Key Financial Numbers for 2026 and What They Mean for Your Planning
Each year brings changes to important tax, retirement, and benefit thresholds. Staying aware of these updates can make a meaningful difference in your financial planning strategy, whether you are saving for retirement, managing your tax bill, or planning your household budget.
Here are the major numbers and what has changed for 2026.
Federal Income Tax Brackets and Standard Deduction
The seven federal tax brackets remain in place, but the income thresholds have increased for inflation. This means more of your income may be taxed at lower rates compared to the year before, which can help reduce your overall tax burden if your income stays the same.
- Top Tax Bracket (37%): Income over $768,700 (MFJ), $640,600 (Single)
- Standard Deduction: $32,200 (MFJ), $16,100 (Single), $24,150 (Head of Household).
Age 65+ Additional Amounts
If you or your spouse are age 65 or older or blind, you qualify for an additional standard deduction amount. These amounts increased slightly from prior years as well.
Retirement Plan Contribution Limits
Retirement accounts remain an essential part of long-term planning, and contribution limits have increased again for 2026, giving you the chance to put more away on a tax-advantaged basis.
- IRA/ Roth contributions: $7,500, $1,100 catch up for age 50+
- 401(k), 403(b), 457 plans: $24,500
- Catch-up for age 50+: $8,000
- Higher catch-up for ages 60–63: $11,250
Higher limits apply to SEP and SIMPLE IRAs as well, benefiting self-employed people and small business owners.
Social Security Updates
Social Security continues to adjust thresholds and benefits for inflation. For 2026, the maximum wage base subject to Social Security tax rises, and beneficiaries will see a cost-of-living adjustment (COLA).
- Maximum Social Security benefit: up to about $5,430 per month for those who delay claiming until age 70
- Wage base: $184,500
These changes affect both workers and retirees, particularly around planning when to claim benefits and how continued earnings impact Social Security income.
Health and Flexible Savings Accounts (HSA/FSA)
Health-related savings accounts also adjust for inflation, so if you use HSAs or FSAs as part of your tax-efficient savings strategy, 2026 brings higher contribution limits as well.
HSA/FSA contribution limits have increased to help offset rising medical costs.
- HSA Contribution Limits: $4,400 for self-only coverage and $8,750 for family coverage.
- HSA Catch-Up (Age 55+): Remains at $1,000.
- Healthcare FSA: The voluntary salary reduction limit increases to $3,400
Why These Numbers Matter
Annual adjustments like these help your planning stay aligned with economic reality.
They affect:
• Take-home pay and tax liability
• Retirement savings strategy
• Social Security timing and benefits
• Itemizing vs taking the standard deduction
Even small adjustments can add up over time, whether you are working toward retirement, optimizing your tax situation, or managing cash flow for your family.
Take time this year to review how these updated numbers affect your financial plan. If you have questions about your specific situation, 2nd Story Wealth can help you make the most of what 2026 has to offer.
Warm Regards,
Nicole
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Nicole C. Carson, CFP®, MBA
2nd Story Wealth | Founder & Wealth Advisor
Phone: (215) 714-7144| 2ndstorywealth.com
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