Every year, the amounts allowed for various federal tax benefits are subject to inflation adjustments and legislative changes. The following list provides some important federal tax information for 2026, as compared with 2025.
Social Security/Medicare
- Social Security Tax Wage Base: $184,500 for 2026 (up from $176,100 for 2025)
- Medicare Tax Wage Base: No limit for 2026 or 2025
- Employee portion of Social Security: 6.2% for 2026 and 2025
- Employee portion of Medicare: 1.45% for 2026 and 2025
Individual Retirement Accounts
- Traditional and Roth contribution limits, up to 100% of earned income: $7,500 for 2026 (up from $7,000 for 2025)
- Traditional and Roth catch-up contribution limits for account owners age 50 and older: $1,100 for 2026 (up from $1,000 for 2025)
Qualified Plan Limits
- Contributions to defined contribution plans: $72,000 for 2026 (up from $70,000 for 2025)
- Benefits provided by defined benefit plans: $290,000 for 2026 (up from $280,000 for 2025)
- Salary deferrals to 401(k), 403(b) and 457 plans: $24,500 for 2026 (up from $23,500 for 2025)
- Catch-up contributions to 401(k), 403(b) and 457 plans for those age 50 and older: $8,000 for 2026 (up from $7,500 for 2025)
- Additional catch-up contributions to 401(k), 403(b) and 457 plans for those age 60, 61, 62 or 63: $11,250 for 2026 (unchanged from 2025)
- Salary deferrals to SIMPLE plans: $17,000 for 2026 (up from $16,500 for 2025)
- Catch-up contributions to SIMPLE plans for those age 50 and older: $4,000 for 2026 (up from $3,500 for 2025)
- Additional catch-up contributions to SIMPLE plans for those age 60, 61, 62 or 63: $5,250 for 2026 (unchanged from 2025)
- Compensation defining a highly compensated employee: $160,000 for 2026 (unchanged from 2025)
- Compensation defining a key employee (officer) in a top-heavy plan: $235,000 for 2026 (up from $230,000 for 2025)
- Compensation triggering Simplified Employee Pension contribution requirement: $800 for 2026 (up from $750 for 2025)
Driving Deductions
- Business mileage, per mile: 72.5 cents for 2026 (up from 70 cents for 2025)
- Charitable mileage, per mile: 14 cents for 2026 and 2025 (set by federal law)
- Medical and eligible moving per mile: 20.5 cents for 2026 (down from 21 cents for 2025)
Business Equipment
- Section 179 deduction maximum: $2.56 million for 2026 ($2.5 million for 2025)
- Section 179 phaseout: $4.09 million for 2026 ($4 million for 2025)
Business Meals
- General deduction for eligible business-related food and beverage expenses: 50% for 2026 and 2025
Business Requirement to File Form 1099-NEC
- Threshold for payments made to independent contractors: $2,000 for 2026 (up from $600 for 2025)
Transportation Fringe Benefit Exclusion
- Monthly commuter highway vehicle and transit pass: $340 for 2026 (up from $325 for 2025)
- Monthly qualified parking: $340 for 2026 (up from $325 for 2025)
Standard Deduction
- Married filing jointly: $32,200 for 2026 (up from $31,500 for 2025)*
- Single and married filing separately: $16,100 for 2026 (up from $15,750 for 2025)*
- Head of household: $24,150 for 2026 (up from $23,625 for 2025)*
*Plus an additional standard deduction amount for those age 65 and over and/or blind taxpayers.
Domestic Employees
- Threshold when a domestic employer must withhold and pay FICA for child care workers, residential cleaners and other household workers: $3,000 for 2026 (up from $2,800 for 2025)
Kiddie Tax
- Amount used to reduce the net unearned income reported on a child's return that's subject to the kiddie tax: $1,350 for 2026 (unchanged from 2025)
Estate Tax
- Federal estate tax exemption: $15 million for 2026 (up from $13.99 million for 2025)
- Maximum estate tax rate: 40% for 2026 and 2025
Annual Gift Exclusion
- Amount you can give each recipient: $19,000 for 2026 (unchanged from 2025)
Child Tax Credit
- Qualifying child amount: $2,200 for 2026 (unchanged from 2025)
State and Local Tax (SALT) Deduction Cap
- The amount that can be deducted by taxpayers who itemize for property taxes and either income tax or sales tax: $40,400 for 2026 (up from $40,000 for 2025)
For More Information
In addition to bringing inflation-adjusted amounts for 2026, the One Big Beautiful Bill Act introduces important tax law changes — some of which take effect this year. Taxpayers should review these developments carefully. Consult your tax advisor for help filing your 2025 return and planning strategically for the year ahead.
