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2026 Tax Limits
The 2026 Federal tax tables are now available and ready to support accurate payroll processing for the new year. These updates include all required federal tax changes applicable for 2026 to ensure employee withholdings and employer taxes are calculated correctly from the first payroll of the year.
Olivia Sanchez
January 07, 2026
TAX RATE | SINGLE or MARRIED FILING SEPERATELY | MARRIED FILING JOINT RETURNS | HEAD HOUSEHOLD |
10% | $0 to $12,400 | $0 to $24,800 | $0 to $17,700 |
12% | $12,400 to $50,400 | $24,800 to $100,800 | $17,700 to $67,450 |
22% | $50,400 to $105,700 | $100,8000 to $211,400 | $67,450 to $105,700 |
24% | $105,700 to $201,775 | $211,400 to $403,550 | $105,700 to $201,750 |
32% | $201,775 to $256,225 | $403,550 to $512,450 | $201,750 to $256,200 |
35% | $256,225 to $640,600 | $512,450 to $768,700 | $256,200 to $640,600 |
37% | $640,600 or more | $768,700 or more | $640,600 or more |
FILING STATUS | STANDARD DEDUCTION |
Single or Married, filing separately | $16,100 |
Head of household | $24,150 |
Married, filing jointly and surviving spouses | $32,200 |
Child Tax Credit per child | $2,200 |
FICA on Taxable income up to $160,200 | PERCENTAGE WITHHELD | MAXIMUM TAX PAYABLE | MEDICARE on all Taxable income | PERCENTAGE WITHHELD |
Employer pays | 6.2% | $11,439.00 | Employer pays | 1.45% |
Employee pays | 6.2% | $11,439.00 | Employee pays | 1.45% + 0.9% on wages over $200,000 (single) or $250,000 (joint) |
Self-employed pays | 12.4% | $22,878.00 | Self-employed pays | 2.90% + 0.9% on self-employment income over $200,000 (single) or $250,000 (joint) |
FLEXIBLE SPENDING ACCTs (FSA) Health Care includes limited purpose FSA | MAXIMUM CONTRIBUTION | FLEXIBLE SPENDING ACCTs (DC-FSA) Dependent Care | MAXIMUM CONTRIBUTION | HEALTH SAVINGS ACCOUNTS (HSA) with HDHP PLANS | MAXIMUM CONTRIBUTION |
Employee Salary deferral | $3,400 | Employee Salary deferral (Single & Married filing jointly) | $7,500 | Employee Only Coverage | $4,400 |
Employer Match (if no EE contrib.) | - | Employee Salary deferral (Married filing separately) | $3,750 | Family Coverage | $8,750 |
Carry over amount (2.5 month grace period to spend) | $680 |
|
| Catch-up 55+ by 12/31 | $1,000 |
RETIREMENT TYPE | MAX. CONTRIBUTION LIMIT | CATCH-UP (50+) | MAX. COMPENSATION TAKEN INTO ACCOUNT |
|---|---|---|---|
SEP IRA | The lesser of 25% of comp or $72,000 | N/A | Employer contributions cannot take into account compensation in excess of $360,000 |
SIMPLE IRA | $17,000 | $4,000 | If matching contributions, up to 3% of employee compensation. If non-elective contribution (2% to 10%), employee compensation for calculation capped at $360,000, generally subject to a maximum $5,300 |
DEFINED BENEFIT PLAN | Individual benefit limited to the lesser of: 100% of avg. comp in highest 3 consecutive calendar years, or $290,000 | N/A | Compensation for benefit calculation capped at $360,000 or lower limit defined in the plan |
403 (b), 570(b), Roth, 401 (k) | $24,500 | $8,000 | Employer contributions cannot take into account compensation in excess of $360,000 |