The IRS and the Social Security Administration (SSA) publish new payroll tax limits each year. This guide lists the final 2026 figures from IRS Notice 2025-67 and Rev. Proc. 2025-32, plus the 2027 figures announced so far. TBA means the figure has not been released yet. The IRS usually publishes the next year’s retirement plan limits and tax brackets in October or November, and we update this page as they are released. Compensation thresholds are the income limits that define eligibility for a retirement plan. Contribution limits are the maximum amounts that an individual can contribute to a retirement account, regardless of compensation. Knowing these changes helps you process payroll accurately. Last updated October 26, 2026.
2026 and 2027 Compensation Thresholds
| Contribution Type | 2026 Limit | 2027 Limit |
|---|---|---|
| Limitation on the annual benefit under a defined benefit plan | $290,000 | TBA |
| Compensation limit for defined-contribution plans | $72,000 | TBA |
| Annual compensation limit for qualified plans | $360,000 | TBA |
| Salary threshold used in the definition of a “key employee” in a top-heavy plan | $235,000 | TBA |
| Salary threshold used in the general definition of a highly compensated employee (HCE) | $160,000 | TBA |
| Applicable dollar amount for determining the deductible amount of an IRA contribution for taxpayers who are active participants filing a joint return or as a qualifying widow(er) | $129,000 | TBA |
| Applicable dollar amount for all other taxpayers who are active participants (other than married taxpayers filing separate returns) | $81,000 | TBA |
| Applicable dollar amount for a taxpayer who is not an active participant but whose spouse is an active participant | $242,000 | TBA |
2026 and 2027 Contribution Limits
| Contribution Type | 2026 Limit | 2027 Limit |
|---|---|---|
| 401(k)/403(b)/457 Plan Employee Contribution | $24,500 | TBA |
| 401(k)/403(b)/457 Plan Catch-Up Contribution | $8,000 | TBA |
| 401(k)/403(b)/457 Plan Catch-Up Contribution (60-63 Years Old) | $11,250 | TBA |
| 401(k)/403(b)/457 Plan Total Contribution (Under 50 Years Old) | $72,000 | TBA |
| 401(k)/403(b)/457 Plan Total Contribution (50+ Years Old) | $80,000 | TBA |
| 401(k)/403(b)/457 Plan Total Contribution (60-63 Years Old) | $83,250 | TBA |
| Traditional IRA Contribution | $7,500 | TBA |
| Traditional IRA Catch-Up Contribution | $1,100 | TBA |
| Roth IRA Contribution | $7,500 | TBA |
| Roth IRA Catch-Up Contribution | $1,100 | TBA |
| SEP-IRA Contribution | $72,000 | TBA |
| SIMPLE IRA/SIMPLE 401(k) Contribution | $17,000 | TBA |
| SIMPLE IRA/SIMPLE 401(k) Catch-Up Contribution | $4,000 | TBA |
| SIMPLE IRA/SIMPLE 401(k) Catch-Up Contribution (60-63 Years Old) | $5,250 | TBA |
| HSA Contribution (Single) | $4,400 | $4,500 |
| HSA Contribution (Family) | $8,750 | $9,000 |
| HSA, Age 55 Catch-Up | $1,000 | $1,000 |
| Healthcare FSA Contribution | $3,400 | TBA |
2026 and 2027 IRA Thresholds
| Contribution Type | 2026 Limit | 2027 Limit |
|---|---|---|
| Income Limit for IRA, Single and an Active Participant | $81,000 - $91,000 | TBA |
| Income Limit for IRA, Married and an Active Participant | $129,000 - $149,000 | TBA |
| Income Limit for IRA, Married and Spouse is an Active Participant | $242,000 - $252,000 | TBA |
| Income Limit for Roth IRA, Single | $153,000 - $168,000 | TBA |
| Income Limit for Roth IRA, Married Filing Jointly | $242,000 - $252,000 | TBA |
2026 and 2027 Retirement Thresholds
| Contribution Type | 2026 Limit | 2027 Limit |
|---|---|---|
| Annual compensation limit for eligible participants in certain governmental plans | $535,000 | TBA |
| Compensation amount regarding simple employee pensions (SEPSs) | $800 | TBA |
| Limitation concerning the qualified gratuitous transfer of qualified employer securities to an employee stock ownership plan | $65,000 | TBA |
| Definition of a control employee for fringe-benefit valuation purposes | $145,000 | TBA |
| Compensation amount for a control employee for fringe-benefit valuation purposes | $290,000 | TBA |
| Dollar limitation on premiums paid for a qualifying longevity annuity contract | $210,000 | TBA |
| Saver's Credit Income Limit (Single) | $24,250 (50%); $26,250 (20%); $40,250 (10%) | TBA |
| Saver's Credit Income Limit (Married Filing Jointly) | $48,500 (50%); $52,500 (20%); $80,500 (10%) | TBA |
2026 and 2027 Tax Provisions
| Contribution Type | 2026 Limit | 2027 Limit |
|---|---|---|
| Qualified Transportation Fringe Benefit | $340/month | TBA |
| Adoption Credit | $17,670 | TBA |
| Foreign Earned Income Exclusion | $132,900 | TBA |
2026 and 2027 Standard Deductions
| Tax Filing Status | 2026 | 2027 |
|---|---|---|
| Married Filing Jointly and Surviving Spouses | $32,200 | TBA |
| Head of Household | $24,150 | TBA |
| Single or Married Filing Separately | $16,100 | TBA |
Tax Tables: Single (2026–2027)
| Tax Rate | 2026 | 2027 |
|---|---|---|
| 10% | $12,400 or less | TBA |
| 12% | Over $12,400 | TBA |
| 22% | Over $50,400 | TBA |
| 24% | Over $105,700 | TBA |
| 32% | Over $201,775 | TBA |
| 35% | Over $256,225 | TBA |
| 37% | Over $640,600 | TBA |
Tax Tables: Married Filing Jointly and Surviving Spouses (2026–2027)
| Tax Rate | 2026 | 2027 |
|---|---|---|
| 10% | $24,800 or less | TBA |
| 12% | Over $24,800 | TBA |
| 22% | Over $100,800 | TBA |
| 24% | Over $211,400 | TBA |
| 32% | Over $403,550 | TBA |
| 35% | Over $512,450 | TBA |
| 37% | Over $768,700 | TBA |
Tax Tables: Head of Household (2026–2027)
| Tax Rate | 2026 | 2027 |
|---|---|---|
| 10% | $17,700 or less | TBA |
| 12% | Over $17,700 | TBA |
| 22% | Over $67,450 | TBA |
| 24% | Over $105,700 | TBA |
| 32% | Over $201,750 | TBA |
| 35% | Over $256,200 | TBA |
| 37% | Over $640,600 | TBA |
Tax Tables: Married Filing Separately (2026–2027)
| Tax Rate | 2026 | 2027 |
|---|---|---|
| 10% | $12,400 or less | TBA |
| 12% | Over $12,400 | TBA |
| 22% | Over $50,400 | TBA |
| 24% | Over $105,700 | TBA |
| 32% | Over $201,775 | TBA |
| 35% | Over $256,225 | TBA |
| 37% | Over $384,350 | TBA |
For more information on standard deductions, see the IRS page about Publication 501, Dependents, Standard Deduction, and Filing Information. The 2026 brackets and standard deductions come from Rev. Proc. 2025-32. The IRS has not yet published the 2027 amounts.
Social Security Wage Base and FICA Rate (2026–2027)
- The Social Security Taxable Wage Base is $184,500 for 2026 and $192,300 for 2027.
- The Social Security tax rate is 6.2% for employees and 6.2% for employers, up to the wage base. The most each pays is $11,439.00 in 2026 and $11,922.60 in 2027.
- The FICA contribution rate for Medicare is 1.45%, and is not subject to the Social Security wage base.
- The Additional Medicare tax of 0.9% continues to apply to wages exceeding $200,000 for individuals and $250,000 for married couples filing jointly.
- The cost-of-living adjustment (COLA) for Social Security benefits and SSI payments is 3.6% for 2027, up from 2.8% for 2026. Benefits will increase by 3.6% beginning with January 2027 payments.
FUTA Credit Reductions
- California: 1.2%
- U.S. Virgin Islands: 4.5%
These are the final 2025 FUTA credit reductions, published by the Department of Labor in November 2025. The standard FUTA rate is 6.0% on the first $7,000 of each employee’s wages, less a credit of up to 5.4% for paying state unemployment tax on time, which leaves an effective rate of 0.6% (up to $42 per employee). Employers in a credit reduction jurisdiction pay the extra tax with Form 940. The Department of Labor sets the 2026 reductions after November 10, 2026, and we will update this section when it publishes the list. The 2026 Form 940 is due February 1, 2027. Source: PayrollOrg report on the 2025 list.
SUTA Wage Base Updates
Each state sets its own SUTA taxable wage base, and many states change it every year. Our SUTA Wage Bases by State page lists the 2026 wage base for every state and the 2027 wage bases announced so far.
Payroll Tax FAQs
What is the Social Security wage base for 2027?
The Social Security taxable wage base is $192,300 in 2027, up from $184,500 in 2026, according to the Social Security Administration. Employees and employers each pay 6.2% Social Security tax on wages up to that amount, so the most each pays is $11,922.60. Medicare tax of 1.45% applies to all wages with no limit, and employers withhold an additional 0.9% Medicare tax on an employee’s wages above $200,000.
What is the Social Security cost-of-living adjustment for 2027?
The cost-of-living adjustment (COLA) is 3.6% for 2027, up from 2.8% for 2026. It applies to Social Security and SSI benefits beginning with January 2027 payments. The Social Security Administration announced it on October 14, 2026.
What are the 401(k) contribution limits for 2026?
For 2026, the limit on employee contributions to a 401(k), 403(b), or 457 plan is $24,500. Employees age 50 and older can add an $8,000 catch-up contribution, and employees age 60 to 63 can add $11,250. The limits come from IRS Notice 2025-67. The IRS has not yet announced the 2027 limits. It usually publishes them in October or November, and we will update this page when it does.
What are the 2026 federal income tax brackets and standard deduction?
There are seven federal brackets, from 10% to 37%. For a single filer, the 10% bracket covers taxable income up to $12,400, and the 37% bracket starts above $640,600. The 2026 standard deduction is $16,100 for single filers and married filing separately, $24,150 for heads of household, and $32,200 for married couples filing jointly and surviving spouses. These amounts come from Rev. Proc. 2025-32. The IRS has not yet published the 2027 amounts.
What are the HSA contribution limits for 2027?
For 2027, the HSA contribution limit is $4,500 for self-only coverage and $9,000 for family coverage, up from $4,400 and $8,750 in 2026. People age 55 and older can add a $1,000 catch-up contribution. A high-deductible health plan must have a deductible of at least $1,750 for self-only coverage or $3,500 for family coverage, and out-of-pocket costs capped at $8,700 or $17,400. The amounts come from Rev. Proc. 2026-24.
What is the FUTA credit reduction?
The FUTA tax rate is 6.0% on the first $7,000 of each employee’s wages, but employers receive a credit of up to 5.4% when they pay state unemployment tax on time, which leaves an effective rate of 0.6%. If a state has an unpaid federal unemployment loan, the credit shrinks and employers there pay more. For 2025, California (1.2%) and the U.S. Virgin Islands (4.5%) have a credit reduction. The Department of Labor sets the 2026 reductions after November 10, 2026, and employers pay any extra tax with Form 940, due February 1, 2027.
Sources
- IRS Notice 2025-67: 2026 Cost-of-Living Adjustments for Retirement Plans and IRAs
- IRS Rev. Proc. 2025-32: 2026 Inflation Adjustments
- IRS: Tax Inflation Adjustments for Tax Year 2026
- IRS Rev. Proc. 2025-19: 2026 HSA Limits
- IRS Rev. Proc. 2026-24: 2027 HSA Limits
- Social Security Administration: 2027 Cost-of-Living Adjustment Fact Sheet
- Social Security Administration: Contribution and Benefit Base
- IRS: Questions and Answers for the Additional Medicare Tax
- U.S. Department of Labor: FUTA Credit Reductions
- PayrollOrg: California, Virgin Islands Face FUTA Credit Reduction for 2025
- APS Payroll: SUTA Wage Bases by State
