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Individual Income Tax Planning
Adoption credit
| Maximum credit | $17,280 | $17,670 |
| Phaseout threshold amount | $259,190 | $265,080 |
| Completed phaseout amount after | $299,190 | $305,080 |
| Refundable amount | $5,000 | $5,120 |
Alternative Minimum Tax (AMT)
| Married filing jointly or surviving spouse | $137,000 | $140,200 |
| Single or head of household | $88,100 | $90,100 |
| Married filing separately | $68,500 | $70,100 |
| Married filing jointly or surviving spouse | $1,252,700 | $1,000,000 |
| Single or head of household | $626,350 | $500,000 |
| Married filing separately | $626,350 | $500,000 |
| Phaseout rate | 25% | 50% |
| All taxpayers except married filing separately | $239,100 | $244,500 |
| Married filing separately | $119,550 | $122,250 |
Charitable deductions
| Deductible standard mileage rate | $0.14 | $0.14 |
| Low-cost article (re: unrelated business income) | $13.60 | $13.90 |
| Token gift maximum cost 1 | $13.60 | $13.90 |
| Minimum contribution amount 1 | $68.00 | $69.50 |
| 2% threshold amount 2 | $136 | $139 |
Child tax credit
| Maximum credit per qualifying child | $2,200 | $2,200 |
| Nonrefundable credit for dependents who are not qualifying children | $500 | $500 |
| Married filing jointly | $400,000 | $400,000 |
| All other filing status | $200,000 | $200,000 |
| Percentage | 15% | 15% |
| Amount | $2,500 | $2,500 |
| Maximum refundable amount of credit | $1,700 | $1,700 |
| Amount | $500 | $500 |
Classroom expenses of elementary and secondary school
teachers
| Maximum above-the-line deduction | $300 | $350 1 |
Earned income tax credit (EITC)
| Excessive investment income limit (“disqualified income limit”) | $11,950 | $12,200 |
| 0 children | $649 | $664 |
| 1 child | $4,328 | $4,427 |
| 2 children | $7,152 | $7,316 |
| 3 or more children | $8,046 | $8,231 |
| 0 children | $8,490 | $8,680 |
| 1 child | $12,730 | $13,020 |
| 2 or more children | $17,880 | $18,290 |
| 0 children | $17,730 | $18,140 |
| 1 child | $30,470 | $31,160 |
| 2 children | $30,470 | $31,160 |
| 3 or more children | $30,470 | $31,160 |
| 0 children | $10,620 | $10,860 |
| 1 child | $23,350 | $23,890 |
| 2 children | $23,350 | $23,890 |
| 3 or more children | $23,350 | $23,890 |
| 0 children | $26,214 | $26,820 |
| 1 child | $57,554 | $58,863 |
| 2 children | $64,430 | $65,899 |
| 3 or more children | $68,675 | $70,224 |
| 0 children | $19,104 | $19,540 |
| 1 child | $50,434 | $51,593 |
| 2 children | $57,310 | $58,628 |
| 3 or more children | $61,555 | $62,974 |
Expatriation
| An individual with “average annual net income tax” of more than this amount for the five taxable years ending before his or her loss of citizenship is a covered expatriate for the purposes of IRC §877A(g)(1) | $206,000 | $211,000 |
| IRC §877A(3) exclusion amount | $890,000 | $910,000 |
Foreign earned income
| Exclusion amount | $130,000 | $132,900 |
Itemized deductions
| Phaseout / limitation | For those in highest tax bracket, value of each dollar of itemized deductions capped at $0.35 | For those in highest tax bracket, value of each dollar of itemized deductions capped at $0.35 |
Kiddie tax
| Amount exempt from tax | $1,350 | $1,350 |
| Additional amount taxed at child’s rate | $1,350 | $1,350 |
| Unearned income over this amount generally taxed at parents’ tax rates | $2,700 | $2,700 |
| Election to include child’s income on parent’s return — child’s gross income requirement | $1,350 – $13,500 | $1,350 – $13,500 |
| AMT exemption for child subject to kiddie tax | Lesser of $9,550 + child’s earned income or $88,100 | Lesser of $9,750 + child’s earned income or $90,100 |
Medicare tax (additional payroll tax and unearned
income contribution tax)
| Additional Medicare payroll tax (and self-employment tax) percentage rate | 0.90% | 0.90% |
| Individuals | $200,000 | $200,000 |
| Married filing jointly | $250,000 | $250,000 |
| Married filing separately | $125,000 | $125,000 |
| Unearned income Medicare contribution tax rate | 3.80% | 3.80% |
| Individuals | $200,000 | $200,000 |
| Married filing jointly | $250,000 | $250,000 |
| Married filing separately | $125,000 | $125,000 |
Nanny tax
| Domestic employee coverage threshold | $2,800 | $3,000 |
Overtime deduction
| Single, Head of Household | $12,500 | $12,500 |
| Married Filing Jointly | $25,000 | $25,000 |
| Single, Head of Household | $150,000 | $150,000 |
| Married Filing Jointly | $300,000 | $300,000 |
| Single, Head of Household | $275,000 | $275,000 |
| Married Filing Jointly | $550,000 | $550,000 |
“Saver’s Credit”
| Maximum credit amount | $1,000 | $1,000 |
| Joint Return | $0 – $47,500 | $0 – $48,500 |
| Head of Household | $0 – $35,625 | $0 – $36,375 |
| Other | $0 – $23,750 | $0 – $24,250 |
| Joint Return | $47,501 – $51,000 | $48,501 – $52,500 |
| Head of Household | $35,626 – $38,250 | $36,376 – $39,375 |
| Other | $23,751 – $25,500 | $24,251 – $26,250 |
| Joint Return | $51,001 – $79,000 | $52,501 – $80,500 |
| Head of Household | $38,251 – $59,250 | $39,376 – $60,375 |
| Other | $25,501 – $39,500 | $26,251 – $40,250 |
| Joint Return | Over $79,000 | Over $80,500 |
| Head of Household | Over $59,250 | Over $60,375 |
| Other | Over $39,500 | Over $40,250 |
Senior deduction (individuals age 65 or older)
| Amount | $6,000 per qualified individual | $6,000 per qualified individual |
| Single, Head of Household | $75,000 | $75,000 |
| Married Filing Jointly | $150,000 | $150,000 |
| Single, Head of Household | $175,000 | $175,000 |
| Married Filing Jointly | $250,000 | $250,000 |
Standard deductions
| Married filing jointly or surviving spouse | $31,500 | $32,200 |
| Head of household | $23,625 | $24,150 |
| Unmarried | $15,750 | $16,100 |
| Married filing separately | $15,750 | $16,100 |
| Dependent–Standard deduction cannot exceed the greater of: | $1,350 or $450 + earned income | $1,350 or $450 + earned income |
| Additional deduction for aged or blind (single or head of household) | $2,000 | $2,050 |
| Additional deduction for aged or blind (all other filing statuses) | $1,600 | $1,650 |
Standard mileage rates
| Use of auto for business purposes (cents per mile) | $0.70 | TBD |
| Use of auto for medical purposes (cents per mile) | $0.21 | TBD |
| Use of auto for moving purposes (cents per mile) | $0.21 | TBD |
Tip income deduction
| Amount | $25,000 | $25,000 |
| Single, Head of Household | $150,000 | $150,000 |
| Married Filing Jointly | $300,000 | $300,000 |
| Single, Head of Household | $400,000 | $400,000 |
| Married Filing Jointly | $550,000 | $550,000 |
2026 Federal Income Tax Rate Schedules (Individuals,
Trusts, and Estates)
Single taxpayers
| Not over $12,400 | 10% of taxable income |
| Over $12,400 to $50,400 | $1,240 + 12% of the excess over $12,400 |
| Over $50,400 to $105,700 | $5,800 + 22% of the excess over $50,400 |
| Over $105,700 to $201,775 | $17,966 + 24% of the excess over $105,700 |
| Over $201,775 to $256,225 | $41,024 + 32% of the excess over $201,775 |
| Over $256,225 to $640,600 | $58,448 plus 35% of the excess over $256,225 |
| Over $640,600 | $192,979.25 plus 37% of the excess over $640,600 |
Married filing jointly and surviving spouses
| Not over $24,800 | 10% of taxable income |
| Over $24,800 to $100,800 | $2,480 + 12% of the excess over $24,800 |
| Over $100,800 to $211,400 | $11,600 plus 22% of the excess over $100,800 |
| Over $211,400 to $403,550 | $35,932 plus 24% of the excess over $211,400 |
| Over $403,550 to $512,450 | $82,048 plus 32% of the excess over $403,550 |
| Over $512,450 to $768,700 | $116,896 plus 35% of the excess over $512,450 |
| Over $768,700 | $206,583.50 plus 37% of the excess over $768,700 |
Married individuals filing separately
| Not over $12,400 | 10% of taxable income |
| Over $12,400 to $50,400 | $1,240 + 12% of the excess over $12,400 |
| Over $50,400 to $105,700 | $5,800 + 22% of the excess over $50,400 |
| Over $105,700 to $201,775 | $17,966 + 24% of the excess over $105,700 |
| Over $201,775 to $256,225 | $41,024 + 32% of the excess over $201,775 |
| Over $256,225 to $384,350 | $58,448 plus 35% of the excess over $256,225 |
| Over $384,350 | $103,291.75 plus 37% of the excess over $384,350 |
Heads of household
| Not over $17,700 | 10% of taxable income |
| Over $17,700 to $67,450 | $1,770 + 12% of the excess over $17,700 |
| Over $67,450 to $105,700 | $7,740 plus 22% of the excess over $67,450 |
| Over $105,700 to $201,750 | $16,155 plus 24% of the excess over $105,700 |
| Over $201,750 to $256,200 | $39,207 plus 32% of the excess over $201,750 |
| Over $256,200 to $640,600 | $56,631 plus 35% of the excess over $256,200 |
| Over $640,600 | $191,171 plus 37% of the excess over $640,600 |
Trusts and estates
| Not over $3,300 | 10% of taxable income $3,851 + 37% of the excess over $16,000 |
| Over $3,300 to $11,700 | $330 + 24% of the excess over $3,300 |
| Over $11,700 to $16,000 | $2,346 + 35% of the excess over $11,700 |
| Over $16,000 | $3,851 + 37% of the excess over $16,000 |
2025 Federal Income Tax Rate Schedules (Individuals,
Trusts, and Estates)
Single taxpayers
| Not over $11,925 | 10% of taxable income |
| Over $11,925 to $48,475 | $1,192.50 + 12% of the excess over $11,925 |
| Over $48,475 to $103,350 | $5,578.50 + 22% of the excess over $48,475 |
| Over $103,350 to $197,300 | $17,651 + 24% of the excess over $103,350 |
| Over $197,300 to $250,525 | $40,199 + 32% of the excess over $197,300 |
| Over $250,525 to $626,350 | $57,231 + 35% of the excess over $250,525 |
| Over $626,350 | $188,769.75 + 37% of the excess over $626,350 |
Married filing jointly and surviving spouses
| Not over $23,850 | 10% of taxable income |
| Over $23,850 to $96,950 | $2,385 + 12% of the excess over $23,850 |
| Over $96,950 to $206,700 | $11,157 + 22% of the excess over $96,950 |
| Over $206,700 to $394,600 | $35,302 + 24% of the excess over $206,700 |
| Over $394,600 to $501,050 | $80,398 + 32% of the excess over $394,600 |
| Over $501,050 to $751,600 | $114,462 + 35% of the excess over $501,050 |
| Over $751,600 | $202,154.50 + 37% of the excess over $751,600 |
Married individuals filing separately
| Not over $11,925 | 10% of taxable income |
| Over $11,925 to $48,475 | $1,192.50 + 12% of the excess over $11,925 |
| Over $48,475 to $103,350 | $5,578.50 + 22% of the excess over $48,475 |
| Over $103,350 to $197,300 | $17,651 + 24% of the excess over $103,350 |
| Over $197,300 to $250,525 | $40,199 + 32% of the excess over $197,300 |
| Over $250,525 to $375,800 | $57,231 + 35% of the excess over $250,525 |
| Over $375,800 | $101,077.25 + 37% of the excess over $375,800 |
Heads of household
| Not over $17,000 | 10% of taxable income |
| Over $17,000 to $64,850 | $1,700 + 12% of the excess over $17,000 |
| Over $64,850 to $103,350 | $7,442 + 22% of the excess over $64,850 |
| Over $103,350 to $197,300 | $15,912 + 24% of the excess over $103,350 |
| Over $197,300 to $250,500 | $38,460 + 32% of the excess over $197,300 |
| Over $250,500 to $626,350 | $55,484 + 35% of the excess over $250,500 |
| Over $626,350 | $187,031.50 + 37% of the excess over $626,350 |
Trusts and estates
| Not over $3,150 | 10% of taxable income |
| Over $3,150 to $11,450 | $315 + 24% of the excess over $3,150 |
| Over $11,450 to $15,650 | $2,307 + 35% of the excess over $11,450 |
| Over $15,650 | $3,777 + 37% of the excess over $15,650 |
Business Planning
Adoption Assistance Programs
| Maximum amount that can be excluded from employee’s gross income | $17,280 | $17,670 |
| Phaseout threshold amount | $259,190 | $265,080 |
| Completed phaseout amount after | $299,190 | $305,080 |
Earnings subject to FICA taxes (taxable wage base)
| Maximum annual earnings subject to Social Security taxes | $176,100 | $184,500 |
| Social Security and Medicare combined tax rate | 15.30% 1 | 15.30% 1 |
| OASDI portion (Social Security) | 12.40% | 12.40% |
| Hospital Insurance portion (Medicare) | 2.90% 1 | 2.90% 1 |
Health insurance deduction for self-employed
| Deduction for health insurance premiums paid by self-employed persons | 100% | 100% |
Qualified transportation fringe benefits
| Commuter vehicles and transit pass monthly exclusion amount | $325 | $340 |
| Qualified parking monthly exclusion amount | $325 | $340 |
| Qualified bicycle commuting reimbursement fringe benefit (monthly amount) | N/A | N/A |
Section 179 expensing
| Maximum amount that may be deducted under IRC Section 179 | $2,500,000 | $2,560,000 |
| Deduction reduced by the amount by which the cost of §179 property placed in service during the year exceeds this amount | $4,000,000 | $4,090,000 |
Small business tax credit for providing health-care
coverage
| Maximum credit percentage | 50% | 50% |
| Number of full-time equivalent employees (FTEs) fewer than: | 25 | 25 |
| Maximum average annual wages less than: | $66,600 | $68,200 |
| Number of full-time equivalent employees (FTEs) no more than: | 10 | 10 |
| Maximum average annual wages less than or equal to: | $32,400 | $34,100 |
Special additional first-year depreciation allowance
| “Bonus” depreciation for qualified property acquired and placed in service during specified time periods | 100%² | 100% |
Standard mileage rate (per mile)
| Use of auto for business purposes | $0.70 | TBD |
Education Planning
American Opportunity and Lifetime Learning Credits
| Maximum American Opportunity credit | $2,500 | $2,500 |
| Maximum Lifetime Learning credit | $2,000 | $2,000 |
| Single–phaseout threshold amount | $80,000 | $80,000 |
| Single–completed phaseout amount after | $90,000 | $90,000 |
| Married filing jointly–phaseout threshold amount | $160,000 | $160,000 |
| Married filing jointly–completed phaseout amount after | $180,000 | $180,000 |
| Single–phaseout threshold amount | $80,000 | $80,000 |
| Single–completed phaseout amount after | $90,000 | $90,000 |
| Married filing jointly–phaseout threshold amount | $160,000 | $160,000 |
| Married filing jointly–completed phaseout amount after | $180,000 | $180,000 |
Coverdell education savings accounts
| Annual contribution limit | $2,000 | $2,000 |
| Single–phaseout threshold amount | $95,000 | $95,000 |
| Single–completed phaseout amount after | $110,000 | $110,000 |
| Married filing jointly–phaseout threshold amount | $190,000 | $190,000 |
| Married filing jointly–completed phaseout threshold amount | $220,000 | $220,000 |
Deduction for student loan interest
| Maximum deduction for interest paid on qualified education loans | $2,500 | $2,500 |
| Single–phaseout threshold amount | $85,000 | $85,000 |
| Single–completed phaseout amount after | $100,000 | $100,000 |
| Married filing jointly–phaseout threshold amount | $170,000 | $175,000 |
| Married filing jointly–completed phaseout amount after | $200,000 | $205,000 |
Gift tax exclusion
| Annual gift tax exclusion–single individual | $19,000 | $19,000 |
| Annual gift tax exclusion–joint gift | $38,000 | $38,000 |
| Lump-sum gift to 529 plan–single individual | $95,000 | $95,000 |
| Lump-sum gift to 529 plan–joint gift | $190,000 | $190,000 |
Kiddie tax
| Children’s unearned income over this amount generally taxed at parents’ tax rates | $2,700 | $2,700 |
U.S. savings bonds interest exclusion for college
expenses
| Phaseout threshold for joint returns | $149,250 | $152,650 |
| Completed phaseout amount after | $179,250 | $182,650 |
| Phaseout threshold for other returns | $99,500 | $101,800 |
| Completed phaseout amount after | $114,500 | $116,800 |
Protection Planning
Eligible long-term care premium deduction limits:
| Age 40 or under | $480 | $500 |
| Age 41-50 | $900 | $930 |
| Age 51-60 | $1,800 | $1,860 |
| Age 61-70 | $4,810 | $4,960 |
| Over age 70 | $6,020 | $6,200 |
Per diem limit:
| Periodic payments for qualified long-term care insurance/certain life insurance | $420 | $430 |
Archer Medical Savings Accounts
| Annual deductible–minimum | $2,850 | $2,900 |
| Annual deductible–maximum | $4,300 | $4,400 |
| Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed | $5,700 | $5,850 |
| Annual deductible–minimum | $5,700 | $5,850 |
| Annual deductible–maximum | $8,550 | $8,750 |
| Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed | $10,500 | $10,700 |
Flexible spending account (FSA) for health care
| Maximum salary reduction contribution | $3,300 | $3,400 |
Health Savings Accounts (HSAs)
| Self-only coverage | $4,300 | $4,400 |
| Family coverage | $8,550 | $8,750 |
| Annual deductible–minimum | $1,650 | $1,700 |
| Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed | $8,300 | $8,500 |
| Annual deductible–minimum | $3,300 | $3,400 |
| Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed | $16,600 | $17,000 |
| Annual catch-up contribution limit for individuals age 55 or older | $1,000 | $1,000 |
Estate Planning
| Annual gift exclusion: | $19,000 | $19,000 |
| Gift and estate tax applicable exclusion amount: | $13,990,000 + DSUEA 1 | $15,000,000 + DSUEA 1 |
| Noncitizen spouse annual gift exclusion: | $190,000 | $194,000 |
| Generation-skipping transfer (GST) tax exemption: | $13,990,000 2 | $15,000,000 2 |
| Special use valuation limit (qualified real property in decedent’s gross estate): | $1,420,000 | $1,460,000 |
2025 and 2026 gift and estate tax rate schedule
| 0 – $10,000 | $0 | 18% | $0 |
| $10,000 – $20,000 | $1,800 | 20% | $10,000 |
| $20,000 – $40,000 | $3,800 | 22% | $20,000 |
| $40,000 – $60,000 | $8,200 | 24% | $40,000 |
| $60,000 – $80,000 | $13,000 | 26% | $60,000 |
| $80,000 – $100,000 | $18,200 | 28% | $80,000 |
| $100,000 – $150,000 | $23,800 | 30% | $100,000 |
| $150,000 – $250,000 | $38,800 | 32% | $150,000 |
| $250,000 – $500,000 | $70,800 | 34% | $250,000 |
| $500,000 – $750,000 | $155,800 | 37% | $500,000 |
| $750,000 – $1,000,000 | $248,300 | 39% | $750,000 |
| $1,000,000 + | $345,800 | 40% | $1,000,000 |
| Credit shelter amount $13,990,000 in 2025 and $15,000,000 in 2026 | Unified credit amount $5,541,800 in 2025 and $5,945,800 in 2026 | ||
Government Benefits
Social Security
| For Social Security and Supplemental Security Income (SSI) beneficiaries | 2.50% | 2.80% |
| FICA tax — Employee | 7.65% | 7.65% |
| Social Security (OASDI) portion of tax | 6.20% | 6.20% |
| Medicare (HI) portion of tax | 1.45% 1 | 1.45% 1 |
| Self-Employed | 15.30% | 15.30% |
| Social Security (OASDI) portion of tax | 12.40% | 12.40% |
| Medicare (HI) portion of tax | 2.90% 1 | 2.90% 1 |
| Social Security (OASDI only) | $176,100 | $184,500 |
| Medicare (HI only) | No Limit | No limit |
| Earnings required | $1,810 | $1,890 |
| Yearly figure | $23,400 | $24,480 |
| Monthly figure | $1,950 | $2,040 |
| Yearly figure | $62,160 | $65,160 |
| Monthly figure | $5,180 | $5,430 |
| No limit on earnings | No limit on earnings |
| Substantial gainful activity (SGA) for the sighted (monthly figure) | $1,620 | $1,690 |
| Substantial gainful activity for the blind (monthly figure) | $2,700 | $2,830 |
| Trial work period (TWP) (monthly figure) | $1,160 | $1,210 |
| Individual (monthly figure) | $967 | $994 |
| Couple (monthly figure) | $1,450 | $1,491 |
| Individual | $2,000 | $2,000 |
| Couple | $3,000 | $3,000 |
| Monthly limit | $2,350 | $2,410 |
| Annual limit | $9,460 | $9,730 |
| Worker retiring at full retirement age (monthly figure) | $4,018 | $4,152 |
| (90% of first X of AIME + 32% of the AIME over X and through Y + 15% of AIME over Y) | X=$1,226 Y=$7,391 | X=$1,286 Y=$7,749 |
Medicare
| Individuals with 40 or more quarters of Medicare-covered employment | $0 | $0 |
| Individuals with less than 40 quarters of Medicare-covered employment who are not otherwise eligible for premium-free hospital insurance | Up to $518 | Up to $565 |
| 2025 | 2026 | 2025 | 2026 |
| Less than or equal to $106,000 | Less than or equal to $109,000 | $185.00 2 | $202.90 2 |
| $106,001 – $133,000 | $109,001 – $137,000 | $259.00 | $284.10 |
| $133,001 – $167,000 | $137,001 – $171,000 | $370.00 | $405.80 |
| $167,001 – $200,000 | $171,001 – $205,000 | $480.90 | $527.50 |
| $200,001 – $499,999 | $205,001 – $499,999 | $591.90 | $649.20 |
| $500,000 and above | $500,000 and above | $628.90 | $689.90 |
| 2025 | 2026 | 2025 | 2026 |
| Less than or equal to $212,000 | Less than or equal to $218,000 | $185.00 2 | $202.90 2 |
| $212,001 – $266,000 | $218,000 – $274,000 | $259.00 | $284.10 |
| $266,001 – $334,000 | $274,001 – $342,000 | $370.00 | $405.80 |
| $334,001 – $400,000 | $342,001 – $410,000 | $480.90 | $527.50 |
| $400,001 – $749,999 | $410,001 – $749,999 | $591.90 | $649.20 |
| $750,000 and above | $750,000 and above | $628.90 | $689.90 |
| 2025 | 2026 | 2025 | 2026 |
| Less than or equal to $106,000 | Less than or equal to $109,000 | $185.00 2 | $202.90 2 |
| $106,001 – $393,999 | $109,001 – $390,999 | $591.90 | $649.20 |
| $394,000 and above | $391,000 and above | $628.90 | $689.90 |
| Deductible per benefit period | $1,676 | $1,736 |
| Coinsurance per day for 61st to 90th day of each benefit period | $419 | $434 |
| Coinsurance per day for 91st to 150th day for each lifetime reserve day (total of 60 lifetime reserve days–nonrenewable) | $838 | $868 |
| Skilled nursing facility coinsurance per day for 21st to 100th day of each benefit period | $209.50 | $217.00 |
| Individual pays 20 percent of the Medicare-approved amount for services after deductible is met | $257 | $283 |
Medicaid
| Monthly income threshold for income-cap states (“300 percent cap limit”) | $2,901 | $2,982 |
| Minimum 3 | $2,555.00 | $2,643.75 |
| Maximum | $3,948.00 | TBD |
| Minimum | $31,584 | TBD |
| Maximum | $157,920 | TBD |
Retirement Planning
Employee/individual contribution limits
| 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs 1 [Includes Roth 401(k) and Roth 403(b) contributions] | Lesser of $23,500 or 100% of participant’s compensation | Lesser of $24,500 or 100% of participant’s compensation |
| SIMPLE 401(k) plans and SIMPLE IRA plans 1 | Lesser of $16,500 or 100% of participant’s compensation | Lesser of $17,000 or 100% of participant’s compensation |
| SIMPLE 401(k) plans and SIMPLE IRA plans with 25 or fewer employees (or those that elect these higher limits) 1 | Lesser of $17,600 or 100% of participant’s compensation | Lesser of $18,100 or 100% of participant’s compensation |
| Starter 401(k) plans and safe-harbor 403(b) plans | Between 3% and 15% of annual compensation up to a maximum of $6,000 ($7,000 if age 50 or older) | Between 3% and 15% of annual compensation up to a maximum of $6,000 ($7,100 if age 50 or older) |
| Traditional IRAs | Lesser of $7,000 or 100% of earned income | Lesser of $7,500 or 100% of earned income |
| Roth IRAs | Lesser of $7,000 or 100% of earned income | Lesser of $7,500 or 100% of earned income |
| 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs 2 | $7,500 | $8,000 |
| *Catch-up limit if age 60 to 63 | $11,250 | $11,250 |
| SIMPLE 401(k) plans and SIMPLE IRA plans | $3,500 ($3,850 for plans with 25 or fewer employees, or that elect this higher limit) | $4,000 ($3,850 for plans with 25 or fewer employees, or that elect this higher limit) |
| *Catch-up limit if age 60 to 63 | $5,250 | $5,250 |
| Income threshold at which catch-up contributions must be designated as Roth contributions (employer-sponsored retirement plans) | N/A | $150,000 |
| IRAs (traditional and Roth) | $1,000 | $1,100 |
Employer contribution/benefit
3
limits
| Annual contribution limit per participant | No predetermined limit. Contributions based on amount needed to fund promised benefits. | No predetermined limit. Contributions based on amount needed to fund promised benefits. |
| Annual benefit limit per participant | Lesser of $280,000 or 100% of average compensation for highest 3 consecutive years | Lesser of $290,000 or 100% of average compensation for highest three consecutive years |
| Annual addition limit per participant (employer contributions; employee pre-tax, after-tax, and Roth contributions; and forfeitures) (does not apply to SIMPLE IRA plans) | Lesser of $70,000 or 100% (25% for SEP) of participant’s compensation | Lesser of $72,000 or 100% (25% for SEP) of participant’s compensation |
| Maximum tax-deductible employer contribution [not applicable to 403(b) plans] | 25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans | 25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans |
| Pension-linked emergency savings accounts (maximum amount attributable to employee deferrals) | $2,500 | $2,600 |
Compensation limits/thresholds
| Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans and SEPs) | $350,000 | $360,000 |
| Compensation threshold used to determine a highly compensated employee | $160,000 (when 2025 is the look-back year) | $160,000 (when 2026 is the look-back year) |
| Compensation threshold used to determine a key employee in a top-heavy plan | $1 for more-than-5% owners, $230,000 for officers, $150,000 for more-than-1% owners | “$1 for more-than-5% owners $235,000 for officers $150,000 for more-than-1% owners” |
| Compensation threshold used to determine a qualifying employee under a SIMPLE plan | $5,000 | $5,000 |
| Compensation threshold used to determine a qualifying employee under a SEP plan | $750 | $800 |
| Single | $79,000 – $89,000 | $81,000 – $91,000 |
| Married filing jointly | $126,000 – $146,000 | $129,000 – $149,000 |
| Married filing separately | $0 – $10,000 | $0 – $10,000 |
| Joint return with a spouse who is covered by an employer-sponsored retirement plan | $236,000 – $246,000 | $242,000 – $252,000 |
| Single | $150,000 – $165,000 | $153,000 – $168,000 |
| Married filing jointly | $236,000 – $246,000 | $242,000 – $252,000 |
| Married filing separately | $0 – $10,000 | $0 – $10,000 |
Qualified charitable distribution
| Annual amount not includible in gross income | $108,000 | $111,000 |
| One-time exclusion for transfer to split-interest entity | $54,000 | $55,000 |
Investment Planning
Maximum tax on long-term capital gains and qualified
dividends
| Single | Up to $48,350 | Up to $49,450 |
| Married filing jointly | Up to $96,700 | Up to $98,900 |
| Married filing separately | Up to $48,350 | Up to $49,450 |
| Head of household | Up to $64,750 | Up to $66,200 |
| Single | $48,350 to $533,400 | $49,450 to $545,500 |
| Married filing jointly | $96,700 to $600,050 | $98,900 to $613,700 |
| Married filing separately | $48,350 to $300,000 | $49,450 to $306,850 |
| Head of household | $64,750 to $566,700 | $66,200 to $579,600 |
| Single | Over $533,400 | Over $545,500 |
| Married filing jointly | Over $600,050 | Over $613,700 |
| Married filing separately | Over $300,000 | Over $306,850 |
| Head of household | Over $566,700 | Over $579,600 |
Unearned income Medicare contribution tax (“net
investment income tax”)
| Tax percentage | 3.80% | 3.80% |
| Individuals | $200,000 | $200,000 |
| Married filing jointly | $250,000 | $250,000 |
| Married filing separately | $125,000 | $125,000 |
Prepared by Broadridge Advisor Solutions. © 2025 Broadridge Financial Services, Inc.