2026 Federal Tax Brackets and Key Contribution Limits

Nov 27, 2025

1 min read

Download Comprehensive Federal Tax Information for 2026 updated with One Big Beautiful Bill Act

Notable increases to 401(k), 403(b), 457 Plan contributions to $24,500 and catch-up contributions over age 50 to $8,000. IRA contribution limits increased to $7,500 with catch-up contributions over age 50 to $1,100. Also, an increase in SALT (state and local taxes) up to $40,400 for AGI (Aggregate Gross income) between $505,000 to $605,000.

Tax Brackets for 2026

Below rates are applied to Ordinary Income which include wages, self-employment income, interest, short-term capital gains and non-qualified dividends (ordinary dividends - qualified dividends).

2026 Tax Brackets for Ordinary Income and Non-Qualified Dividends

The following rates are applied to Long-Term Capital Gains and Qualified Dividends. The brackets are determined after adding Ordinary Income to the long-term gains and dividends.

2026 Long-Term Capital Gains and Qualified Dividends

401(k), 403(b) 457 Plan Contribution Limits for 2026

If the employer retirement plan allows After-Tax Contributions, then the total contribution including 401(k), Roth 401(k), Employer Match (also Profit-Sharing Contributions) and After-Tax Contributions cannot exceed $72,000 for under age 50. Age 50 and above can contribute an additional $8,000. The catch-up contributions must be in Roth 401(k) if employee earned more than $145,000 from a single employer in the prior year.