2026 Tax Brackets, Standard Deductions And Other Changes

The IRS recently published the last of the annual inflation updates for 2026. If you have questions about a particular amount that I do not mention here, you can likely find it in the official IRS announcements:

• Rev. Proc. 2025-32 contains most inflation adjustment figures,
• Notice 2025-67 contains figures relating to retirement accounts, and
• Rev. Proc 2025-19 contains figures relating to health savings accounts (HSAs).

Single 2026 Tax Brackets

Married Filing Jointly 2026 Tax Brackets

Head of Household 2026 Tax Brackets

Married Filing Separately 2026 Tax Brackets

Standard Deduction Amounts

The 2026 standard deduction amounts are as follows:

• Single or married filing separately: $16,100
• Married filing jointly: $32,200
• Head of household: $24,150

The additional standard deduction for people who have reached age 65 (or who are blind) is $1,650 for each married taxpayer or $2,050 for unmarried taxpayers.

IRA Contribution Limits

The contribution limit for Roth IRA and traditional IRA accounts increases to $7,500.

The catch-up contribution limit for people age 50+ increases to $1,100.

401(k), 403(b), 457(b) Contribution Limits

The salary deferral limit for 401(k) and other similar plans is increased to $24,500.

The catch-up contribution limit for 401(k) and other similar plans for people age 50+ increases to $8,000. For people who turn 60, 61, 62, or 63 in 2026, the catch-up contribution limit remains at $11,250.

The maximum possible contribution for defined contribution plans (e.g., for a self-employed person with a sufficiently high income contributing to a solo 401(k)) is increased to $72,000.

Health Savings Account Contribution Limits

For 2026, the maximum HSA contribution for somebody with self-only coverage under a high deductible health plan is $4,400. The limit for somebody with family coverage under such a plan is $8,750.

The HSA catch-up contribution limit for people age 55 and over is not inflation adjusted, so it remains at $1,000.

Qualified Charitable Distributions

For 2026, the limit for qualified charitable distributions (QCDs) for people age 70.5 and up is increased to $111,000 (per spouse, if married).

Capital Gains and Qualified Dividends

For 2026, long-term capital gains and qualified dividends face the following tax rates:

• 0% tax rate if they fall below $49,450 of taxable income if filing as single or married filing separately, $98,900 if married filing jointly, or $66,200 if head of household.
• 15% tax rate if they fall above the 0% threshold but below $545,500 if single, $613,700 if married filing jointly, $579,600 if head of household, or $306,850 if married filing separately.
• 20% tax rate if they fall above the 15% threshold.

Alternative Minimum Tax (AMT)

The AMT exemption amount is increased to:

• $90,100 for single people and people filing as head of household,
• $140,200 for married people filing jointly, and
• $70,100 for married people filing separately.

Annual Gift Tax Exclusion

For 2026 the annual exclusion for gifts remains at $19,000.

Estate Tax

The estate tax exclusion is increased to $15 million per decedent.

You need a plan

Retiring - without a plan - is simply a plan to run out of money. Your NRECA R&S Pension is not a plan. Your NRECA 401k is not a plan. Your Social Security is not a plan. Those are only pieces in the retirement planning puzzle.

At 80/20 Financial Services we specialize in helping cooperative employees plan their retirement. We can show you how to turn your 401k and your R&S lump sum into a stream of income just like when you were working while also helping you achieve your desired financial outcomes in retirement.

The consultation is free and without obligation. Contact us to set up a consultation.

For more articles about retirement planning and investing click here. 

Brian Coleman-Owner/Advisor

80/20 Financial Services is an Independent Registered Investment Advisory Firm.

We help electric cooperative employees retire with a plan, not just a portfolio.

Photo by The New York Public Library on Unsplash