Written by Courtney E. Stephenson, Senior Associate, Wealth Management
2026 Tax Reference Guide
Ordinary Income Tax Brackets & Rates
As a general rule, standard income tax brackets apply to most types of income unless a specific exception exists. Ordinary income typically consists of earnings such as wages and salaries, self-employment and business income, rental income, interest, regular dividends, and capital gains from assets held for one year or less.
Long-term capital gains tax rates apply to investments held for more than one year, as well as to qualified dividends. Certain gains subject to Section 1250 recapture, such as those from depreciated real estate, are taxed at a maximum rate of 25%. Gains from collectibles, including items like artwork or coins, may be taxed at rates as high as 28%.
Tax Rate*Taxable Income
Single
Married, Filing Jointly (and Surviving Spouse)
Married, Filing Separately
Head of Household
0%
$0 – $49,450
$0 – $98,900
$0 – $49,450
$0 – $66,200
15%
$49,451 – $545,500
$98,901 – $613,700
$49,451 – $306,850
$66,201 – $579,600
20%
Over $545,500
Over $613,700
Over $306,850
Over $579,600
3.8% Net Investment Income Tax (NIIT)
This is an additional tax that applies to certain types of investment income when your income exceeds the thresholds below.
Filing Status
Single or Head of Household
Married, Filing Jointly (and Surviving Spouse)
Married, Filing Separately
Adjusted Gross Income (AGI) Limit when 3.8% NIIT Takes Effect
$200,000
$250,000
$125,000
Kiddie Tax
The kiddie tax is a U.S. tax rule that taxes a child’s unearned income (like dividends or interest) above a certain limit at the parents’ tax rate instead of the child’s lower rate. It applies to children under 18 and to full‑time students ages 18–23 who don’t provide more than half of their own support.
1. First $1,350 of unearned income is not taxed because it’s covered by the kiddie tax standard deduction.
2. Next $1,350 of unearned income is taxed at the child’s marginal tax rate.
3. Anything above $2,700 is taxed at the parents’ marginal tax rate.
Tax Deductions & Credits
Tax deductions and tax credits both help reduce what you owe, but they work in different ways. Deductions lower your taxable income, meaning you’re taxed on a smaller amount overall. Credits, on the other hand, directly reduce your tax bill dollar for dollar and can sometimes even increase your refund. Together, they can help taxpayers keep more of their money by lowering their total tax burden.
Standard Deduction
Filing Status
Deduction Limit
Single or Married Filing Separately
$16,100
Married Filing Jointly (and Surviving Spouse)
$32,200
Head of Household
$24,150
Additional Standard Deduction
Filing Status
Deduction Limit
Blind, or age 65 or older
Add $ 1,650 per person
Blind, or age 65 or older, must be unmarried and not a surviving spouse
Add $2,050
Tax Credits
Credit
Notes
Maximum Amount
Child Tax Credit
Child is under age 17; phaseout starts at $400,000 for joint filers, $200,000 for single filers (MAGI)
$2,200
Lifetime Learning Credit
Qualified education expenses; phaseout starts at $160,000 for joint filers, $80,000 for all other filers (MAGI)
$2,000
American Opportunity Credit
Qualified education expenses; phaseout starts at $160,000 for joint filers, $80,000 for all other filers (MAGI)
$2,500
Other Tax Deductions
Deduction
Notes
Amount
Charitable Donations
Non-itemizers can now take a donation deduction for cash gifts
Up to $1,000 for single filers or $2,000 for joint filers
Temporary Senior Deduction
For tax years 2025 to 2028, age 65 or older; phaseout starts at $75,000 for single filers, $150,000 for joint filers (MAGI)
Up to $6,000 for single filers; $12,000 for joint filers
Student Loan Interest Deduction
Interest on qualified education loans; phaseout starts at $175,000 for joint filers, $85,000 for all other filers (MAGI)
$2,500
Health Savings Account (HSA)
Must have coverage under a qualifying high-deductible health plan (age 55 or over can contribute an extra $1,000)
Up to $4,400 for self, Up to $8,750 for family
Tip Income Deduction
For tax years 2025 to 2028; phaseout starts at $150,000 for single filers or $300,000 for joint filers (MAGI)
Up to $25,000
Overtime Income Deduction
For tax years 2025 to 2028; phaseout starts at $150,000 for single filers or $300,000 for joint filers (MAGI)
Up to $12,500 for single filers, $25,000 for joint filers
Auto Loan Interest Deduction
For tax years 2025 to 2028; phaseout starts at $100,000 for single filers or $200,000 for joint filers (MAGI) *Brand new cars, for personal use, final assembly must occur in USA.
Up to $10,000
Itemized Deduction Limits
Beginning in 2026, high income taxpayers in the 37% bracket will see their itemized deductions reduced under a new IRS formula that cuts deductions by the lesser of 2/37 of total itemized deductions or 2/37 of the income above the 37% bracket threshold. For 2026, that bracket begins at $640,600 for single filers and $768,700 for married couples filing jointly. *Beginning in 2026, charitable giving becomes more restricted. Itemized charitable deductions will be subject to a 0.5% of AGI floor, and even high‑income taxpayers will have their charitable deductions capped at 35% of the value of the gift, even if they fall in the 37% bracket.
Deduction
Limit
Medical and dental expenses
7.5% of AGI
For tax years 2025 to 2029, taxes you paid (state, local, property, sales, etc.), phaseout starts at $505,000
$40,400, if over phase out amount reverts to $10,000
Mortgage interest and points:
Mortgage on or after 12/16/2017
$750,000
Mortgage before 12/16/2017
$1,000,000
Deduction
Limit
Charitable donations
Various limitations apply, see Pub 526*
New floor on donations that must be surpassed before taking a deduction
0.5% of AGI
Overall limit
50% of AGI
Cash donations
60% of AGI
Appreciated assets held long term
30% of AGI
Retirement Plan Contributions
Employer-Sponsored Plans
Type
Limit
Overall limit for employer-sponsored defined contribution plans (does not include 457(b) plans)
Catch-up contribution limit for age 50 and over for 401(k) and Roth 401(k) (special catch-up limits may also apply to 403(b) and 457(b) plans)
$8,000 age 50 to 59 and age 64 or older, $11,250 age 60 to 63
SIMPLE IRA and SIMPLE 401(k) plans; employee elective deferral limit
$17,000
Catch-up contribution limit for age 50 and over for SIMPLE IRA plans
$4,000 age 50 to 59 and age 64 or older, $5,250 age 60 to 63
SEP IRA plans: only employer contributions are allowed
Lesser of $72,000 or 25% of wages (20% for owners)
Catch-up contribution limit for age 50 and over for SEP IRA plans
Not allowed
Traditional IRAs & Roth IRAs
Type
Limit
Traditional IRA
$7,500
Catch-up contribution for age 50 and over
$1,100
Phaseout for those covered by an employer-sponsored plan (MAGI)
Single
$81,000 to $91,000
Married filing separately
$0 to $10,000
Married filing jointly
$129,000 to $149,000
Married filing jointly, you are not covered but your spouse is
$242,000 to $252,000
Roth IRA
$7,500
Catch-up contribution for age 50 and over
$1,100
Roth IRA income phaseout (MAGI)
Single
$153,000 to $168,000
Married filing jointly
$242,000 to $252,000
Trust, Estate & Gift Tax Brackets & Rates
Trust & Estate Ordinary Income
Tax Rates
Taxable Income
0%
Standard or Itemized Deduction Amount
10%
$0 – $3,300
24%
$3,331 – $11,700
35%
$11,701 – $16,000
37%
Above $16,000
Annual & Lifetime Gifting Limit
Type
Limit
Maximum estate & gift tax rate
40%
Annual gift tax exclusion
$19,000
Unified gift & estate tax exemption (Note: This amount also covers the generation-skipping tax)
$15,000,000 per person
Annual exclusion for gifts to noncitizen spouse
$194,000
Social Security Limits
Social Security Rules & Limits
Type
Limit
Social Security wage base
$184,500
FICA tax rate for employee
7.65%
SECA tax rate for self- employed
15.3%
Social Security earnings limits prior to full retirement age (FRA)
Younger than FRA
$24,480
The year you reach FRA
$65,160
Social Security benefits cost-of-living adjustment
2.8%
Maximum possible benefits at FRA
$4,152
Estimated average monthly benefit
$2,071
Taxation of Social Security Benefits
Social Security benefits may be taxable depending on your combined income, with up to 85% becoming taxable once you exceed long‑standing IRS income thresholds.
Single, head of household, & widower combined income of
Taxable Portion
$25,000 or less
0%
$25,001 and $34,000
Up to 50%
Over $34,000
Up to 85%
Married filing jointly combined income of
Taxable Portion
$32,000 or less
0%
$32,001 and $44,000
Up to 50%
Over $44,000
Up to 85%
Social Security Full Retirement Age
Year of Birth
Social Security FRA
1943-54
66
1955
66 and 2 months
1956
66 and 4 months
1957
66 and 6 months
1958
66 and 8 months
1959
66 and 10 months
1960 and later
67
Medicare
Premiums & Costs
Monthly Premium
Part A for those with <30 quarters of coverage
$565
Part A for those with 30-39 quarters
$311
Part B
$202.90
Part A
First 60 days (patient pays a deductible)
$1,736
Next 30 days (patient pays per day)
$434
Additional 60 lifetime reserve days (patient pay per day)
$868
After all lifetime reserve days are used, patient pays all costs.
Part B
Deductible
$283
Coinsurance
20%
Part D (Prescription Drug Plan)
Deductible
$615
25% coinsurance on next
$2,100
Out-of-pocket threshold
$2,100
Beneficiary then pays coinsurance amount for additional covered expenses.
Medicare Part B & D Income-Related Monthly Adjustment Amount (IRMAA)
You Pay
If Your 2024 MAGI Was
Premium
Part D Surcharge
Single
Married
$202.90
Your Plan premium +
$109,000 or less
$218,000 or less
$284.10
$14.50
$109,001 to $137,000
$218,001 to $274,000
$405.80
$37.50
$137,001 to $171,000
$274,001 to $342,000
$527.50
$60.40
$171,001 to $205,000
$342,001 to $410,000
$649.20
$83.30
$205,001 to $499,999
$410,001 to $749,999
$689.90
$91.00
Above $500,000
Above $750,000
This content is for informational purposes only and does not constitute tax, legal or financial advice. The data is based on sources believed to be reliable, but its accuracy cannot be guaranteed. Tax laws and regulations are complex and subject to change. Please consult with your tax advisor, attorney, or financial professional for personalized advice regarding your specific situation.
