Tax Rates
Federal income tax brackets, standard deduction, capital gains thresholds, and retirement plan limits for 2026 and 2025 — transcribed from the IRS source documents.
2026 tax year — for planning now
| Rate | Single | Married Filing Jointly | Head of Household | Married Filing Separately |
|---|---|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 | $0 – $17,700 | $0 – $12,400 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 | $17,700 – $67,450 | $12,400 – $50,400 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 | $67,450 – $105,700 | $50,400 – $105,700 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 | $105,700 – $201,750 | $105,700 – $201,775 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 | $201,750 – $256,200 | $201,775 – $256,225 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 | $256,200 – $640,600 | $256,225 – $384,350 |
| 37% | $640,600+ | $768,700+ | $640,600+ | $384,350+ |
| Filing Status | Amount |
|---|---|
| Single | $16,100 |
| Married Filing Separately | $16,100 |
| Married Filing Jointly | $32,200 |
| Head of Household | $24,150 |
| Filing Status | 0% applies up to | 15% applies up to | 20% above |
|---|---|---|---|
| Single | $49,450 | $545,500 | $545,500 |
| Married Filing Jointly | $98,900 | $613,700 | $613,700 |
| Head of Household | $66,200 | $579,600 | $579,600 |
| Married Filing Separately | $49,450 | $306,850 | $306,850 |
Those thresholds are measured against taxable income, not just the gain. A long-term gain that would be taxed at 0% on its own can land in the 15% band because of your salary. This is the single most common reason a sale that “shouldn’t have been taxable” generates a bill.
2025 tax year — for the return you file by April 2026
| Rate | Single | Married Filing Jointly | Head of Household | Married Filing Separately |
|---|---|---|---|---|
| 10% | $0 – $11,925 | $0 – $23,850 | $0 – $17,000 | $0 – $11,925 |
| 12% | $11,925 – $48,475 | $23,850 – $96,950 | $17,000 – $64,850 | $11,925 – $48,475 |
| 22% | $48,475 – $103,350 | $96,950 – $206,700 | $64,850 – $103,350 | $48,475 – $103,350 |
| 24% | $103,350 – $197,300 | $206,700 – $394,600 | $103,350 – $197,300 | $103,350 – $197,300 |
| 32% | $197,300 – $250,525 | $394,600 – $501,050 | $197,300 – $250,500 | $197,300 – $250,525 |
| 35% | $250,525 – $626,350 | $501,050 – $751,600 | $250,500 – $626,350 | $250,525 – $375,800 |
| 37% | $626,350+ | $751,600+ | $626,350+ | $375,800+ |
| Filing Status | Amount |
|---|---|
| Single | $15,750 |
| Married Filing Separately | $15,750 |
| Married Filing Jointly | $31,500 |
| Head of Household | $23,625 |
Try the numbers
Each of these uses the year you picked at the top.
2026 retirement plan limits
These are the numbers most worth acting on before December 31, and the ones I get asked about most — particularly by physicians with both a W-2 and 1099 income, where a second plan is often available and unused.
| Plan | 2026 Limit | 2025 |
|---|---|---|
| 401(k) / 403(b) / 457(b) elective deferral | $24,500 | $23,500 |
| — catch-up, age 50+ | $8,000 | $7,500 |
| — catch-up, ages 60–63 | $11,250 | $11,250 |
| Total additions to a defined contribution plan — §415(c) | $72,000 | $70,000 |
| Defined benefit annual benefit — §415(b) | $290,000 | $280,000 |
| Traditional / Roth IRA | $7,500 | $7,000 |
| — IRA catch-up, age 50+ | $1,100 | $1,000 |
| SIMPLE plan salary reduction | $17,000 | $16,500 |
| Roth catch-up wage threshold | $150,000 | $145,000 |
| Highly compensated employee threshold | $160,000 | $160,000 |
| Key employee threshold — §416(i)(1)(A)(i) | $235,000 | $230,000 |
| Limit | Married Filing Jointly | Single / Head of Household |
|---|---|---|
| Traditional IRA deduction, if covered by a workplace plan | $129,000 | $81,000 |
| Roth IRA contribution | $242,000 | $153,000 |
The §415(c) figure is the one people miss. It caps everything going into a single plan — your deferrals, the employer match, and profit sharing. If you have a W-2 job and self-employment income on the side, your elective deferral is shared across plans but the §415(c) limit generally is not, which is why a solo 401(k) alongside a hospital 403(b) is often worth setting up. Worth a conversation before year end rather than after.
2026 payroll thresholds
These matter most if you own an entity and run your own payroll, and they are the numbers behind the S-corporation salary question.
| Item | 2026 | 2025 |
|---|---|---|
| Social Security wage base — earnings above it are not subject to the 6.2% tax | $184,500 | $176,100 |
| Social Security rate, employee (matched by the employer) | 6.2% | 6.2% |
| Medicare rate, employee (matched by the employer) | 1.45% | 1.45% |
| Additional Medicare tax, employee only, above $200,000 single / $250,000 joint | 0.9% | 0.9% |
| Section 179 expensing cap | $2,560,000 | $2,500,000 |
| — phase-out begins once property placed in service exceeds | $4,090,000 | $4,000,000 |
The wage base is the reason the S-corporation salary conversation changes shape at higher incomes. Below $184,500, moving a dollar from salary to distribution saves the full 15.3%. Above it, Social Security has already stopped, so the only saving left is the 2.9% Medicare piece — plus the 0.9% additional Medicare tax if you are over those thresholds. It is a real saving, but it is not the number people quote. More on what “reasonable” actually has to mean.
Wage base source: SSA contribution and benefit base. Section 179 figures: Rev. Proc. 2025-32 §4.24.
A note on how to read any of this
Brackets are marginal. Only the income that falls inside a bracket is taxed at that bracket’s rate. A raise that moves you into the 32% bracket does not tax your whole income at 32% — it taxes the portion above that threshold at 32%, and everything below it exactly as before. Your marginal rate is what the next dollar costs, and it is the number that matters for a decision at the edge: an extra shift, a bonus, a conversion. Your effective rate — total tax divided by total income — is always lower, and it is the number that tells you what you actually paid.
If a chart here changes a decision you are about to make, that is a good sign it is worth a conversation first. I wrote about the bracket question in more detail here.
Read out of Rev. Proc. 2025-32 in September 2026. Current for tax years 2025 and 2026. If you are relying on one, confirm it at the source.
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