A new year means new tax figures for individuals

January 6, 2026

Many tax figures are annually adjusted for inflation and typically increase each year (or at least every few years). For 2026, some additional changes are going into effect under the One Big Beautiful Bill Act, signed into law July 4, 2025. Here’s an overview of some important limits and other tax figures for 2026. Keep in mind that exceptions or additional rules or limits may apply.

Standard deduction

Single and married filing separately: $16,100
Head of household: $24,150
Married couples filing jointly: $32,200
Additional standard deduction for those age 65 or older and/or blind: $2,050 ($1,650 per spouse if married). For taxpayers both 65 or older and blind, the additional deduction is doubled.

Itemized deduction limits

Casualty loss deduction: only for eligible losses from federally or (new for 2026) state-declared disasters
Charitable deduction floor (new for 2026): 0.5% of adjusted gross income (AGI)
Mortgage interest deduction: interest on qualified debt up to $750,000
Medical expense deduction floor: 7.5% of AGI
State and local tax deduction: $40,400
Overall limit for higher-income taxpayers (new for 2026): Generally, the tax benefit from itemized deductions for taxpayers in the 37% bracket will be as if they were in the 35% bracket

Retirement plan limits

Traditional and Roth IRA contributions: $7,500
Traditional and Roth IRA catch-up contributions for those age 50 or older: $1,100
401(k), 403(b) and 457 plan deferrals: $24,500
401(k), 403(b) and 457 plan catch-up contributions for those age 50 or older: $8,000
401(k), 403(b) and 457 plan additional catch-up contributions for those age 60, 61, 62 or 63: $3,250
SIMPLE deferrals: $17,000
SIMPLE catch-up contributions for those age 50 or older: $4,000
SIMPLE additional catch-up contributions for those age 60, 61, 62 or 63: $1,250
Contributions to defined contribution plans: $72,000
Annual benefit limit for defined benefit plans: $290,000

Other tax-advantaged savings limits

Health Savings Account (HSA) contributions: $4,400 for individuals, $8,750 for family coverage
Health Flexible Spending Account (FSA) contributions: $3,400
Child and dependent care FSA contributions: $7,500
Trump account contributions: $5,000

Estate planning

Gift and estate tax exemption: $15 million
Generation-skipping transfer tax exemption: $15 million
Annual gift tax exclusion: $19,000 (unchanged from 2025)

2026 tax planning

These are only some of the figures and limits that could affect your 2026 taxes. To learn more and begin planning for the new year, contact us.