The following is a high-level summary of some key US federal individual tax rates and limits for 2025 and 2026, reflecting the provisions currently in effect as implemented under One, Big, Beautiful Bill Act (OBBBA). This compilation is intended to serve as a reference guide for companies with globally mobile workforces as they prepare for individual US tax filings relating to 2025, as well as planning for 2026.
| Social Security and Medicare taxes (FICA and SE tax) | 2025 | 2026 |
| Social security (SS) wage base | $176,100 | $184,500 |
| SS maximum – 6.2% | $10,918.2 | $11,439 |
| Medicare – 1.45%* | No ceiling | No ceiling |
| Additional Medicare Tax | 2025 | 2026 |
| A 0.9% tax is imposed on individual wages and other compensation in excess of the following threshold amounts: | Single $200,000 MFJ $250,000 MFS $125,000 HOH $200,000 | Single $200,000 MFJ $250,000 MFS $125,000 HOH $200,000 |
*‘MFJ’ means married filing jointly, ‘MFS’ means married filing separately, and ‘HOH’ means head of household.
| Tax on net investment income | 2025 | 2026 |
| A 3.8% tax is imposed on the lesser of net investment income or the excess of modified adjusted gross income over the following threshold amounts: | Single $200,000 MFJ $250,000 MFS $125,000 HOH $200,000 | Single $200,000 MFJ $250,000 MFS $125,000 HOH $200,000 |
| Supplemental withholding flat rates | 2025 | 2026 |
| Supplemental wages up to $1,000,000 (optional)* | 22% | 22% |
| Supplemental wages greater than $1,000,000 | 37% | 37% |
*In lieu of regular tax withholding rates and only if certain requirements are met.
| Personal exemptions (PE) | 2025 | 2026 |
| Personal exemption | 0 | 0 |
*The temporary elimination of personal exemptions under TCJA (2018-2025) was made permanent by OBBBA.
| Standard deduction | 2025 | 2026 |
| Standard deduction | Single $15,750 MFJ $31,500 MFS $15,750 HOH $23,625 | Single $16,100 MFJ $32,200 MFS $16,100 HOH $24,150 |
*The Tax Cuts and Jobs Act (TCJA), enacted in 2017, temporarily eliminated the PE and put in place larger standard deductions and child tax credits for tax years 2018-2025. For tax year 2025, the OBBB raised the standard deduction amounts as mentioned above.
For tax years 2025 through 2028, individuals age 65 and older may claim an additional deduction of $6,000, subject to phasedown with MAGI over $75,000 ($150,000 for joint filers). The deduction is available for both itemizing and non-itemizing taxpayers.
| Itemized deductions | 2025 | 2026 |
| Deduction for state and local taxes (SALT) not accrued in a trade or business or on property held for the production of income (this includes income, sales, real estate, and property taxes – foreign real property taxes are not deductible) | May not exceed $40,000, MFS $20,000* | May not exceed $40,400, MFS $20,200* |
| AGI threshold that unreimbursed medical and dental expense deductions must reach before a deduction is permitted for all taxpayers | 7.5% | 7.5% |
| Deduction for mortgage interest only for qualified indebtedness up to certain amounts
(Home mortgage interest is only deductible if it is paid on acquisition indebtedness – i.e. the proceeds are used for acquiring, constructing, or substantially improving any qualified residence and are secured by such residence. A qualified residence is defined as the principal residence and one other property used as a residence. Beginning in 2026, Private Mortgage Insurance will be treated as deductible mortgage interest.) | $750,000 ($1M for older grandfathered debt) | $750,000 ($1M for older grandfathered debt) |
*The OBBBA increased the SALT cap for tax years 2025-2030 subject to a phasedown once the modified adjusted gross income (MAGI) exceeds $500,000 for 2025 and $505,000 for 2026.
Note: The limitation on itemized deductions was previously eliminated for tax years 2018-2025 under TCJA. The elimination of the limitation was made permanent by OBBBA, although it imposes a limitation on the tax benefit from itemized deductions for the taxpayers in the highest tax bracket (37%).
| Charitable contribution deductions | 2025 | 2026 |
| Limit on charitable contributions to a certain percentage of the taxpayer’s AGI for those who itemize | 60% | 60% |
*The OBBBA made the above limit permanent, however itemizing taxpayers can only deduct the portion of their charitable contributions that exceeds 0.5% of their AGI starting in 2026. Additionally, a 35% tax benefit cap was introduced for the taxpayers in the highest tax bracket (37%) beginning the 2026 tax year.
| Section 911 | 2025 | 2026 |
| Annual exclusion Base housing amountStandard qualified housing expense limit* | $130,000 $20,800 $39,000 | $132,900 $21,264 $39,870 |
*Adjustments to the limitation are provided for certain countries with high housing costs. See Rev. Proc. 2024-40 for the 2025 foreign earned income exclusion amount. See Rev. Proc. 2025-32 for the 2026 amount.
| Expatriation | 2025 | 2026 |
| Five-year average annual net income tax in excess of the following amount:
Amount of net gain from mark-to-market tax regime includible in gross income of covered expatriate is reduced (but not below zero) by: | $206,000
$890,000 | $211,000
$910,000 |
| Alternative minimum tax | 2025 | 2026 |
| Alternative minimum tax (AMT) exemption amounts (subject to phase-out described in the table below): | Single $88,100 MFJ $137,000 MFS $68,500 HOH $88,100 | Single $90,100 MFJ $140,200 MFS $70,100 HOH $90,100 |
| Alternative minimum tax phase-out | 2025 | 2026 |
| The phase-out of the AMT exemption amount begins when the alternative minimum taxable income exceeds the following amounts: | Single $626,350 MFJ $1,252,700 MFS $626,350 HOH $626,350 | Single $500,000 MFJ $1,000,000 MFS $500,000 HOH $500,000 |
| Capital gains tax rate | 2025 | 2026 |
| Long term
Lower-income taxpayers Short term | 15% / 20%
0% Ordinary rates | 15% / 20%
0% Ordinary rates |
For 2025, the 20% long-term capital gains tax rate applies when the lesser of adjusted net capital gain or taxable income is at least $600,050 (MFJ), $533,400 (single), $300,000 (MFS), and $566,700 (HOH).
For 2026, these amounts are $613,700 (MFJ), $545,500 (single), $306,850 (MFS), and $579,600 (HOH).
| Qualified dividends tax rate | 2025 | 2026 |
| Qualified dividend rate
Lower-income taxpayers Nonqualified dividends | 15%/20%
0% Ordinary rates | 15%/20%
0% Ordinary rates |
Qualified dividend income generally is taxed at the same rates and thresholds that apply to net long-term capital gains (see above).
| Child tax credit | 2025 | 2026 |
| Child tax credit (per child)* | $2,200; $1,700 refundable
$500 nonrefundable credit for dependents other than qualifying children and for qualifying children without social security numbers | $2,200; $1,700 refundable
$500 nonrefundable credit for dependents other than qualifying children and for qualifying children without social security numbers |
*The qualifying child (who has not attained the age of 17 at the end of the tax year in question) must have a social security number by the due date of the taxpayer’s return in order to claim the credit, except for the $500 nonrefundable credit, for which the dependent must have an individual taxpayer identification number (ITIN). The credit is subject to phase-outs for individuals with income over certain threshold amounts. Phase-out limitations apply when taxpayers have modified adjusted gross income in excess of $400,000 for married filing jointly, and $200,000 for all others.
Note: The child tax credit of $2,200 will be adjusted annually for inflation starting in 2026.
| Gift tax limits | 2025 | 2026 |
| Annual exclusion from total amount of taxable gifts*
Annual exclusion for gifts to non-US citizen spouses* | $19,000
$190,000 | $19,000
$194,000 |
*This amount is per donor and per donee and refers to gifts that are not future interests in property.
| Defined contribution plan limit (such as 401(k) plans) | 2025 | 2026 |
| Maximum employee elective deferral | $23,500 | $24,500 |
| Catch-up contribution limits (age 50 or older)* | $7,500 | $8,000 |
| Higher catch-up contribution limits (age 60 to 63) * | $11,250 | $11,250 |
*Catch-up contributions for higher income taxpayers must now be made into a Roth 401(k) account.
2025: Married filing jointly and surviving spouses
| Over | Not over | Tax | Plus % on excess |
| 0 | 23,850 | 0 | 10% |
| 23,850 | 96,950 | 2,385 | 12% |
| 96,950 | 206,700 | 11,157 | 22% |
| 206,700 | 394,600 | 35,302 | 24% |
| 394,600 | 501,050 | 80,398 | 32% |
| 501,050 | 751,600 | 114,462 | 35% |
| 751,600 | 202,154.5 | 37% |
2026: Married filing jointly and surviving spouses
| Over | Not over | Tax | Plus % on excess |
| 0 | 24,800 | 0 | 10% |
| 24,800 | 100,800 | 2,480 | 12% |
| 100,800 | 211,400 | 11,600 | 22% |
| 211,400 | 403,550 | 35,932 | 24% |
| 403,550 | 512,450 | 82,048 | 32% |
| 512,450 | 768,700 | 116,896 | 35% |
| 768,700 | 206,583.5 | 37% |
2025: Single
| Over | Not over | Tax | Plus % on excess |
| 0 | 11,925 | 0 | 10% |
| 11,925 | 48,475 | 1,192.5 | 12% |
| 48,475 | 103,350 | 5,578.5 | 22% |
| 103,350 | 197,300 | 17,651 | 24% |
| 197,300 | 250,525 | 40,199 | 32% |
| 250,525 | 626,350 | 57,231 | 35% |
| 626,350 | 188,769.75 | 37% |
2026: Single
| Over | Not over | Tax | Plus % on excess |
| 0 | 12,400 | 0 | 10% |
| 12,400 | 50,400 | 1,240 | 12% |
| 50,400 | 105,700 | 5,800 | 22% |
| 105,700 | 201,775 | 17,966 | 24% |
| 201,775 | 256,225 | 41,024 | 32% |
| 256,225 | 640,600 | 58,448 | 35% |
| 640,600 | 192,979.25 | 37% |
2025: Married filing separately
| Over | Not over | Tax | Plus % on excess |
| 0 | 11,925 | 0 | 10% |
| 11,925 | 48,475 | 1,192.5 | 12% |
| 48,475 | 103,350 | 5,578.5 | 22% |
| 103,350 | 197,300 | 17,651 | 24% |
| 197,300 | 250,525 | 40,199 | 32% |
| 250,525 | 375,800 | 57,231 | 35% |
| 375,800 | 101,077.25 | 37% |
2026: Married filing separately
| Over | Not over | Tax | Plus % on excess |
| 0 | 12,400 | 0 | 10% |
| 12,400 | 50,400 | 1,240 | 12% |
| 50,400 | 105,700 | 5,800 | 22% |
| 105,700 | 201,775 | 17,966 | 24% |
| 201,775 | 256,225 | 41,024 | 32% |
| 256,225 | 384,350 | 58,448 | 35% |
| 384,350 | 103,291.75 | 37% |
2025: Head of household
| Over | Not over | Tax | Plus % on excess |
| 0 | 17,000 | 0 | 10% |
| 17,000 | 64,850 | 1,700 | 12% |
| 64,850 | 103,350 | 7,442 | 22% |
| 103,350 | 197,300 | 15,912 | 24% |
| 197,300 | 250,500 | 38,460 | 32% |
| 250,500 | 626,350 | 55,484 | 35% |
| 626,350 | 187,031.5 | 37% |
2026: Head of household
| Over | Not over | Tax | Plus % on excess |
| 0 | 17,700 | 0 | 10% |
| 17,700 | 67,450 | 1,770 | 12% |
| 67,450 | 105,700 | 7,740 | 22% |
| 105,700 | 201,775 | 16,155 | 24% |
| 201,775 | 256,200 | 39,213 | 32% |
| 256,200 | 640,600 | 56,629 | 35% |
| 640,600 | 191,169 | 37% |
Note: 2025 rate tables are provided in Rev. Proc. 2024-40;
2026 rate tables are provided in Rev. Proc. 2025-32.
Companies with globally and domestically mobile populations face unique risks and challenges within our regulatory environment. We are available to assist with any questions about your US citizen employees working abroad, non-US employees working in the United States, as well as your domestically mobile population.
For a deeper discussion on the above, please contact your regular Global Mobility Services engagement team or one of the following team members:
David Austin
Partner
Mike Branca
Partner
Julie Baron
Partner
Susie McCauley
Director
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