Tax inflation adjustments and retirement limits for 2026

Stay on top of the cost-of-living changes from the IRS and other federal agencies with this guide.

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Every year, federal agencies like the Internal Revenue Service and Social Security Administration assess the impact of inflation and the current environment on their areas of oversight. Often, this results in cost-of-living adjustments (COLA), which may change tax thresholds, retirement contribution limits and other tax-advantaged plans that are inflation-adjusted by law. 

To help you plan, here are key 2026 adjustments that could affect how you save, spend and invest. As you review these numbers, an Ameriprise financial advisor is available to discuss your financial strategy and any potential adjustments to consider. 

Tax bracket adjustments 

 

2025 federal income tax brackets  

Tax bracket 

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+ 

Please note: The tax brackets above are for the 2025 tax year. 

 

2026 federal income tax brackets  

Tax bracket 

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+ 

Please note: The tax brackets above are for the 2026 tax year. They are not used to calculate 2025 taxes. 

 

General standard deduction   

Filing status 

2025 

2026 

Single 

$15,750 

$16,100 

Married filing jointly 

$31,500 

$32,200 

Head of household 

$23,625 

$24,150 

Married filing separately 

$15,570 

$16,100 

You may be eligible for an additional amount if you are 65 or older or blind. 

 

Lifetime gift and estate tax exclusion 

2025 

2026 

$13.99 million 

$15 million 

 

Annual gift tax exclusion* 

2025 

2026 

$19,000 

$19,000 (no change) 

*Per gift recipient, per year. 

 

Retirement contribution limits  

 

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

 

2025 

2026 

Elective deferral limit 

$23,500 

$24,500 

Catch-up amount for employees ages 50+* 

$7,500 

$8,000 

Catch-up amount for employees ages 60-63* 

$11,250 

$11,250 (no change) 

*Beginning in 2026, catch-up contributions to employer-sponsored plans must be made on after-tax basis, if the employee earns more than $150,000. 

 

SIMPLE retirement plans 

 

2025 

2026 

Elective deferral limit  

$16,500 

$17,000 

Catch-up amount for individuals ages 50+* 

$3,500  

$4,000 

Catch-up amount for employees ages 60-63* 

$5,250 

$5,250 (no change) 

*Beginning in 2026, catch-up contributions to employer-sponsored plans must be made on after-tax basis, if the employee earns more than $150,000. 

 

IRAs (traditional IRAs and Roth IRAs) 

The limits below are the total combined contribution amounts you can make to any IRA (traditional or Roth). 

 

 

2025 

2026 

Individuals 

$7,000  

$7,500 

Catch-up amount for individuals ages 50+ 

$1,000 

$1,100 

 

Income phase-out ranges for Roth and traditional IRAs 

The following are the modified adjusted gross income (MAGI) phase-out ranges for Roth IRAs and traditional IRAs. 

 

MAGI phase-out range – for making contributions to Roth IRAs 

 

2025 

2026 

Single/head of household 

$150,000–$165,000 

$153,000–$168,000 

Married couple filing jointly 

$236,000–$246,000 

$242,000–$252,000 

Married individual filing a separate return who makes contributions to a Roth IRA 

$0–$10,000*  

$0–$10,000* (no change) 

*Not subject to an annual cost-of-living adjustment. 

 

MAGI phase-out range – for making deductible contributions to Traditional IRAs, if covered by a plan at work 

 

2025 

2026 

Single/head of household 

$79,000–$89,000 

$81,000–$91,000 

Married couple filing jointly 

$126,000–$146,000 

$129,000–$149,000 

Individual not covered by a workplace retirement plan but is married to someone who is covered 

$236,000–$246,000 

$242,000–$252,000 

Married individual filing a separate return who is covered by a workplace retirement plan 

$0–$10,000* 

$0–$10,000* (no change) 

*Not subject to an annual cost-of-living adjustment. 

 

Health care account contribution limits 

 

Health savings accounts (HSA) 

 

2025 

2026 

Individual 

$4,300 

$4,400 

Family 

$8,550 

$8,750 

Catch up (for those 55+) 

$1,000* 

$1,000 

*Not subject to an annual cost-of-living adjustment. 

 

Health care flexible spending accounts (FSA) 

 

2025 

2026 

Maximum 

$3,300 

$3,400 

Carryover maximum 

$660 

$680 

 

Qualified charitable distribution (QCD) amounts 

 

2025 

2026 

Regular limit 

$108,000 

$111,000 

 

Social Security  

 

Social Security COLA benefit increase 

2025 

2026 

2.5% 

2.8% 

 

Maximum earnings subject to the Social Security tax 

2025 

2026 

$176,100 

$184,500 

 

Earnings limitations for retirees 

Retirees who collect Social Security retirement benefits may choose to continue working. Individuals who are younger than full retirement age, collect Social Security retirement benefits and continue to work, will have some or all their Social Security benefits reduced if they earn more than the dollar amounts below.

 

2025 

2026 

Earnings limit for workers who are younger than full retirement age (benefits reduced $1 for each $2 over the earnings limit) 

$23,400 

$24,480 

Earnings limit for people in the year they reach their full retirement age, but before the month of full retirement age (benefits reduced $1 for each $3 over the earnings limit) 

$62,160 

$65,160 

 

How might these numbers affect your financial strategy? 

Your Ameriprise financial advisor can walk you through how to take advantage of these tax adjustments considering your financial goals. 

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What changes would you recommend I make to my financial strategy given the 2026 tax-inflation adjustments? How can I take advantage of the different tax-advantaged accounts available to me? How can I contribute the maximum amount allowed by the IRS to my retirement accounts?

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1Any benefit reduction is not “lost.” Once full retirement age is attained, the monthly benefit will be increased permanently to account for the prior reduction(s). In the first year of retirement, a special rule may apply for certain individuals to allow a full Social Security check for any whole month you’re considered retired, regardless of earnings prior to retirement. 
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