A new year brings updated tax figures for individual taxpayers. Many limits are adjusted annually for inflation and generally rise over time. For 2026, additional changes also take effect under the One Big Beautiful Bill Act, signed into law on July 4, 2025.
Below is a summary of key deductions, contribution limits, and other important tax figures that may affect your 2026 tax planning. Keep in mind that exceptions, phaseouts, and special rules may apply.
Standard Deduction Amounts for 2026
The standard deduction amounts for 2026 are as follows:
- Single and married filing separately: $16,100
- Head of household: $24,150
- Married filing jointly: $32,200
Additional Standard Deduction
Taxpayers who are age 65 or older and/or blind may claim an additional standard deduction:
- $2,050 per qualifying taxpayer
- $1,650 per spouse if married
If a taxpayer is both 65 or older and blind, the additional amount is doubled.
Itemized Deduction Limits
Several itemized deductions are subject to limits or special rules in 2026:
Casualty Losses
- Deductible only for losses related to federally declared disasters or state-declared disasters (new for 2026)
Charitable Contributions
- New for 2026: Charitable deductions are subject to a 0.5% of AGI floor
Mortgage Interest
- Interest is deductible on qualified mortgage debt up to $750,000
Medical Expenses
- Deductible expenses must exceed 7.5% of adjusted gross income (AGI)
State and Local Taxes (SALT)
- Deduction capped at $40,400
Overall Limitation for High-Income Taxpayers
- New for 2026: For taxpayers in the 37% tax bracket, itemized deductions generally provide a tax benefit equivalent to the 35% bracket
Retirement Plan Contribution Limits
Retirement savings limits increase again for 2026:
IRAs
- Traditional and Roth IRA contributions: $7,500
- Catch-up contributions (age 50 or older): $1,100
Employer-Sponsored Plans
- 401(k), 403(b), and 457 deferrals: $24,500
- Catch-up contributions (age 50 or older): $8,000
- Additional catch-up (ages 60–63): $3,250
SIMPLE Plans
- SIMPLE deferrals: $17,000
- Catch-up contributions (age 50 or older): $4,000
- Additional catch-up (ages 60–63): $1,250
Other Retirement Limits
- Defined contribution plan limit: $72,000
- Defined benefit plan annual benefit limit: $290,000
Other Tax-Advantaged Savings Limits
Several savings vehicles also see updated contribution limits:
- Health Savings Accounts (HSA):
- $4,400 for individual coverage
- $8,750 for family coverage
- Health FSA: $3,400
- Child and dependent care FSA: $7,500
- Trump account contributions: $5,000
Estate and Gift Tax Limits
Estate planning figures for 2026 include:
- Gift and estate tax exemption: $15 million
- Generation-skipping transfer tax exemption: $15 million
- Annual gift tax exclusion: $19,000 (unchanged from 2025)
Planning Ahead for the 2026 Tax Year
These figures represent only some of the limits that may impact your 2026 tax situation. Understanding how these changes apply to your personal circumstances can help you make informed financial and tax planning decisions. To learn more and start planning for the year ahead, contact us.