The Numbers You Need: 2026 Limits and Key Planning Figures

Here they are, the numbers you need from the IRS to plan ahead for next year. Remember that the below applies to money you earn starting January 1, 2026, so don’t make any changes just yet. See this post for the numbers affecting 2025. Some important highlights:

Standard deduction

• increases to $16,100 if your filing status is single or married-filing-separately

• increases to $24,150 if your filing status is head of household

• increases to $32,000 if your filing status is married-filing-jointly

Review this post for an explainer on the filing statuses and which to use.

Tax brackets

• the number of brackets remains the same at 7

• next year will see a 4% increase for the lower two brackets and 2.3% for the higher brackets: see here for specifics

401k/403b/457/Thrift Savings Plan contribution limits

• the employee contribution limit increases to $24,500

• the catchup contribution limit (which is available to you beginning the year you turn 50) increases to $8,000 but......

• REMINDER!: starting in 2025, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans For 2026, this higher catch-up contribution limit is again $11,250. 

• ALSO NEW: an expected change is finally being implemented: by 2027, that over-50 401k catchup contribution will need to be made as a Roth contribution for most savers. Many plans will apply this change starting in 2026, if they haven't already.

• the overall plan limit (employee + employer + catchup + aftertax) increases to $72,000. This is the number those contributing to SEP or Solo 401k plans should keep in mind as well

IRA contribution limits

• the IRA and Roth contribution limit increases to $7,500, and the catchup contribution increases to $1,100.

• the income limits that relate to making or deducting these contributions will change (see here for details), so familiarize yourself with those limits, or ask your advisor, before making a contribution in 2025

Estate and gift tax exemption

• the estate tax exemption increases to $15 million per individual - so a married couple can leave an estate of $30 million free of federal estate taxes. States might have a different idea, of course.

• the annual gift tax exclusion will stay the same next year at $19,000. This means you can give $19,000 to as many people each year as you like without it having an impact on your eventual estate tax. If you are married, you and your spouse can each give $19,000. And remember, a gift is never taxable to the recipient.

Social Security

• cost-of-living adjustment (COLA) for those currently receiving benefits: 2.8%

• the earnings limit increases to $184,500. This is the maximum amount of annual income that is subject to the Social Security tax. If you expect your gross income to be at least that much next year, remember to factor in the increased take-home once you reach that limit, and be proactive about giving those dollars a job. Also keep in mind that the limit is applied to each person individually: marital status, deductions, and/or your spouse’s income don’t matter.

You can use the above information, as well as any expected changes to your situation (expected job change? change in marital status?) to consider any moves you might want to make in January for the rest of the year.