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The IRS just published their 2026 inflation adjusted numbers.
Some notes:
1. Standard Deduction
In 2025, the standard deduction for a single taxpayer is $15,750 ($31,500 for married filing jointly). In 2026, the standard deduction is increasing by $350: $16,100 (single), $32,200 (mfj)
2. Brackets
2025 brackets:
10% for income $11,925 or less ($23,850 MFJ)
12% for income over $11,925 ($23,850)
22% for income over $48,475 ($96,950)
24% for income over $103,350 ($206,700)
32% for income over $197,300 ($394,600)
In 2026, the ranges are:
10% for income $12,400 or less ($24,800 MFJ)
12% for income over $12,400 ($24,800)
22% for income over $50,400 ($100,800)
24% for income over $105,700 ($211,400)
32% for income over $201,775 ($403,550)
or ~4% increase in the income ranges.
3. Capital Gains Tax
For 2026, 0% capital gains tax will apply if your taxable income is/less than $49,450 (single) or $98,900 (mfj)
4. Retirement contributions limits
The official figures haven’t been reported yet, but estimates indicate that Roth IRA contribution limits will increase by $500, and 401(k)/403(b) limits will increase by $1,000.
5. Annual gifts
The annual exclusion for gifts is not increasing for tax year 2026.
6. HSA
For 2026, participants who want to contribute to an HSA must have a deductible that is not less than $2,900 (a $50 increase), but not more than $4,400 (an increase of $100). The HSA contribution limits for 2026 are $4,400 for self-only and $8,750 for family.
7. Others
Estates of decedents who die during 2026 have an estate tax exclusion amount of $15M, up from a total of $13.99M from 2025.
For tax year 2026, the foreign earned income exclusion is $132,900 up from $130,000 for tax year 2025.
Are you sure about the 2026 brackets? The Tax Foundation says 24% brackets for married filing jointly is $211,401 to $403,550 or am I misreading the post.
Looks like what the post says
Thanks Bogdan. Very helpful.
Thanks, Bogdan. I thought it was interesting that MFJ can make $100k and still be in the 12% tax bracket. Chris
Actually MFJ >65 can “make” $148,300 in 2026 as the Std Deduction, > 65 deduction, and OBBB $12K senior deduction brings your taxable income to $100,800 (the top of the 12% bracket). Just wanted to point out that the gross income cap is much higher. Such a deal!😁
And since SS benefits are taxed at 85% at most, your gross income could be even higher. For example, a couple over 65 with $80,000 in SS benefits could have another $80,000 in ordinary income (assume pension or IRA withdrawals) and still meet the requirements for the bonus deduction and stay in the 12% bracket.
Amazing, isn’t it, gentlemen? I was just looking at the “6 figure” part. Chris
Thanks, Rick. I should have mentioned that. I have an 85% factor for SS incorporated into my Excel gross income/tax planning spreadsheet.
No worries, Me too.
Has the HSA catch-up amount changed for over-50?
Typically the $1K HSA per person catch up amount for those age 55 and over does not change annually and per the Fidelity website the same $1K maximum catch-up applies to 2026. You still need to meet the other criteria to be eligible to make HSA catch-up contributions.
If you want to see IRS announcement notice IR-2025-102 issued 10/9/2025 just google the announcement number. You should also be able to subscribe to future announcements should you want.
When I was over age 65 and changing from a high deductible employer plan to Medicare I waited until late in the tax year to fund HSA contributions for my wife and me to avoid the possibility of making excess HSA contributions.
I hope this helps.
Best,
Bill
Thanks