Each year, tax figures are adjusted for inflation, and 2026 brings additional changes under the One Big Beautiful Bill Act, signed into law on July 4, 2025. Below is an overview of the most important updates for individuals. Note that exceptions or additional rules may apply.
Standard Deduction
- Single and married filing separately: $16,100
- Head of household: $24,150
- Married couples filing jointly: $32,200
- Additional deduction for age 65+ or blind: $2,050 ($1,650 per spouse if married). Doubled if both 65+ and blind.
Itemized Deduction Limits
Casualty Loss Deduction
Available 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
Limit set at $40,400.
Overall Limit for Higher-Income Taxpayers
New for 2026: Taxpayers in the 37% bracket will have itemized deductions capped as if they were in the 35% bracket.
Retirement Plan Limits
- Traditional and Roth IRA contributions: $7,500
- Catch-up contributions (age 50+): $1,100
- 401(k), 403(b), 457 deferrals: $24,500
- Catch-up contributions (age 50+): $8,000
- Additional catch-up (ages 60–63): $3,250
- SIMPLE deferrals: $17,000
- SIMPLE catch-up (age 50+): $4,000
- SIMPLE additional catch-up (ages 60–63): $1,250
- Defined contribution plan limit: $72,000
- Defined benefit annual limit: $290,000
Other Tax-Advantaged Savings Limits
- Health Savings Account (HSA): $4,400 individual, $8,750 family
- Health Flexible Spending Account (FSA): $3,400
- Child and dependent care FSA: $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. For personalized guidance and to begin planning for the year ahead, consult a tax professional.