WHAT’S NEW FOR 2026

Tax20262025
Business Taxes
Bonus depreciation (new or used assets in service after 1/19/25, 40% in 2025 prior to this date)100%40/100%
C-Corporation Tax Rates21%21%
Qualified Business Income (QBI) Deduction – limitation is phased in for joint filers with taxable income exceeding $403,500 and $201,750 for single filers20% of QBI20% of QBI
Net Operating Loss Deductions80%80%
Mileage Rate72.5¢ 70.0¢
Tax-free parking and transit passes per month – Employee tax-free benefit$340 $325
Individual Income Taxes
Qualified dividends & capital gains tax 2025 taxable income limits, increased by 1% for 2026:
MFJ < $98,900; Single < $49,4500%0%
MFJ < $613,700; Single < $49,451 15%15%
MFJ =/> $613,700; Single =/> $545,500 20%20%
Standard deduction if:
Married Filing Join$32,200 $31,500
Single $16,100 $15,750
Head of Household$24,150$23,625
Top Individual Tax Bracket37.0%37.0%
Estimate Tax “Safe Harbor” (% of prior year’s tax)110%110%
HSA
Individual – (55+ is an additional ($1,000)$4,400$4,300
Family – (55+ is an additional ($1,000) $8,750 $8,550
Retirement Plans
Maximum Compensation Limit$360,000 $350,000
Maximum Contribution to employee account – $80,000 w/ catch-up (ages 50-59), $83,250 super catch-up (ages 60-63) contributions $72,000$70,000
401 (K) maximum employee contribution – $32,500 ages 50+, $35,750 ages 60-63$24,500$23,500
Simple plan contribution limit – $21,000 if age 50 by end of year $17,000$16,500
IRA contribution limit – $8,600 if age 50 by end of year (RMD for 2026 is age 73)$8,000$7,500
Social Security Tax – Employee6.2%6.2%
Medicare Tax1.45% 1.45%
Surtax on lesser of net investment income or MAGI above $250K joint, $200k single3.8%3.8%
Surtax on earned income, based on excess of $250K joint, $200K single0.90% 0.90%
Social Security taxable wage base$184,500 $176,100
Maximum earnings before Social Security benefits reduced:
Before full retirement age (between ages 62 & 67) $24,480$23,400
Year of full retirement age (age 67)$65,160 $62,160
After full retirement age (over age 67)No Limit No Limit
Social Security benefits increased2.8%2.5%
Maximum Social Security benefits per month $5,251 $5,108
Estate and Gift Taxes
Annual gift tax exclusion$19,000$19,000
Estate or Gift tax exemption upon Death$15,000,000$13,990,000