Every number the 2026 tax year runs on — brackets, limits, thresholds, and ages — on one page, in plain English.
This is the house reference. When we model a Roth conversion, a 403(b) contribution, a capital-gain harvest, or an estate gift, these are the figures underneath the math — and when a sibling page on this site quotes a 2026 number, it quotes this one. Built for teachers, public employees, and everyone else who files. Find your section below; the tables do the talking.
By Sean Anees Saifi · Capital Wealth · Figures per IRS and SSA annual inflation adjustments for tax year 2026
01What’s New in 2026The changes from 2025 that move real money
Four numbers moved. Here’s where.
The IRS re-indexes most of these figures for inflation every fall, and the annual drift is where quiet planning money lives: a higher standard deduction means less income taxed at all, a higher contribution limit means another $1,000 of salary can disappear into a 403(b) before the tax line sees it. The four that matter most this year are below; the full detail for each lives in its own section.
$32,200
Standard deduction, married filing jointly. $16,100 single, $24,150 head of household.
$24,500
401(k) / 403(b) / 457(b) limit — up $1,000 from 2025’s $23,500.
$7,500
IRA limit, Traditional or Roth — unchanged, with a $1,100 catch-up at 50+.
$184,500
Social Security wage base — the 6.2% tax stops here, up from $176,100.
Standard deduction — 2025 vs 2026
Filing status
2025
2026
Single
$15,750
$16,100
Married, filing jointly
$31,500
$32,200
Head of household
$23,625
$24,150
What this meansA higher standard deduction means less of your income is subject to tax. Unless your itemized deductions — mortgage interest, property taxes, charitable donations — exceed these amounts, you’ll use the standard deduction.
Retirement contribution limits — the short version
401(k) / 403(b) / 457(b): $24,500 (up from $23,500)
Catch-up contribution (age 50+): $8,000
Special “super catch-up” (age 60–63): $11,250 additional
SIMPLE IRA: $17,000 ($4,000 catch-up for 50+)
Traditional & Roth IRA: $7,500 ($1,100 catch-up for 50+)
Other key changes
Social Security wage base: $184,500 (up from $176,100) — the maximum income subject to Social Security tax
Annual gift tax exclusion: $19,000 per person per year (up from $18,000)
Itemized deduction limitation: the 37% tax-bracket benefit for itemized deductions is now limited to 35% — a technical change that affects high-income filers
02Federal Income Tax BracketsMarginal rates by filing status
Seven rates. Only the last dollar pays the top one.
Find your filing status and income level to see your marginal rate — the rate on your next dollar, which is the one that matters for every planning decision on this site: how much to convert to Roth, whether a deduction is worth chasing, where a capital gain lands.
Single filers
Income range
Rate
$0 to $12,400
10%
$12,400 to $50,400
12%
$50,400 to $105,700
22%
$105,700 to $201,775
24%
$201,775 to $256,225
32%
$256,225 to $640,600
35%
Over $640,600
37%
Married, filing jointly
Income range
Rate
$0 to $24,800
10%
$24,800 to $100,800
12%
$100,800 to $211,400
22%
$211,400 to $403,550
24%
$403,550 to $512,450
32%
$512,450 to $768,700
35%
Over $768,700
37%
Married, filing separately
Income range
Rate
$0 to $12,400
10%
$12,400 to $50,400
12%
$50,400 to $105,700
22%
$105,700 to $201,775
24%
$201,775 to $256,225
32%
$256,225 to $384,350
35%
Over $384,350
37%
Head of household
Income range
Rate
$0 to $17,700
10%
$17,700 to $67,450
12%
$67,450 to $105,700
22%
$105,700 to $201,750
24%
$201,750 to $256,200
32%
$256,200 to $640,600
35%
Over $640,600
37%
Trusts & estates
Income range
Rate
$0 to $3,300
10%
$3,300 to $11,700
24%
$11,700 to $16,000
35%
Over $16,000
37%
How to use these bracketsYour “marginal tax rate” is the rate you pay on your last dollar of income. If you’re single and earn $75,000, you don’t pay 22% on all of it — you pay 10% on the first $12,400, then 12% on income up to $50,400, then 22% on the remaining amount. The graduated system means the tax burden increases gradually with income.
03FICA & MedicareThe paycheck taxes — and where they stop
Payroll taxes have a ceiling. Investment surtaxes have a floor.
6.2%
Social Security (employee) on wages up to $184,500.
1.45%
Medicare (employee) on all wages — no income limit.
0.9%
Additional Medicare tax above the high-income thresholds.
3.8%
Net Investment Income Tax on investment income above the same thresholds.
Social Security tax (OASDI)
Employee rate: 6.2% of wages up to $184,500
Self-employed rate: 12.4% (you pay both employee and employer portions)
Wage base limit: $184,500 — once you earn this amount, no more Social Security tax is withheld
Medicare tax
Employee rate: 1.45% on all wages (no income limit)
Self-employed rate: 2.9% (both portions)
Additional Medicare tax: 0.9% on wages exceeding:
$200,000 (Single)
$250,000 (Married, filing jointly)
$125,000 (Married, filing separately)
Net Investment Income Tax (NIIT)
Rate: 3.8% surtax on investment income
Applies to: interest, dividends, capital gains, rental income, and other passive income
Threshold: applies to investment income above:
$200,000 (Single)
$250,000 (Married, filing jointly)
$125,000 (Married, filing separately)
For CalSTRS / CalPERS membersYour pension contributions to CalSTRS or CalPERS are typically not subject to federal income tax, but ARE subject to Social Security and Medicare taxes if you’re a public employee covered by FICA. If your position was not covered by Social Security, note that the old Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) no longer apply: the Social Security Fairness Act, signed in January 2025, repealed both, retroactive to benefits payable after December 2023. If a CalSTRS or CalPERS pension used to cut your Social Security check — or kept you from claiming a spousal or survivor benefit at all — get a fresh number before you plan around the old one. The full story is on Social Security Timing.
04Retirement Account LimitsEspecially for teachers & public employees
The ceilings on tax-advantaged saving — and who gets a higher one.
401(k), 403(b), and 457(b) plans
Contribution
2026 limit
Standard contribution
$24,500 (up from $23,500)
Catch-up contribution (age 50+)
$8,000 (unchanged)
Special catch-up (age 60–63)
$11,250 additional per year
Total maximum (age 60–63)
$43,750 ($24,500 + $8,000 + $11,250)
IRA contributions
Traditional or Roth IRA: $7,500 per year
Catch-up contribution (age 50+): $1,100
Combined limit: if you have both a Traditional and Roth IRA, your combined contributions cannot exceed $7,500
Roth IRA income limits (phaseout range)Single: $150,000–$165,000 · Married, filing jointly: $236,000–$246,000. If your income exceeds these amounts, you may not be able to contribute directly to a Roth IRA — though a “backdoor Roth” strategy may be available; we cover it on Roth & Super Roth.
Traditional IRA deductibility (active participant)Married, filing jointly (active participant in an employer plan): $129,000–$149,000. If you’re covered by a 403(b) or pension plan at work and earn above this range, your Traditional IRA deduction may be limited or eliminated. Roth contributions remain available.
SIMPLE IRA plans
Employee contribution: $17,000
Catch-up (age 50+): $4,000
SEP IRA (self-employed)
Maximum contribution: up to 25% of net self-employment income, not to exceed $72,000
Defined benefit & defined contribution plans
Defined Benefit (pension) max benefit: $290,000 per year
Defined Contribution max contribution: $72,000
Max compensation considered for contributions: $360,000
Highly compensated employee threshold: $160,000
Qualified Longevity Annuity Contracts (QLACs)
Maximum investment: $210,000 (per spouse in a joint account)
QLACs provide guaranteed lifetime income starting at age 85 and can help reduce your Required Minimum Distributions
CalSTRS / CalPERS note for teachers & public employeesYour pension contributions to CalSTRS or CalPERS are separate from your 403(b) or 457(b) plan contributions — you can typically contribute to both simultaneously. If you’re age 50 or older, you can put away up to $32,500 per year in a 403(b) ($24,500 base + $8,000 catch-up). If you’re age 60–63, you may qualify for the special $11,250 super catch-up, bringing your total to $43,750. Your employer’s matching contributions count toward these limits, so check with your HR department about how much you can contribute.
05Capital Gains & DividendsThe rates patience is paid at
Hold a year, and the rate changes.
Long-term capital gains & qualified dividends
Rate
Single filers
Married, filing jointly
0%
$0 to $49,450
$0 to $98,900
15%
$49,450 to $545,500
$98,900 to $613,700
20%
Over $545,500
Over $613,700
Why this matters for your portfolioGains from stocks held longer than one year and qualified dividends are taxed at these favorable rates — not at your ordinary income rate. If you’re in the 24% ordinary bracket with $100,000 in long-term gains, much of that gain may be taxed at 0% or 15% instead. This is one reason diversified, long-term investing is so powerful — and why the withdrawal order in Tax-Efficient Withdrawal exists.
Short-term capital gains
Short-term gains — assets held one year or less — are taxed as ordinary income at your regular bracket rate. This is why holding investments for at least a year can significantly reduce your tax bill.
06SALT & AMTThe deduction cap and the parallel tax
One caps what you deduct. The other re-runs the whole return.
State & local tax deduction (SALT)
2026 SALT cap
Amount
State income, property, and sales taxes, combined, per return year
$20,000
What this means for California residentsCalifornia has the highest state income tax rates in the nation (up to 13.3%), plus significant property taxes. Many high-earning Californians hit the SALT cap quickly. If you pay more than $20,000 in state and local taxes combined, you’re “capped” — you can’t deduct the excess. This may push some California residents toward the standard deduction rather than itemizing; the right answer is a comparison we run, not a rule of thumb.
Counts toward the cap
State and local income taxes
State and local property taxes (real property)
Sales taxes (if you elect to deduct sales tax instead of income tax)
Does NOT count
Mortgage interest
Charitable contributions
Medical expenses
Federal income taxes
Business taxes (these may be deductible separately)
Alternative Minimum Tax (AMT)
The AMT is a separate tax calculation designed to ensure high-income individuals pay at least a minimum amount of tax. 2026 exemption amounts:
Filing status
2026 AMT exemption
Single
$88,575
Married, filing jointly
$139,900
Married, filing separately
$69,950
AMT rate: 26% or 28%, depending on income level
Do you need to worry about AMT?AMT is primarily a concern for high-income earners (typically $200,000+) with significant deductions — charitable contributions, SALT, mortgage interest. Most middle-class taxpayers never encounter it. If you have significant deductions and high income, it belongs on the agenda with your tax advisor.
07Estate & Gift TaxMoving wealth during life and at death
Give $19,000 a year quietly — or $15 million over a lifetime.
Annual gift tax exclusion
Amount per person, per year: $19,000 (up from $18,000)
What this means: you can give up to $19,000 per recipient in 2026 without filing a gift tax return or using any of your lifetime exemption
Married couples: can give up to $38,000 together ($19,000 each)
Lifetime gift & estate tax exemption
Unified credit exemption: $15,000,000 per person
What this means: you can give away or leave up to $15 million to heirs without federal gift or estate tax
Portability: married couples can combine exemptions ($30 million total)
Estate tax
Highest rate: 40% on estates exceeding the exemption threshold
Who files: estates exceeding $15 million generally must file Form 706
Where estate planning actually startsFor most families the binding constraint isn’t the federal exemption — it’s beneficiary forms, titling, and the documents in Estate Planning. The exemption numbers above set the ceiling; the paperwork decides what actually happens.
08Required Minimum DistributionsWhen the IRS starts the clock
At 73, deferral ends — on the IRS’s schedule, not yours.
RMD age & rules
RMD age for 2026: age 73 (currently scheduled to increase to age 75 starting January 1, 2033)
How it’s calculated: your account balance on December 31 of the prior year, divided by an IRS life-expectancy factor
First RMD: must be taken by April 1 of the year after you turn 73
Subsequent RMDs: must be taken by December 31 each year
Penalty for missing an RMD: 25% of the amount not withdrawn (or 10% if corrected within two years)
Accounts that require RMDs
Traditional IRAs
SEP IRAs
SIMPLE IRAs
401(k), 403(b), and 457(b) plans
Inherited IRAs (different rules apply)
Accounts that do NOT
Roth IRAs (during the original owner’s lifetime)
Roth 401(k) and Roth 403(b) (while still employed and not a 5% owner)
Health Savings Accounts (HSAs)
CalSTRS / CalPERS members take noteYour pension distributions from CalSTRS or CalPERS are separate from RMDs on your 403(b) or IRA. If you have a 403(b), Traditional IRA, or other retirement account in addition to your CalSTRS or CalPERS pension, those accounts will be subject to RMDs starting at age 73. Plan ahead to make sure you can cover the RMD from your account balance.
RMD strategies
Qualified Charitable Distribution (QCD): if you’re charitably inclined, you can direct money from your IRA directly to a charity, and it counts toward your RMD without being taxed as income. The QCD limit is indexed annually ($108,000 for 2025) — confirm the current-year limit before you direct the gift
Roth conversions: consider converting Traditional IRA funds to a Roth before taking RMDs to reduce future withdrawals
Aggregation rule: if you have multiple Traditional IRAs or SEP IRAs, you can aggregate them for RMD calculation purposes
The Takeaway
None of these numbers is a strategy by itself — the strategy is where your income sits against them. The distance to the top of your bracket prices a Roth conversion; the 0% capital-gains line prices a harvest; the catch-up limits price the last working years. Bring the numbers and your situation to the same table and the moves mostly name themselves.
The numbers are the same for everyone. The plan isn’t.
Fifteen minutes, one conversation — where your income actually sits against these brackets and limits, and which of the moves above is worth running for you. Whether you’re a CalSTRS teacher, a CalPERS employee, or neither, that’s where Discovery starts.
Figures per IRS and Social Security Administration inflation adjustments for tax year 2026; WEP/GPO repeal per the Social Security Fairness Act (2025). Tax law changes; confirm current figures before acting. All analysis is for informational purposes only and does not constitute tax or investment advice. Consult a licensed tax professional or financial advisor before making decisions. Disclosures · Privacy
Capital Wealth · The Reference