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2026 Important Tax Numbers

 

As 2026 quickly approaches, I am writing to provide an update on tax and retirement changes for next year.

Specifically, tax brackets and retirement-plan contribution limits to certain accounts are changing for 2026 which could impact your financial plan and tax situation.

Learn more

A few notable highlights include:

  • 401(k) and 403(b) contribution limits increase:

    • $24,500 personal contribution (up from $23,500 in 2025)

    • $8,000 age 50+ catch-up contribution remains the same (up from $7,500 in 2025)

    • $11,250 age 60-63 “super” catch-up contribution

      • $3,000 additional 403(b) catch-up contribution after 15+ years of service

  • Health Savings Account (HSA) contribution limits increase:

    • $4,500 individual contribution (up from $4,300 in 2025)

    • $8,750 family contribution (up from $8,550 in 2025)

    • $1,000 age 55+ catch-up contribution remains the same

  • Traditional and Roth IRA contribution limits increase:

    • $7,500 base contribution (up from $7,000 in 2025)

    • $1,100 age 50+ catch-up contribution (up from $1,000 in 2025)

  • Roth IRA income phaseout increase:

    • $153,000 - $168,000 for single filers

    • $242,000 - $252,000 for joint filers

  • Standard deduction increase:

    • $32,200 married filing jointly (up from $30,000 in 2025)

    • $16,100 single filers (up from $15,000 in 2025)

  • State and local tax (SALT) deduction increase:

    • Up to $40,000 (up from $10,000 in previous years)

    • $505,000 - $605,000 income phaseout (single or married filing jointly)

  • Charitable deductions change:

    • With standard deduction: $2,000 (for married filers) or $1,000 for single filers

    • With itemized deduction: 0.50% of adjusted-gross income (AGI) floor

  • Gift tax annual exclusion remains the same:

    • $19,000 per person

  • Federal income tax brackets shift higher

  • Capital-gains tax income brackets shift higher

  • Required Minimum Distribution (RMD) uniform lifetime table adjust

Do you have questions about how these tax numbers compare to 2025 and impact your financial plan? Reach out to me at Ben@coveplanning.com or schedule a free consultation call.

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Ben Smith is a fee-only financial advisor and CERTIFIED FINANCIAL PLANNER™ (CFP®) Professional with offices in Milwaukee, WI, Evanston, IL and Wayzata, MN, serving clients virtually across the country. Cove Financial Planning provides comprehensive financial planning and investment management services to individuals and families, regardless of location, with a focus on Socially Responsible Investing (SRI).

Ben acts as a fiduciary for his clients. He does not sell financial products or take commissions. Simply put, he sits on your side of the table and always works in your best interest. Learn more how we can help you Do Well While Doing Good!

Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. I encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Ben Smith, and all rights are reserved. Read the full Disclaimer.

 
Ben Smith