Tax rates & thresholds
The numbers our planning runs on for 2026 — as set by the IRS in Rev. Proc. 2025-32, amended by the One Big Beautiful Bill Act, with retirement, HSA, Social Security, and Medicare figures from their own annual releases.
Inflation-indexed amounts change every year. This page is refreshed each November when the IRS releases the following year's adjustments, and the 2027 figures will replace these then. Rates and thresholds marked "not indexed" are fixed in statute and do not change annually.
2026 federal brackets
| Rate | Single — taxable income over | Married filing jointly — over |
|---|---|---|
| 10% | $0 | $0 |
| 12% | $12,400 | $24,800 |
| 22% | $50,400 | $100,800 |
| 24% | $105,700 | $211,400 |
| 32% | $201,775 | $403,550 |
| 35% | $256,225 | $512,450 |
| 37% | $640,600 | $768,700 |
Standard deduction for 2026: $16,100 single · $32,200 married filing jointly · $24,150 head of household.
Capital gains, NIIT, and recapture
| Item | Rate | 2026 thresholds |
|---|---|---|
| Long-term capital gains & qualified dividends — 0% bracket | 0% | Taxable income up to $49,450 single · $98,900 MFJ |
| Long-term capital gains & qualified dividends — 15% bracket | 15% | Up to $545,500 single · $613,700 MFJ |
| Long-term capital gains & qualified dividends — 20% bracket | 20% | Above the 15% ceiling |
| Net investment income tax §1411 | 3.8% | MAGI over $200,000 single · $250,000 MFJ — not indexed |
| Unrecaptured §1250 gain (straight-line building depreciation) | up to 25% | On sale of depreciated real property — not indexed |
| §1245 recapture (accelerated / cost-segregation components) | ordinary rates | To the extent of prior depreciation |
| Collectibles | 28% | Not indexed |
Withholding & alternative minimum tax
| Item | 2026 amount | Note |
|---|---|---|
| Supplemental wage withholding | 22% | On supplemental wages up to $1,000,000 for the year — not indexed |
| Supplemental wage withholding, excess | 37% | On supplemental wages over $1,000,000 |
| AMT rates | 26% / 28% | 28% applies to AMT income over $244,500 ($122,250 married filing separately) |
| AMT exemption | $90,100 / $140,200 | Single / married filing jointly |
| AMT exemption phase-out begins | $500,000 / $1,000,000 | Single / MFJ — set by statute in 2025; phases out at 50 cents per dollar above |
| ISO qualifying disposition | 2 yr / 1 yr | From grant / from exercise — not indexed |
| §83(b) election window | 30 days | From transfer of property; no extension |
Retirement, HSA, Social Security, estate, Medicare
| Item | 2026 amount | Note |
|---|---|---|
| 401(k) / 403(b) / 457 elective deferral | $24,500 | Per person |
| Catch-up contribution, age 50+ | $8,000 | Ages 60–63: $11,250 |
| IRA contribution | $7,500 | Catch-up age 50+: $1,100 |
| HSA contribution — self-only / family | $4,400 / $8,750 | HDHP minimum deductible $1,700 / $3,400 |
| Social Security wage base | $184,500 | 6.2% OASDI applies up to this amount; Medicare tax has no cap |
| Estate & gift basic exclusion | $15,000,000 | Per person; GST exemption is the same amount |
| Annual gift exclusion | $19,000 | Per donee |
| Medicare IRMAA — first surcharge tier | $109,000 / $218,000 | MAGI, single / MFJ, from the 2024 return; standard Part B premium $202.90/mo |
Not indexed: rental depreciation recovery periods (residential 27.5 years, non-residential 39, land improvements 15, personal property 5 or 7); the $25,000 passive loss allowance, phasing out between $100,000 and $150,000 of MAGI; the 750-hour real estate professional test; the $3,000 capital loss deduction against ordinary income.
Sources: IRS Rev. Proc. 2025-32 and IR-2025-103 (brackets, deductions, capital gains, AMT, estate and gift); IRS Notice 2025-67 (retirement plan limits); Rev. Proc. 2025-19 (HSA); Social Security Administration 2026 COLA fact sheet (wage base); Centers for Medicare & Medicaid Services, 2026 Medicare Parts A & B Premiums and Deductibles (IRMAA).