{"id":70572,"date":"2025-11-21T11:03:48","date_gmt":"2025-11-21T17:03:48","guid":{"rendered":"https:\/\/taxprocenter.proconnect.intuit.com\/?p=70572"},"modified":"2026-01-05T12:04:44","modified_gmt":"2026-01-05T18:04:44","slug":"annual-irs-inflation-adjustments-ty2025-and-ty2026","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/annual-irs-inflation-adjustments-ty2025-and-ty2026\/","title":{"rendered":"Annual IRS inflation adjustments: TY2025 and TY2026"},"content":{"rendered":"\n

The following chart outlines the year-over-year inflation adjustments on some higher impact provisions of the tax code. You can refer to these figures in planning for tax year 2026, and consider sharing with your individual and business tax clients. Also refer to the resources at the bottom for additional adjustments.<\/p>\n\n\n\n

IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill<\/a><\/p>\n\n\n\n

401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500<\/a><\/p>\n\n\n\n

<\/td>Tax Year 2025<\/strong><\/td>Tax Year 2026<\/strong><\/td><\/tr>
Standard deduction<\/td>Married filing jointly: $31,500

Single taxpayers and married individuals filing separately: $15,750

Heads of households: $23,625<\/td>		Married filing jointly: $32,200

Single taxpayers and married individuals filing separately: $16,100

Heads of households: $24,150<\/td><\/tr>
Personal exemption<\/td>$0<\/td>$0<\/td><\/tr>
Tax rates and brackets<\/td>Top rate is 37 percent for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly).

35 percent, for incomes over $250,525 ($501,050 for married couples filing jointly)

32 percent for incomes over $197,300 ($394,600 for married couples filing jointly)

24 percent for incomes over $103,350 ($206,700 for married couples filing jointly)

22 percent for incomes over $48,475 ($96,950 for married couples filing jointly)

12 percent for incomes over $11,925 ($23,850 for married couples filing jointly)

Lowest rate is 10 percent for incomes of single individuals with incomes of $11,925 or less ($23,850 for married couples filing jointly)<\/td>		Top rate is 37 percent for individual single taxpayers with incomes greater than $640,600 ($768,700 for married couples filing jointly).

35 percent, for incomes over $256,225 ($512,450 for married couples filing jointly

)32 percent for incomes over $201,775 ($403,550 for married couples filing jointly)

24 percent for incomes over $105,700 ($211,400 for married couples filing jointly)

22 percent for incomes over $50,400 ($100,800 for married couples filing jointly)

12 percent for incomes over $12,400 ($24,800 for married couples filing jointly)

Lowest rate is 10 percent for incomes of single individuals with incomes of $12,400 or less ($24,800 for married couples filing jointly)<\/td><\/tr>
Alternative minimum tax exemption<\/td>$88,100 for single individuals and begins to phase out at $626,350

$137,000 for married couples filing jointly and begins to phase out at $1,252,700<\/td>		$90,100 for single individuals and begins to phase out at $500,000

$140,200 for married couples filing jointly and begins to phase out at $1,000,000<\/td><\/tr>
Penalty for not maintaining minimum essential health <\/td>$0<\/td>$0<\/td><\/tr>
Dollar limitation for employee salary reductions for contributions to health flexible spending arrangements<\/td>$3,300<\/td>$3,400
<\/td><\/tr>
Adjusted gross income amount used by joint filers to determine the reduction in the Lifetime Learning Credit<\/td>$160,000<\/td>$160,000<\/td><\/tr>
Maximum credit allowed for adoptions<\/td>$17,280<\/td>$17,670 (the amount of credit that may be refundable is $5,120)<\/td><\/tr>
Foreign earned income exclusion<\/td>$130,000<\/td>$132,900<\/td><\/tr>
Basic exclusion amount for estates of decedents<\/td>Estates of decedents who die during 2025: $13,990,000<\/td>Estates of decedents who die during 2025: $15,000,000<\/td><\/tr>
Annual exclusion for gifts<\/td>$19,000<\/td>$19,000<\/td><\/tr>
Standard mileage rates for the use of a car (also vans, pickups or panel trucks)<\/td>67 cents per mile driven for business use

21 cents per mile driven for medical or moving purposes

14 cents per mile driven in service of charitable organizations<\/td>		72.5 cents per mile driven for business use

20.5 cents per mile driven for medical purposes

20.5 cents per mile driven for moving purposes for certain active-duty members of the Armed Forces (and now certain members of the intelligence community)

14 cents per mile driven in service of charitable organizations<\/td><\/tr>
Monthly limit on qualified transportation fringe benefits & qualified parking<\/td>$325<\/td>$340<\/td><\/tr>
Contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government\u2019s Thrift Savings Plan <\/td>$23,500<\/td>$24,500<\/td><\/tr>
Catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government\u2019s Thrift Savings Plan<\/td>$7,500<\/td>$8,000<\/td><\/tr>
Limit on annual contributions to an IRA <\/td>$7,000<\/td>$7,500<\/td><\/tr>
Catch-up contribution limit for individuals aged 50 and over (IRA)<\/td>$1,000<\/td>$1,100<\/td><\/tr>
If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income<\/td>For single taxpayers covered by a workplace retirement plan, the phase-out range is: $79,000 to $89,000

For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is: $126,000 to $146,000

For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains: $0 to $10,000<\/td>		For single taxpayers covered by a workplace retirement plan, the phase-out range is: $81,000 to $91,000

For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is: $129,000 to $149,000

For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains: $0 to $10,000<\/td><\/tr>
For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple\u2019s income is between: <\/td>$236,000 and $246,000<\/td>$242,000 and $252,000<\/td><\/tr>
Income phase-out range for taxpayers making contributions to a Roth IRA:<\/td>For singles and heads of household: $150,000 to $165,000

For married couples filing jointly, the income phase-out range is: $236,000 to $246,000

The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains: $0 to $10,000<\/td>		For singles and heads of household: $153,000 to $168,000

For married couples filing jointly, the income phase-out range is: $242,000 to $252,000

The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains: $0 to $10,000<\/td><\/tr>
Income limit for the Saver\u2019s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers<\/td>Married couples filing jointly: $79,000

Heads of household: $59,250

Singles and married individuals filing separately: $39,500<\/td>		Married couples filing jointly: $80,500

Heads of household: $60,375

Singles and married individuals filing separately: $40,250<\/td><\/tr>
SIMPLE retirement contribution limit<\/td>$16,500<\/td>$17,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Resources<\/p>\n\n\n\n