The IRS has released the key tax numbers that are updated annually for inflation, including tax brackets, phaseouts, standard deduction, and contribution limits.  Due to rounding limitations, not all numbers have changed from last year, but tax bracket thresholds have increased by 2-3%.  The notices containing this information are available on the IRS website here and here.  Some notable callouts for those who don’t want to read all the way through the update:

• Max contributions to 401k, 403b, and 457 retirement accounts will increase by $1000 to $24,500. The catch-up (which must be Roth starting in 2026 if you earn > $150k per year) max increases to $8,000, if you’re at least age 50.  If you’re age 60-63, your max catch-up contribution is increased by 50% to $11,250.  That means the maximums by age are:
  • Under 50: $24,500
  • 50-59: $32,500
  • 60-63: $35,750
  • Over 63: $32,500
• Max contribution to a SIMPLE retirement account will increase by $500 to $17,000 (+$4,000 catch-up if you’re at least age 50 +$1250 additional catch-up if you’re 60-63).
• Max total contribution to most employer retirement plans (employee + employer contributions) increases from $70,000 to $72,000 (plus catch-ups noted above).
• Max contribution to an IRA increases from $7,000 to $7,500 (+$1,100 catch-up if you’re at least age 50).
• The income phase out for being able to make a Roth IRA contribution is $252k (married) and $168k (single). Phase out begins at $242k (married) and $153k (single).
• The standard deduction increases to $32,200 (married) and $16,100 (single) +$2050 if you’re at least age 65 and single or $1650 each if you’re married. The new OBBB “senior deduction” kicks in in 2026 as well, adding a $6k deduction per taxpayer who is at least 65, if income is less than $150k (married) or $75k (single). The new auto loan interest deduction, “no tax on tips” deduction, and “no tax on overtime” deduction also begin in 2026. They don’t require you to itemize, so they can be thought of as adding to the standard deduction. See our OBBB post for more detail.
• The personal exemption remains $0 (the Tax Cuts & Jobs Act eliminated the personal exemption in favor of a higher standard deduction and child tax credits).
• The child tax credit increases to $2,200 per child per OBBB, phasing out between $400-440k (married) and $200-220k (single).
• The maximum contribution to a Health Savings Account (HSA) will increase to $7,550 (married) and $4,400 (single).
• The annual gift tax exemption remains at $19,000 per giver per receiver.
• The lifetime gift / estate tax exemption increases to $15,000,000 per OBBB.
• Social Security benefits will rise 2.8% in 2026.  The wage base for Social Security taxes will rise to $184,500 in 2025 from $176,100.
• Updated mileage rates for 2026 are due out later this year.

You can find all of the key tax numbers, updated upon release, on the PWA website, under Resources.