2026 Key Tax and Financial Planning Numbers: A Guide for the Year Ahead

Each year, the IRS updates contribution limits, tax thresholds, and key planning benchmarks that shape retirement strategies, income planning, gifting, and more. These numbers influence how much you can save, how much income you can recognize efficiently, and whether new planning opportunities may be available to you.

Understanding these changes helps you stay proactive rather than reactive. Here’s what you need to know to plan for 2026 with confidence.

2026 Retirement Plan Numbers

Qualified Plans and IRAs

Inflation-driven updates raise several retirement plan limits for 2026, creating more flexibility than in 2025.

• The elective deferral limit for 401(k), 403(b), 457(b), and SAR-SEP plans is $24,500, up from $23,500 in 2025.
• The age 50+ catch-up contribution is $8,000, increasing from $7,500 in 2025.
• The “super catch-up” limit for ages 60–63 remains $11,250 in 2026 due to new OBBBA rules separating standard and age-based catch-ups.
• The defined contribution annual additions limit (415(c)) rises to $72,000 (from $70,000).
• The defined benefit annual benefit limit (415(b)) increases to $290,000 (from $280,000).
• SIMPLE IRA deferral limit is $17,000, up from $16,500.
• SIMPLE IRA catch-up (50+) is $4,000 (up from $3,500).
• SIMPLE IRA additional catch-up for ages 60–63 remains $5,250.
• Annual IRA and Roth IRA contribution limit increases to $7,500 (from $7,000), and the age-50+ catch-up increases to $1,100 (from $1,000).

IRA Phaseouts and Qualified Charitable Distributions (QCDs)

The income phaseouts below determine who can take a traditional IRA deduction and who can contribute directly to a Roth IRA.

Traditional IRA deduction phaseouts for active plan participants rise to:

• $81,000–$91,000 for single/head of household.
• $129,000–$149,000 for married filing jointly.
• $0–$10,000 for married filing separately.

Roth IRA contribution phaseouts increase to:

• $153,000–$168,000 for single/head of household.
• $242,000–$252,000 for married filing jointly.
• $0–$10,000 for married filing separately.

In addition, the annual QCD exclusion limit for IRA owners over age 70½ rises to $111,000, allowing for larger direct charitable gifts from retirement accounts.

Health Savings Accounts (HSAs)

HSA and HDHP limits adjust for 2026, influencing tax-advantaged healthcare savings.

• Minimum HDHP deductibles: $1,700 single / $3,400 family.
• HDHP maximum out-of-pocket: $8,500 single / $17,000 family.
• HSA contribution limits: $4,400 single / $8,750 family.
• HSA catch-up contribution (age 55+): $1,000.

2026 Estate, Gift, and GST Tax Numbers

Higher transfer tax exemptions in 2026 create additional opportunities for lifetime gifting and long-term legacy planning.

• The annual gift tax exclusion remains at $19,000 per recipient.
• The exclusion for gifts to a non-U.S. citizen spouse increases to $194,000.
• The federal estate, lifetime gift, and GST exemption rises significantly to $15,000,000, up from $13,990,000 in 2025.
• The top federal estate, gift, and GST tax rate remains 40%.

2026 Income Tax Deductions, AMT, and QBI

Several key deduction amounts and thresholds rise modestly for 2026.

• The special senior (65+) exemption is $6,000, with phaseouts beginning at MAGI $75,000 single $150,000 joint.
• The standard deduction increases to:
  • $32,200 for married filing jointly (up from $30,000).
  • $24,150 for head of household (up from $22,500).
  • $16,100 for single and married filing separately (up from $15,000).
  • The dependent standard deduction is the greater of $1,350 or earned income + $450, capped at $16,100.
• The top ordinary income tax rate remains 37%.
• The maximum AMT rate remains 28%, with the 26% lower rate applying below AMTI thresholds.
• AMT exemptions generally increase to:
  • $90,100 for single/HOH with phaseout at $500,000–$680,200.
  • $140,200 for MFJ/surviving spouse with phaseout at $1,000,000–$1,280,000.
  • $70,100 for MFS with phaseout at $500,000–$640,200.
  • $31,400 for trusts/estates with phaseout at $104,800–$167,600.
• QBI (199A) phaseout ranges rise to:
  • $403,500–$553,500 for married filing jointly.
  • $201,775–$276,775 for single/head of household.
  • $201,750–$276,750 for married filing separately.

2026 Capital Gains and Net Investment Income Surtax

Inflation adjustments shift the long-term capital gain thresholds for 2026, influencing how investment income is taxed.

For long-term capital gains in 2026:

• Married filing jointly: 0% up to $98,900; 15% up to $613,700; 20% above $613,700.
• Head of household: 0% up to $66,200; 15% up to $579,600; 20% above $579,600.
• Single: 0% up to $49,450; 15% up to $545,500; 20% above $545,500.
• Married filing separately: thresholds align proportionally.
• Estates and trusts: 0% up to $3,300; 15% up to $16,250; 20% above $16,250.

The 3.8% net investment income surtax (NIIT) applies above:

• $200,000 for single/HOH.
• $250,000 for married filing jointly.
• $125,000 for married filing separately.
• $16,000 for estates and trusts.

Keep in mind that NIIT thresholds aren’t indexed to inflation, so they don’t change year to year.

2026 Kiddie Tax Numbers

Kiddie tax rules determine how unearned income is taxed for children and certain full-time students. For 2026:

• The first $1,350 of unearned income is exempt.
• The next $1,350 is taxed at the child’s rate.
• Unearned income above $2,700 is taxed at the parents’ marginal tax rate.

2026 Social Security and Medicare Numbers

Social Security

Social Security figures for 2026 reflect modest cost-of-living adjustments.

• The Social Security COLA is 2.8%.
• The maximum monthly benefit at full retirement age rises to $4,152.
• Earnings test thresholds rise slightly to:
  • $24,480 before FRA; benefits reduced $1 for every $2 above this amount.
  • $65,160 in the year of FRA; benefits reduced $1 for every $3 above this level.
  • No earnings limit once full retirement age is reached.

Medicare Premiums

Medicare premiums also shift for 2026, with updated ranges for Parts A, B, and D.

• Medicare Part A monthly premium ranges from $311–$565, though most beneficiaries continue to pay $0.
• Medicare Part B monthly premiums range from $202.90–$689.90, depending on income brackets.
• Part D income-related adjustments range from $0–$91 in addition to plan premiums.

Plan Ahead with the Key Numbers That Shape 2026

Understanding these updated limits can help you make more informed decisions in the year ahead. When you review these changes early, you can save more intentionally, manage your income more efficiently, and take advantage of new planning opportunities.

At SageMint Wealth, our mission is to make financial planning feel clear and manageable, so you can focus on what matters most to you. If you’d like help applying these updates to your personal financial plan, we’re here to support you. Reach out to schedule a meeting in the new year.