |
| Top of the phase-in range (MFS) | $276,775 |
| Top of the phase-in range (all other returns) | $276,750 |
| W-2 wage limitation | 50% of W-2 wages paid |
| Minimum deduction, new for 2026 | $400, if you have at least $1,000 of QBI |
Below the threshold you get the full 20% with no further tests. Above it, two limitations phase in across the range — the W-2 wage and capital limitation under §199A(b)(3)(B), and, for a Specified Service Trade or Business (SSTB), the loss of the deduction entirely under §199A(d)(3)(A). The range is $150,000 wide for joint returns and $75,000 for everyone else.
Takeaway: Business owners under the threshold get the full 20% deduction with no wage test at all. Above it, an SSTB owner — doctor, lawyer, consultant, financial adviser — loses the deduction completely by the top of the range, while a non-SSTB owner keeps whatever the W-2 wage test supports. The $400 minimum deduction is new for 2026 and is itself indexed from 2027.
2026 Gift Tax and Estate Tax Exemptions
| Category | 2026 Amount |
|---|---|
| Annual gift tax exclusion (per recipient) | $19,000 |
| Annual exclusion for gifts to a non-citizen spouse | $194,000 |
| Basic exclusion amount, estate and lifetime gifts (per person) | $15,000,000 |
| Combined for a married couple | $30,000,000 |
| Generation-skipping transfer (GST) tax exemption | $15,000,000 |
| Top estate tax rate | 40% |
The $15,000,000 basic exclusion amount was set by the One, Big, Beautiful Bill and will first be adjusted for inflation for 2027. The annual gift exclusion is unchanged from 2025 at $19,000.
Takeaway: You can give $19,000 per recipient per year, to as many people as you like, without touching your lifetime exclusion. At $15,000,000 per person — $30,000,000 for a couple — very few families owe federal estate tax.
2026 Self-Employment Tax Threshold and Rate
| Category | 2026 Amount |
|---|---|
| Self-employment income filing threshold (Schedule C) | $400 |
| SE tax rate | 15.3% (12.4% Social Security + 2.9% Medicare) |
| Social Security wage base | $184,500 |
| Medicare tax (no cap) | 2.9% on all net SE income |
| Additional Medicare tax (high earners) | 0.9% on wages/SE income over $200,000 (single) / $250,000 (MFJ) |
Takeaway: Self-employed people owe SE tax on net profit from $400 up. The 12.4% Social Security portion stops at $184,500 of earnings — $22,878 of tax at the cap, against $11,439 each for an employee and their employer — but the 2.9% Medicare portion applies to every dollar, with another 0.9% above $200,000 / $250,000.
2026 Medicare Premium Thresholds (IRMAA)
Income-Related Monthly Adjustment Amounts are based on the modified AGI you reported two years earlier, so 2026 premiums are set by your 2024 return.
| 2024 MAGI (single) | 2024 MAGI (MFJ) | Part B premium (2026) | Part D surcharge (2026) |
|---|---|---|---|
| $109,000 or less | $218,000 or less | $202.90 | $0.00 |
| $109,001 - $137,000 | $218,001 - $274,000 | $284.10 | $14.50 |
| $137,001 - $171,000 | $274,001 - $342,000 | $405.80 | $37.50 |
| $171,001 - $205,000 | $342,001 - $410,000 | $527.50 | $60.40 |
| $205,001 - $499,999 | $410,001 - $749,999 | $649.20 | $83.30 |
| $500,000 or more | $750,000 or more | $689.90 | $91.00 |
The standard Part B premium is $202.90 a month for 2026 and the annual Part B deductible is $283. Married filers who lived with their spouse but filed separately use a separate two-step schedule: $649.20 above $109,000 and $689.90 at $391,000 or more.
Takeaway: IRMAA is a cliff, not a slope. One dollar of 2024 MAGI above $109,000 moves a single filer from $202.90 to $284.10 a month — $81.20 more, or $974.40 across the year — plus a $14.50 monthly Part D surcharge, another $174. Plan Roth conversions, capital gains, and IRA withdrawals with the two-year lookback in mind.
2026 Social Security Thresholds
| Category | 2026 Amount |
|---|---|
| Earnings test limit, years before the year you reach FRA | $24,480/year |
| Withholding below FRA | $1 of benefits withheld per $2 of earnings over the limit |
| Earnings test limit, the year you reach FRA | $65,160/year |
| Withholding in your FRA year | $1 per $3 over the limit, counting only months before FRA |
| Full Retirement Age (born 1960 or later) | 67 |
| COLA effective with January 2026 payments | 2.8% |
| Average retired-worker benefit after the COLA | $2,072/month |
Takeaway: If you claim before Full Retirement Age and earn more than $24,480, benefits are withheld at $1 for every $2 above the limit. In the year you reach FRA the limit jumps to $65,160 and the rate softens to $1 per $3. From the month you reach FRA, earnings stop mattering entirely — and withheld benefits are not lost, they are restored through a permanently higher monthly benefit afterwards.
Key Takeaways
The 2026 brackets and the standard deduction moved up about 2.2%. The 37% bracket now starts at $640,600 (single) and $768,700 (MFJ); the standard deduction is $16,100 and $32,200.
The 401(k) limit is $24,500 for 2026 (up from $23,500 in 2025), plus an $8,000 catch-up at 50+ or an $11,250 catch-up at ages 60-63 — the two are alternatives, not additive.
The IRA limit is $7,500 ($8,600 at 50+), and the Roth income phase-outs are $153,000-$168,000 (single/HOH) and $242,000-$252,000 (MFJ). Check the band width before trusting any quoted range: the single Roth band is always $15,000 wide, the MFJ band $10,000.
Long-term capital gains rates (0% / 15% / 20%) are separate from ordinary income rates. The 0% band reaches $49,450 of taxable income single and $98,900 MFJ.
The EITC pays up to $8,231 for a family with three or more children, and the Child Tax Credit is now $2,200 per child with $1,700 refundable.
The Pease limitation is gone for good. What replaces it is a limit on the tax benefit of itemized deductions confined to the 37% bracket. The phase-outs that do bite between $200,000 and $1,000,000 of income are the Child Tax Credit ($200,000 / $400,000), the QBI deduction ($201,750 / $403,500), and the AMT exemption ($500,000 / $1,000,000).
Self-employment tax, IRMAA, and NIIT hit high earners on three different definitions of income — net SE profit, MAGI from two years ago, and current-year MAGI — so they need to be planned together, not one at a time.
For detailed planning, use these numbers with a CPA or tax software to model your own 2026 situation. Small changes in income or deductions can push you across a bracket line or into a phase-out.
Sources
All figures above were checked against the following primary documents on 2026-07-29.
- Rev. Proc. 2025-32 (IRS, released October 9, 2025) — tax rate tables and bracket base amounts, standard deduction and the §63(f) additional amount, maximum capital gains rate breakpoints, Child Tax Credit and refundable portion, Earned Income Credit table, AMT exemptions and phase-outs, §199A thresholds and phase-in ranges, health FSA limit and carryover, estate basic exclusion amount, GST exemption, annual gift exclusion. https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
- IR-2025-103 (IRS news release, October 9, 2025) — summary of Rev. Proc. 2025-32, including the 2025 standard deduction figures used for comparison and the status of the itemized deduction limitation. https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill
- Notice 2025-67 (IRS) — 2026 retirement plan limits: §402(g) deferral, §414(v) catch-ups and the Roth catch-up wage threshold, §415(c) all-sources limit, SIMPLE limits, IRA contribution and catch-up amounts, and every IRA and Roth IRA phase-out range. https://www.irs.gov/pub/irs-drop/n-25-67.pdf
- Rev. Proc. 2025-19 (IRS) — 2026 HSA contribution limits and high-deductible health plan definitions. https://www.irs.gov/pub/irs-drop/rp-25-19.pdf
- IRS Topic no. 559 — Net Investment Income Tax rate and thresholds. https://www.irs.gov/taxtopics/tc559
- IRS Child Tax Credit page — credit amount, refundable portion, earned-income requirement, SSN requirement, and the $200,000 / $400,000 phase-out thresholds. https://www.irs.gov/credits-deductions/individuals/child-tax-credit
- Instructions for Form 8582 (IRS) — the $25,000 rental real estate special allowance and its $100,000-$150,000 modified AGI phase-out. https://www.irs.gov/instructions/i8582
- SSA, Contribution and Benefit Base — 2026 Social Security wage base of $184,500. https://www.ssa.gov/oact/cola/cbb.html
- SSA, Exempt Amounts Under the Earnings Test — 2026 limits of $24,480 and $65,160 and the $1-for-$2 and $1-for-$3 withholding rules. https://www.ssa.gov/oact/cola/rtea.html
- SSA, Latest Cost-of-Living Adjustment — the 2.8% COLA effective with January 2026 payments. https://www.ssa.gov/oact/cola/latestCOLA.html
- SSA, Effect of COLA on Average Social Security Benefits — average retired-worker benefit of $2,072 a month after the COLA. https://www.ssa.gov/oact/cola/colaeffect.html
- SSA, Normal Retirement Age — Full Retirement Age of 67 for people born in 1960 or later. https://www.ssa.gov/oact/ProgData/nra.html
- CMS fact sheet, 2026 Medicare Parts A & B Premiums and Deductibles (November 14, 2025) — Part B standard premium, deductible, and the full Part B and Part D IRMAA schedules. https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles
Figures identified above as fixed by statute rather than indexed — the NIIT thresholds, the Additional Medicare Tax thresholds, the 7.5% medical expense floor, the $400 Schedule C threshold, the Child Tax Credit phase-out thresholds, and the passive activity loss allowance — do not change from year to year and are not part of any annual inflation adjustment.