09/16/2026
A lot changed in federal taxes for 2026, and some of the most useful rules are easy to miss.
The standard deduction is now $16,100 for single filers and $32,200 for married couples filing jointly. The federal estate tax exclusion is $15 million per person, and the annual gift exclusion stays at $19,000 per recipient.
Employees can defer up to $24,500 into most 401(k) plans in 2026, plus an $8,000 catch-up starting at age 50. People who turn 60 through 63 during the year may instead qualify for a special $11,250 catch-up.
One catch-up change starts this year. If your 2025 wages from the employer sponsoring your plan were over $150,000, your 2026 catch-up contributions generally have to be made as Roth, assuming the plan offers catch-ups.
People 65 and older may qualify for the enhanced $6,000 senior deduction for 2025 through 2028, or up to $12,000 for a couple where both spouses qualify. It begins phasing out above $75,000 of modified adjusted gross income for single filers and $150,000 for joint filers, and unlike the regular age-based standard deduction, you can claim it whether you itemize or not.
The SALT deduction cap rises to $40,400 for 2026, but it starts shrinking once MAGI passes $505,000. It cannot drop below $10,000.
Charitable giving gets a new rule too. Starting in 2026, people who take the standard deduction can deduct up to $1,000 of qualifying cash gifts, or $2,000 if married filing jointly.
529 plans became more flexible for K-12 costs. The annual limit doubled from $10,000 to $20,000 per beneficiary, and qualifying expenses now include certain tutoring, books, testing fees, dual-enrollment costs and educational therapies, not just tuition.
And one major retirement change arrives next year. Starting with 2027 contributions, the Saver's Credit becomes the Saver's Match, a federal deposit of up to 50% of the first $2,000 you contribute, or $1,000 per person, paid into your retirement account. The full match applies up to $41,000 of MAGI for joint filers and $20,500 for single filers, and it phases out completely at $71,000 and $35,500.
The tax code keeps adding rules where a small change in income, age or account type flips the result. The number alone is rarely enough. The qualification next to it matters just as much.
P.S. Once a week, I email the best money article I read, with my take on this week's top Facebook posts and what's new on the Ways to Wealth blog. It's free, and you can sign up on the Ways to Wealth home page.
R.J. Weiss, CFP®
The content shared here is for educational and informational purposes only. It is not personalized investment, tax, legal, or financial advice. Consult a licensed professional before making decisions based on your specific situation.
