2026 Tax Reference Guide

Here are the key tax numbers for 2026 in one place. Bookmark this page and return anytime.

Federal Income Tax Brackets for 2026

Single Filers

• 10% on income up to $12,400
• 12% on income from $12,401 to $50,400
• 22% on income from $50,401 to $105,700
• 24% on income from $105,701 to $201,775
• 32% on income from $201,776 to $256,225
• 35% on income from $256,226 to $640,600
• 37% on income over $640,600

Married Filing Jointly

• 10% on income up to $24,800
• 12% on income from $24,801 to $100,800
• 22% on income from $100,801 to $211,400
• 24% on income from $211,401 to $403,550
• 32% on income from $403,551 to $512,450
• 35% on income from $512,451 to $768,700
• 37% on income over $768,700

Trusts and Estates

• 10% on income up to $3,300
• 24% on income from $3,301 to $11,700
• 35% on income from $11,701 to $16,000
• 37% on income over $16,000

Standard Deductions for 2026

Additional Deduction if Age 65+

• Single or Head of Household: add $2,050
• Married Filing Jointly (each spouse 65+): add $1,650 per person

Enhanced Senior Deduction (New for 2025+)

If you are age 65 or older, you may qualify for an additional $6,000 deduction on top of your standard deduction and age increase. If both spouses are 65+, that is $12,000 combined. In real dollars, a 65+ person in the 22% tax bracket saves about $1,320 in federal tax.

Child Tax Credit

• $2,200 per qualifying child under age 17
• $1,700 of this amount is refundable, meaning you may get it back as a refund even if you owe no tax

Retirement Plan Contribution Limits for 2026

401(k), 403(b), and 457 Plans

• Regular contribution limit: $24,500
• Catch-up contribution (age 50, 59 or 63+): additional $8,000
• Additional catch-up (age 60 to 63): additional $11,250 as a new opportunity to save more before retirement

SIMPLE IRA

• Regular contribution limit: $17,000
• 10% increase if employer has 100 or fewer employees: $18,100
• Catch-up contribution (age 50, 59 or 63+): additional $4,000
• Additional catch-up (age 60 to 63): additional $5,250

Traditional or Roth IRA

• Regular contribution limit: $7,500
• Catch-up contribution (age 50+): additional $1,100

SEP IRA

• Contribution limit: $72,000 (or 25% of compensation, whichever is less)

Social Security Wage Base

• $184,500 in wages subject to Social Security tax

Health & Dependent Care Accounts

Health Savings Account (HSA)

• Individual coverage: $4,400
• Family coverage: $8,750
• Catch-up contribution (age 55+): additional $1,000

Dependent Care Flexible Spending Account (FSA)

• Maximum household contribution: $7,500
• Married Filing Separately: $3,750 per person

Health Care Flexible Spending Account (FSA)

• Maximum contribution: $3,400
• Carryover amount: $680 in unused balance you can carry into next year

Estate Planning & Gift Tax (2026)

• Lifetime estate and gift tax exemption: $15,000,000 per person
• Annual gift tax exclusion: $19,000 per person per recipient. You can give this amount to as many people as you want without filing a gift tax return.
• Generation-skipping transfer exemption: $15,000,000

Capital Gains Tax Rates for 2026

Your long-term capital gains on investments held over one year are taxed at lower rates than regular income:

0% Long-Term Capital Gains Rate

• Single: $0 to $49,450
• Married Filing Jointly: $0 to $98,900

15% Long-Term Capital Gains Rate

• Single: $49,451 to $545,500
• Married Filing Jointly: $98,901 to $613,700

20% Long-Term Capital Gains Rate

• Income above the thresholds listed above

Net Investment Income Tax (Additional 3.8%)

An extra 3.8% tax applies to investment income if you exceed:

• Single: $200,000
• Married Filing Jointly: $250,000

Key Deductions & Tax Breaks

SALT Cap (State & Local Taxes)

You can deduct up to $40,000 in state and local income taxes, property taxes, and sales taxes combined.

Auto Loan Interest Deduction (New for 2026)

Interest on U.S. made vehicle loans may be deductible up to $10,000 per vehicle. This is a valuable new deduction.

No Tax on Tips (New for 2026)

Up to $25,000 in tips yearly are now tax-free. This benefits service workers, drivers, and others receiving tips.

No Tax on Overtime (Temporary through 2028)

Overtime compensation is tax-free up to:

• $12,500 for single filers
• $25,000 for married filing jointly

This applies only to income earned after January 1, 2025, and ends December 31, 2028.

Pennsylvania State Taxes

PA Flat Income Tax Rate

Pennsylvania charges a flat state income tax of 3.07% on most income. Certain income types have specific exceptions.

PA Inheritance Tax

Pennsylvania does not have an estate tax, but it does have an inheritance tax:

• 0% for spouses
• 4.5% for direct descendants such as children or grandchildren
• 12% for siblings
• 15% for others

529 Education Savings Plan Deduction

Pennsylvania allows you to deduct 529 contributions on your state return up to the IRS limit. This reduces your PA income tax while you save for education.

Using These Numbers

These numbers are tools to help you keep more of what you earn. Different rules apply to different people, so knowing which ones apply to you is what matters.

Numbers are helpful, but knowing what to do with them is what counts. If you want help making the most of these rules for your situation, give PAC Financial a call. We can help you maximize retirement contributions, use the senior deduction, or plan your investments. We will walk you through it.

Call us TODAY at (717) 564-6400 for a no-pressure conversation about your 2026 tax strategy.

Important Disclosures

This guide is for educational purposes and is based on 2026 tax law as of March 2026. Tax laws can change and individual situations vary widely. This is not tax advice. Please consult with a qualified tax professional or CPA before making tax-related decisions. If you work with a financial advisor, review these numbers with them to make sure they apply to your specific situation.

PAC Financial is a financial advisory firm located in Harrisburg, PA. For specific tax planning recommendations, we recommend consulting with a tax professional or scheduling an appointment with PAC Financial.

Securities and advisory services offered through Osaic Wealth, Inc. Member FINRA/SIPC. PAC Financial is not an SEC registered investment adviser. State limitations on services apply.