Important Tax Figures for 2026:  

Every year, the amounts allowed for various federal tax benefits are subject to inflation adjustments and legislative changes. Staying informed is essential for effective tax planning, especially when working with a Tax Planning company in Brookfield that provides proactive, year-round tax accounting solutions Brookfield residents trust. 

The following list provides important federal tax information for 2026, as compared with 2025. 

Social Security / Medicare 

• Social Security Tax Wage Base: $184,500 for 2026 (up from $176,100 for 2025) 
• Medicare Tax Wage Base: No limit for 2026 or 2025 
• Employee portion of Social Security: 6.2% for 2026 and 2025 
• Employee portion of Medicare: 1.45% for 2026 and 2025 

Individual Retirement Accounts 

• Traditional and Roth contribution limits (up to 100% of earned income): $7,500 for 2026 (up from $7,000 for 2025) 
• Catch-up contributions (age 50 and older): $1,100 for 2026 (up from $1,000 for 2025) 

Qualified Plan Limits 

• Defined contribution plan limit: $72,000 for 2026 (up from $70,000 for 2025) 
• Defined benefit plan maximum benefit: $290,000 for 2026 (up from $280,000 for 2025) 
• 401(k), 403(b), 457 salary deferrals: $24,500 for 2026 (up from $23,500 for 2025) 
• Catch-up contributions (age 50+): $8,000 for 2026 (up from $7,500 for 2025) 
• Additional catch-up (ages 60–63): $11,250 for 2026 (unchanged) 
• SIMPLE plan deferrals: $17,000 for 2026 (up from $16,500 for 2025) 
• SIMPLE catch-up (age 50+): $4,000 for 2026 (up from $3,500 for 2025) 
• Highly compensated employee threshold: $160,000 for 2026 (unchanged) 
• Key employee compensation threshold: $235,000 for 2026 (up from $230,000 for 2025) 

Driving Deductions 

• Business mileage: 72.5 cents per mile for 2026 (up from 70 cents) 
• Charitable mileage: 14 cents per mile (unchanged) 
• Medical and moving mileage: 20.5 cents per mile for 2026 (down from 21 cents) 

Business Equipment 

• Section 179 deduction maximum: $2.56 million for 2026 (up from $2.5 million) 
• Section 179 phaseout: $4.09 million for 2026 (up from $4 million) 

Business Meals 

• Deductible portion of eligible food and beverage expenses: 50% for 2026 and 2025 

Form 1099-NEC Filing Requirement 

• Independent contractor payment threshold: $2,000 for 2026 (up from $600 for 2025) 

Transportation Fringe Benefits 

• Monthly transit and commuter benefit: $340 for 2026 (up from $325) 
• Monthly qualified parking: $340 for 2026 (up from $325) 

Standard Deduction 

• Married filing jointly: $32,200 for 2026 (up from $31,500)* 
• Single / married filing separately: $16,100 for 2026 (up from $15,750)* 
• Head of household: $24,150 for 2026 (up from $23,625)* 

*Plus additional standard deduction amounts for taxpayers age 65 and older and/or blind. 

Domestic Employees 

• FICA withholding threshold: $3,000 for 2026 (up from $2,800 for 2025) 

Kiddie Tax 

• Unearned income exclusion amount: $1,350 for 2026 (unchanged) 

Estate and Gift Tax 

• Federal estate tax exemption: $15 million for 2026 (up from $13.99 million) 
• Maximum estate tax rate: 40% 
• Annual gift exclusion: $19,000 per recipient (unchanged) 

Child Tax Credit 

• Qualifying child credit: $2,200 for 2026 (unchanged) 

SALT Deduction Cap 

• Maximum deductible amount: $40,400 for 2026 (up from $40,000 for 2025) 

Planning Ahead 

In addition to inflation-adjusted amounts for 2026, the One Big Beautiful Bill Act introduces important tax law changes—some effective this year. These updates may significantly impact individuals and businesses. 

To ensure compliance and maximize tax-saving opportunities, consult a Tax Planning company in Brookfield that offers comprehensive tax accounting solutions Brookfield taxpayers can depend on for strategic filing and forward-looking planning. 

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Important Tax Figures for 2026:  

Every year, the amounts allowed for various federal tax benefits are subject to inflation adjustments and legislative changes. Staying informed is essential for effective tax planning, especially when working with a Tax Planning company in Brookfield that provides proactive, year-round tax accounting solutions Brookfield residents trust. 

The following list provides important federal tax information for 2026, as compared with 2025. 

Social Security / Medicare 

• Social Security Tax Wage Base: $184,500 for 2026 (up from $176,100 for 2025) 
• Medicare Tax Wage Base: No limit for 2026 or 2025 
• Employee portion of Social Security: 6.2% for 2026 and 2025 
• Employee portion of Medicare: 1.45% for 2026 and 2025 

Individual Retirement Accounts 

• Traditional and Roth contribution limits (up to 100% of earned income): $7,500 for 2026 (up from $7,000 for 2025) 
• Catch-up contributions (age 50 and older): $1,100 for 2026 (up from $1,000 for 2025) 

Qualified Plan Limits 

• Defined contribution plan limit: $72,000 for 2026 (up from $70,000 for 2025) 
• Defined benefit plan maximum benefit: $290,000 for 2026 (up from $280,000 for 2025) 
• 401(k), 403(b), 457 salary deferrals: $24,500 for 2026 (up from $23,500 for 2025) 
• Catch-up contributions (age 50+): $8,000 for 2026 (up from $7,500 for 2025) 
• Additional catch-up (ages 60–63): $11,250 for 2026 (unchanged) 
• SIMPLE plan deferrals: $17,000 for 2026 (up from $16,500 for 2025) 
• SIMPLE catch-up (age 50+): $4,000 for 2026 (up from $3,500 for 2025) 
• Highly compensated employee threshold: $160,000 for 2026 (unchanged) 
• Key employee compensation threshold: $235,000 for 2026 (up from $230,000 for 2025) 

Driving Deductions 

• Business mileage: 72.5 cents per mile for 2026 (up from 70 cents) 
• Charitable mileage: 14 cents per mile (unchanged) 
• Medical and moving mileage: 20.5 cents per mile for 2026 (down from 21 cents) 

Business Equipment 

• Section 179 deduction maximum: $2.56 million for 2026 (up from $2.5 million) 
• Section 179 phaseout: $4.09 million for 2026 (up from $4 million) 

Business Meals 

• Deductible portion of eligible food and beverage expenses: 50% for 2026 and 2025 

Form 1099-NEC Filing Requirement 

• Independent contractor payment threshold: $2,000 for 2026 (up from $600 for 2025) 

Transportation Fringe Benefits 

• Monthly transit and commuter benefit: $340 for 2026 (up from $325) 
• Monthly qualified parking: $340 for 2026 (up from $325) 

Standard Deduction 

• Married filing jointly: $32,200 for 2026 (up from $31,500)* 
• Single / married filing separately: $16,100 for 2026 (up from $15,750)* 
• Head of household: $24,150 for 2026 (up from $23,625)* 

*Plus additional standard deduction amounts for taxpayers age 65 and older and/or blind. 

Domestic Employees 

• FICA withholding threshold: $3,000 for 2026 (up from $2,800 for 2025) 

Kiddie Tax 

• Unearned income exclusion amount: $1,350 for 2026 (unchanged) 

Estate and Gift Tax 

• Federal estate tax exemption: $15 million for 2026 (up from $13.99 million) 
• Maximum estate tax rate: 40% 
• Annual gift exclusion: $19,000 per recipient (unchanged) 

Child Tax Credit 

• Qualifying child credit: $2,200 for 2026 (unchanged) 

SALT Deduction Cap 

• Maximum deductible amount: $40,400 for 2026 (up from $40,000 for 2025) 

Planning Ahead 

In addition to inflation-adjusted amounts for 2026, the One Big Beautiful Bill Act introduces important tax law changes—some effective this year. These updates may significantly impact individuals and businesses. 

To ensure compliance and maximize tax-saving opportunities, consult a Tax Planning company in Brookfield that offers comprehensive tax accounting solutions Brookfield taxpayers can depend on for strategic filing and forward-looking planning.