The IRS has released its inflation-adjusted tax amounts for 2026, and there are several updates individuals, families, and business owners should keep on their radar. These annual adjustments influence everything from deductions to retirement planning. Reviewing the changes now can help you prepare and avoid surprises during tax time.
Increased Health Savings Account (HSA) Limits
HSA contribution limits rise in 2026 to:
- Single: $4,400
- Family: $8,750
- Excepted Benefit HRAs: $2,200
These increases allow taxpayers to set aside more pre-tax funds for medical expenses.
Updated Standard Deduction Amounts
The standard deduction will increase across filing statuses:
- Single & MFS: $16,100
- Head of Household: $24,150
- Married Filing Jointly: $32,200
- Aged/Blind Add-On: $1,650 for Single/MFS, $2,050 for MFJ and others
These adjustments help lower taxable income for households that do not itemize.
Additional Key Adjustments
Other noteworthy 2026 updates include:
- Health FSA: $3,400
- Kiddie tax unearned income threshold: $1,350
- Section 179 expensing limit: $2,650,000
- Small business revenue threshold: $32,000,000
- SEHRA reimbursement caps: $6,450 (single) and $13,100 (family)
199A QBI Deduction Changes
Pass-through business owners will see new phase-out ranges for the 20% Qualified Business Income deduction:
- Married Filing Jointly: $403,500
- Married Filing Separately: $201,775
- All Others: $201,750
If your income falls within these ranges, your QBI deduction may scale down or phase out.
Retirement Contribution Limit Increases
IRAs
- 2026 limit: $7,500
- Age 50 and/or older catch-up: $1,100
Qualified Plans (401(k), 403(b), etc.)
- Employee deferral limit: $24,500
- Catch-up (ages 50–59 & 64 and/or older): $8,000
- Enhanced catch-up (ages 60–63): $11,250
SIMPLE IRAs
- Under 25 employees: $18,100 standard; $3,850 catch-up for ages 50-59 and 64 and/or older; $5,250 for ages 60–63
- 26–100 employees with 4% match: Same as above
- Over 100 employees: $17,000 standard; $4,000 catch-up for ages 50-59 and 64 and/or older; $5,250 for ages 60–63
These increases give savers more room to build retirement security.
Plan Ahead with Confidence
While inflation adjustments happen yearly, the 2026 updates have meaningful effects on savings opportunities and tax liabilities. Knowing the numbers ahead of time allows you to plan strategically and take advantage of available tax benefits.
If you have questions about how these 2026 tax changes may affect you, your family, or your business, our NSO and Company team is here to help. Navigating new limits, deductions, and planning opportunities can feel overwhelming—but you don’t have to figure it out alone. Contact our office at 317-588-3131 to speak with a knowledgeable member of the team. We’ll walk you through your options, answer your questions, and help you prepare with confidence for the year ahead.
