U.S. federal tax & benefit limits
Money limits
in one place.
Federal tax brackets, contribution limits and benefit thresholds for 2026 and 2027.
Explore the limits ↓Federal Tax Calendar
- 2026 estimated tax
- 1st
- Apr. 15, 2026
- 2nd
- Jun. 15, 2026
- 3rd
- Sep. 15, 2026
- 4th
- Jan. 15, 2027
- 2027 estimated tax
- 1st
- Apr. 15, 2027
- 2nd
- Jun. 15, 2027
- 3rd
- Sep. 15, 2027
- 4th
- Jan. 18, 2028
- Apr. 15, 2027File or request an extensionPayment also dueTax year 2026
- Oct. 15, 2027Extended return dueTax year 2026
- Dec. 31, 2027Year-end deadlinesTax year 2027
- Apr. 18, 2028Expected filing deadlineTax year 2027
- Oct. 16, 2028Expected extended deadlineTax year 2027
Income Tax
Standard Deduction
This fixed deduction reduces taxable income when you do not itemize. The base amount depends on filing status. Dependents and filers who are 65 or older or blind can have different amounts.
| Standard deduction | 2026 | 2027 |
|---|---|---|
| Single / married separately | $16,100 | $16,600 |
| Joint / surviving spouse | $32,200 | $33,200 |
| Head of household | $24,150 | $24,925 |
| Additional age or blindness amount, generally | $1,650 per qualifying condition | $1,700 per qualifying condition |
| Additional age or blindness amount, unmarried and not surviving spouse | $2,050 per qualifying condition | $2,100 per qualifying condition |
| Dependent standard deduction formula | Greater of $1,350 or earned income + $450, capped at regular standard deduction | Greater of $1,400 or earned income + $500, capped at regular standard deduction |
Long-term capital gains and qualified dividends
These rates generally apply to qualified dividends and gains from investments held more than one year. Use taxable income and filing status to read the ceilings. For single filers, the 0% ceiling rises from $49,450 in 2026 to $51,050 in 2027.
Taxable-income ceilings. The 20% rate generally applies above the 15% ceiling.
| Filing status | 0% ceiling | 15% ceiling |
|---|---|---|
| Single | $51,050 | $563,200 |
| Joint / surviving spouse | $102,100 | $633,600 |
| Head of household | $68,350 | $598,400 |
| Married separately | $51,050 | $316,800 |
| Estates and trusts | $3,400 | $16,750 |
Alternative minimum tax
AMT is a parallel federal tax calculation that adds back some deductions, such as state and local taxes. You generally owe extra tax if the AMT calculation exceeds your regular tax. In 2027, the exemption rises from $90,100 to $93,000 for unmarried filers and from $140,200 to $144,700 for joint filers. The 2027 phaseout starts at $515,950 and $1,031,900, respectively.
| Filing status | Exemption | Phaseout begins | Fully phased out at |
|---|---|---|---|
| Unmarried | $93,000 | $515,950 | $701,950 |
| Joint / surviving spouse | $144,700 | $1,031,900 | $1,321,300 |
| Married separately | $72,350 | $515,950 | $660,650 |
| Estates and trusts | $32,500 | $108,200 | $173,200 |
Enhanced senior deduction
For 2025 through 2028, eligible taxpayers age 65 or older can deduct up to $6,000 each, whether they itemize or take the standard deduction. Married taxpayers must file jointly. The deduction starts shrinking above $75,000 of modified adjusted gross income, or $150,000 on a joint return.
| Enhanced senior deduction | 2026 | 2027 |
|---|---|---|
| Maximum per eligible person age 65 or older | $6,000 | $6,000 |
| Maximum on joint return if both spouses qualify | $12,000 | $12,000 |
| MAGI phaseout begins, eligible non-joint filers / joint | $75,000 / $150,000 | $75,000 / $150,000 |
Available with either the standard deduction or itemized deductions. Married taxpayers must file jointly to claim it.
Net investment income tax
The 3.8% Net Investment Income Tax can apply to income such as interest, dividends, and capital gains. It applies to the lesser of net investment income or modified adjusted gross income above your filing-status threshold. The listed thresholds are unchanged for 2027.
| Net investment income tax | 2026 | 2027 |
|---|---|---|
| NIIT rate | 3.8% | 3.8% |
| MAGI threshold, joint / qualifying surviving spouse | $250,000 | $250,000 |
| MAGI threshold, married separately | $125,000 | $125,000 |
| MAGI threshold, single / head of household | $200,000 | $200,000 |
For individuals, the rate applies to the lesser of net investment income or MAGI above the applicable threshold.
Other federal thresholds
These rows cover separate rules for AMT rates, children’s investment income, dependents, educator expenses, and income earned abroad. Use the threshold for the rule that applies to you.
| Other federal thresholds | 2027 amount |
|---|---|
| Taxable excess above which 28% AMT applies, married separately | $126,250 |
| Taxable excess above which 28% AMT applies, all others | $252,500 |
| Kiddie tax statutory base amount | $1,400 |
| Qualifying relative gross-income ceiling (income must be below this amount) | $5,500 |
| Educator expense deduction | $350 |
| Foreign earned income exclusion | $137,300 |
IRS Revenue Procedure 2026-35 ↗ · IRS senior deduction ↗ · IRS NIIT guidance ↗ · IRS 2026 tax adjustments ↗
Retirement
401(k), IRA and catch-up limits
Workplace deferrals are contributions you elect from pay. The IRA limit is shared across traditional and Roth IRAs. Catch-up amounts are additional contributions available to eligible savers in the listed age groups.
| Limit or threshold | 2026 | 2027 |
|---|---|---|
| 401(k), 403(b), governmental 457(b) and TSP employee deferral | $24,500 | $25,500 |
| Traditional and Roth IRA contributions, combined | $7,500 | $7,500 |
| Workplace plan catch-up, age 50+ generally | $8,000 | $8,500 |
| Workplace plan catch-up, ages 60–63 | $11,250 | $11,750 |
| IRA catch-up, age 50+ | $1,100 | $1,100 |
IRA income phaseouts
A phaseout gradually reduces how much you can contribute directly to a Roth IRA or deduct for a traditional IRA. Use modified adjusted gross income (MAGI), filing status, and workplace coverage where relevant. For single filers, the Roth IRA range rises from $153,000–$168,000 to $158,000–$173,000 in 2027.
| IRA income phaseouts | 2026 | 2027 |
|---|---|---|
| Roth IRA, single / head of household | $153,000–$168,000 | $158,000–$173,000 |
| Roth IRA, joint | $242,000–$252,000 | $250,000–$260,000 |
| Roth IRA, married separately and lived with spouse during year | $0–$10,000 | $0–$10,000 |
| Traditional IRA deduction, single / head of household with workplace coverage | $81,000–$91,000 | $83,000–$93,000 |
| Traditional IRA deduction, joint and contributor covered at work | $129,000–$149,000 | $133,000–$153,000 |
| Traditional IRA deduction, joint and only spouse covered at work | $242,000–$252,000 | $250,000–$260,000 |
| Traditional IRA deduction, married separately with applicable workplace coverage | $0–$10,000 | $0–$10,000 |
SIMPLE and SEP plans
SIMPLE and SEP plans are retirement arrangements often used by small employers and self-employed people. The SIMPLE rows show employee contribution and catch-up limits. The SEP minimum compensation row is an eligibility threshold.
| Limit or threshold | 2026 | 2027 |
|---|---|---|
| SIMPLE employee deferral, generally | $17,000 | $17,500 |
| Certain eligible SIMPLE plans, higher deferral | $18,100 | $19,100 |
| SIMPLE catch-up, age 50+ generally | $4,000 | $4,000 |
| Certain eligible SIMPLE plans, age 50+ catch-up | $3,850 | $3,850 |
| SIMPLE catch-up, ages 60–63 | $5,250 | $5,250 |
| SEP minimum compensation for eligibility | $800 | $800 |
Employer-plan limits and thresholds
Your elective deferral is what you choose to put into the plan from pay. The annual additions cap also counts employer contributions and employee after-tax contributions. For 2027, that combined cap rises from $72,000 to $75,000 before eligible catch-ups.
| Limit or threshold | 2026 | 2027 |
|---|---|---|
| Defined contribution annual additions, before catch-up | $72,000 | $75,000 |
| Defined benefit annual benefit | $290,000 | $300,000 |
| Qualified plan compensation cap | $360,000 | $375,000 |
| Highly compensated employee threshold | $160,000 | $170,000 |
| Top-heavy key employee officer threshold | $235,000 | $245,000 |
| Prior-year employer wages above which workplace catch-up must be Roth | $150,000 | $155,000 |
Health & Workplace Benefits
Health account limits
An HSA lets eligible people with qualifying coverage save for medical expenses. The 2027 HSA contribution caps rise to $4,500 for self-only coverage and $9,000 for family coverage. The deductible and out-of-pocket rows describe the health plan itself.
| Health account limits | 2026 | 2027 |
|---|---|---|
| HSA contribution, self-only | $4,400 | $4,500 |
| HSA contribution, family | $8,750 | $9,000 |
| HSA-compatible HDHP minimum deductible, self-only / family | $1,700 / $3,400 | $1,750 / $3,500 |
| HSA-compatible HDHP out-of-pocket maximum, self-only / family | $8,500 / $17,000 | $8,700 / $17,400 |
| Direct primary care monthly fee ceiling, one person / multiple | $150 / $300 | $150 / $300 |
| Excepted benefit HRA | $2,200 | $2,250 |
| Health FSA employee salary reduction | $3,400 | $3,500 |
| Health FSA carryover, where plan allows | $680 | $700 |
| QSEHRA reimbursement, self-only / family | $6,450 / $13,100 | $6,700 / $13,550 |
| Archer MSA deductible range, self-only | $2,900–$4,400 | $3,000–$4,550 |
| Archer MSA deductible range, family | $5,850–$8,750 | $6,050–$9,050 |
| Archer MSA out-of-pocket ceiling, self-only / family | $5,850 / $10,800 | $6,050 / $11,050 |
Workplace and insurance limits
These figures cover several different rules, including amounts an employer can generally provide tax-free for certain benefits and the annual out-of-pocket ceiling for applicable health coverage.
| Workplace and insurance limits | 2027 amount |
|---|---|
| Qualified transit and vanpool, combined monthly | $350 |
| Qualified parking, monthly | $350 |
| Employer educational assistance exclusion | $5,400 |
| Employer adoption assistance exclusion | $18,250 |
| ACA general out-of-pocket ceiling, self-only / other coverage | $12,000 / $24,000 |
Eligible long-term care premiums by age
These age-based limits cap how much in qualified long-term care insurance premiums can count as medical expenses for federal tax purposes. Separate rules determine whether you can deduct those expenses.
| Eligible long-term care premiums by age | 2027 amount |
|---|---|
| 40 or younger | $500 |
| 41–50 | $945 |
| 51–60 | $1,890 |
| 61–70 | $5,030 |
| Over 70 | $6,290 |
IRS Revenue Procedure 2026-24 ↗ · IRS Revenue Procedure 2026-35 ↗ · CMS ACA cost-sharing guidance ↗ · IRS 2026 HSA limits ↗
Tax Credits & Education
Family and education amounts
Each row has its own eligibility rules. A credit reduces tax, a deduction reduces income subject to tax, and an income phaseout gradually reduces an otherwise available benefit.
| Family and education amounts | 2027 amount |
|---|---|
| Child Tax Credit maximum per qualifying child under 17 at year-end | $2,300 |
| Child Tax Credit MAGI phaseout begins, joint / other filers | $400,000 / $200,000 |
| Maximum refundable portion of Child Tax Credit | $1,800 |
| Adoption credit maximum | $18,250 |
| Maximum refundable portion of adoption credit | $5,280 |
| Adoption credit and employer assistance MAGI phaseout | $273,680–$313,680 |
| Student loan interest deduction maximum | $2,500 |
| Student loan interest MAGI phaseout, eligible non-joint filers | $90,000–$105,000 |
| Student loan interest MAGI phaseout, joint | $180,000–$210,000 |
| Savings bond education exclusion MAGI phaseout, eligible non-joint filers | $105,100–$120,100 |
| Savings bond education exclusion MAGI phaseout, joint | $157,600–$187,600 |
| ABLE base annual contribution limit | $20,000 |
| Saver’s Credit AGI ceiling for qualifying ABLE contributions, single / married separately | $41,500 |
| Saver’s Credit AGI ceiling for qualifying ABLE contributions, head of household | $62,250 |
| Saver’s Credit AGI ceiling for qualifying ABLE contributions, joint | $83,000 |
Earned Income Tax Credit
The Earned Income Tax Credit is refundable and helps eligible workers with low to moderate incomes. The maximum and phaseout depend on filing status and qualifying children. For three or more qualifying children, the maximum rises from $8,231 in 2026 to $8,496 in 2027.
Investment income above $12,600 disqualifies a taxpayer. The phaseout ranges below show where the credit starts to decline and reaches zero.
| Qualifying children | Max credit | Joint phaseout | Other eligible filers |
|---|---|---|---|
| 0 | $685 | $18,730–$27,684 | $11,210–$20,164 |
| 1 | $4,573 | $32,170–$60,787 | $24,660–$53,277 |
| 2 | $7,552 | $32,170–$68,029 | $24,660–$60,519 |
| 3 or more | $8,496 | $32,170–$72,512 | $24,660–$65,002 |
Education credits and savings accounts
Education credits can reduce tax for eligible expenses. Coverdell limits govern contributions, while the 529 rows describe how much can be withdrawn for qualifying expenses under federal rules.
| Education credits and savings accounts | 2027 amount |
|---|---|
| American Opportunity Tax Credit maximum, per eligible student | $2,500 |
| Lifetime Learning Credit maximum, per return | $2,000 |
| AOTC and LLC MAGI phaseouts, eligible non-joint / joint | $80,000–$90,000 / $160,000–$180,000 |
| Coverdell ESA annual contribution maximum, per beneficiary | $2,000 |
| Coverdell ESA contributor MAGI phaseout, non-joint / joint | $95,000–$110,000 / $190,000–$220,000 |
| 529 qualifying K–12 withdrawals, annual aggregate per beneficiary | $20,000 |
| 529 qualified higher education withdrawals | Generally limited to adjusted qualified expenses for tax-free treatment |
| Education savings bond interest exclusion | May be reduced if redemption proceeds exceed adjusted qualified expenses |
IRS Revenue Procedure 2026-35 ↗ · IRS Notice 2026-66 ↗ · IRS Child Tax Credit ↗ · IRS education benefits ↗ · 26 U.S.C. § 529 ↗
Gift & Estate
Transfer tax limits
The annual gift exclusion is the amount one donor can generally give one recipient in a year without using the lifetime gift and estate exclusion. In 2027 it rises from $19,000 to $20,000 per recipient, and the lifetime basic exclusion rises from $15 million to $15.48 million per individual.
| Transfer tax limits | 2027 amount |
|---|---|
| Annual gift exclusion, per donor per recipient | $20,000 |
| Annual exclusion for qualifying gifts to non-U.S.-citizen spouse | $201,000 |
| Federal estate and lifetime gift basic exclusion, per individual | $15,480,000 |
| Generation-skipping transfer exemption, per transferor | $15,480,000 |
| Top federal estate and gift tax rates; maximum GST rate | 40% |
| Special-use valuation maximum reduction for qualifying real property | $1,500,000 |
IRS Revenue Procedure 2026-35 ↗ · 26 U.S.C. § 2001 ↗ · 26 U.S.C. §§ 2631 and 2641 ↗
Small Business
Business tax thresholds
These limits cover different federal business rules. Section 179 concerns expensing eligible property, while qualified business income thresholds affect a deduction available to some business owners.
| Business tax thresholds | 2027 amount |
|---|---|
| Section 179 maximum deduction | $2,640,000 |
| Section 179 investment phaseout begins | $4,230,000 |
| Section 179 cap for qualifying SUVs | $33,100 |
| Cash-method gross receipts test | $33,000,000 |
| Excess business loss threshold, non-joint / joint | $264,000 / $528,000 |
| QBI threshold and phase-in endpoint, joint | $416,600–$566,600 |
| QBI threshold and phase-in endpoint, married separately | $208,325–$283,325 |
| QBI threshold and phase-in endpoint, other returns | $208,300–$283,300 |
| QBI minimum deduction for qualifying active income | $415 |
| Active QBI threshold for minimum deduction | $1,030 |
| Employer child care credit maximum, standard / eligible small business | $515,943.67 / $619,132.40 |
| Qualified small business stock indexed gain exclusion dollar limit | $15,480,000 |
| Qualified small business stock indexed issuer gross-assets threshold | $77,390,000 |
IRS mileage rates
These per-mile rates can be used to calculate eligible vehicle expenses for certain purposes. Use the rate for the type of travel and the date it occurred.
| Item | 2027 release status |
|---|---|
| Standard mileage rates | Unverified |
Disclaimer · MoneyAnnuals provides U.S. federal tax and financial figures for general informational purposes only. This information does not constitute tax, legal, or financial advice.
Social Security & Medicare
Social Security and SSI
Social Security benefits are generally based on a worker’s earnings record. Supplemental Security Income is needs-based. The earnings test can reduce retirement benefits before full retirement age, while the taxable wage maximum caps earnings subject to Social Security tax.
Medicare Part D
Part D covers prescription drugs for Medicare enrollees. The standard deductible rises from $615 to $700 in 2027. The annual out-of-pocket threshold for covered drugs rises from $2,100 to $2,400, after which you pay no cost sharing for covered Part D drugs for the rest of the year.
Medicare Parts A & B and IRMAA
IRMAA is an income-based surcharge added to Medicare Part B and Part D premiums for some enrollees. It generally uses modified adjusted gross income from two years earlier, so 2027 surcharges generally use 2025 income.
SSA 2027 fact sheet ↗ · CMS 2027 rate announcement ↗ · SSA 2026 fact sheet ↗