Comprehensive Key Numbers

Key Takeaways

Here are a few of the major changes that could be beneficial to you: 

• The Internal Revenue Service announced the tax year 2026 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Details are in Revenue Procedure 2025-32.
• Each year the Internal Revenue Service announces cost-of-living adjustments (COLA) affecting dollar limitations for pension plans and other retirement-related items for the upcoming tax year. For 2026, details are in Notice 2025-67, posted on IRS.gov.
• Medicare Part B & D premiums change each year, and these are also effective in January.
• Expanded limits on retirement savings accounts: The elective deferral limits for 401(k) plans, 403(b) plans, and 457(b) plans increase for 2026 to $24,500, up from $23,500 for 2025. The limit on annual contributions to a Traditional or Roth IRA increased to $7,500 from $7,000.
• Increased standard deduction: The standard deduction for married couples filing jointly for tax year 2026 rises to $32,200, an increase of $700 from tax year 2025. For single taxpayers, the standard deduction rises to $16,100 for 2026, an increase of $350 from 2025.
• Higher alternative minimum exemption and lower phase-out limits: For 2026, the tax exemption amount for unmarried individuals increases to $90,100 and begins to phase out at $500,000 ($140,200 for married couples filing jointly for whom the exemption begins to phase out at $1,000,000). For comparison, the 2025 exemption amount was $88,100 and began to phase out at $626,350 ($137,000 for married couples filing jointly for whom the exemption began to phase out at $1,252,700).
• Increased estate and gift tax exemptions: For decedents who die during 2026, the basic lifetime exemption for estate, gift, and generation-skipping transfer tax increases to $15,000,000 from $13,990,000 for decedents who died in 2025. 
• Increased annual exclusion for gifts: The exclusion is unchanged from 2025 and remains at $19,000.

These are just a handful of potential savings opportunities. By using the information in this report and consulting with your tax advisor, you can begin planning now.