Wealth planning guides · reference
Planning Numbers for 2026 and 2027
The contribution limits, tax thresholds and benefit figures we use most with families, foundations and business owners, side by side for this year and next.
The short version
For 2026, the 401(k) limit is $24,500, the IRA limit is $7,500, the federal estate tax exemption is $15 million per person and the annual gift exclusion is $19,000. For 2027, Social Security and HSA figures are final; the IRS has not yet released its 2027 retirement plan and estate tax figures, and this page will be updated when it does.
Retirement accounts
Source: IRS, IR-2025-111 and Notice 2025-67| Item | 2026 | 2027 |
|---|---|---|
| 401(k), 403(b), most 457 plans: employee deferral | $24,500 | PendingNov |
| Catch-up contribution, age 50 and over | $8,000 | PendingNov |
| Higher catch-up, ages 60 to 63 | $11,250 | PendingNov |
| IRA (traditional and Roth combined) | $7,500 | PendingNov |
| IRA catch-up, age 50 and over | $1,100 | PendingNov |
| Required minimum distributions beginAge 75 for anyone born in 1960 or later | Age 73 | Age 73In law |
The IRS usually announces next year’s retirement plan limits in early to mid November. We update this table when it does.
Health savings accounts
Source: IRS, Rev. Proc. 2025-19 and Rev. Proc. 2026-24| Item | 2026 | 2027 |
|---|---|---|
| Contribution limit, self-only coverage | $4,400 | $4,500Final |
| Contribution limit, family coverage | $8,750 | $9,000Final |
| Catch-up contribution, age 55 and over | $1,000 | $1,000Final |
| Minimum high-deductible plan deductibleSelf-only / family | $1,700 / $3,400 | $1,750 / $3,500Final |
| Maximum out-of-pocketSelf-only / family | $8,500 / $17,000 | $8,700 / $17,400Final |
Federal estate and gift tax
Source: IRS, Rev. Proc. 2025-32| Item | 2026 | 2027 |
|---|---|---|
| Estate and lifetime gift tax exemption, per personIndexed for inflation starting in 2027 | $15,000,000 | PendingLate 2026 |
| Married couple, combined exemption | $30,000,000 | PendingLate 2026 |
| Annual gift tax exclusion, per recipient | $19,000 | PendingLate 2026 |
| Annual gifts to a spouse who is not a U.S. citizen | $194,000 | PendingLate 2026 |
Federal income tax
Source: IRS, IR-2025-103 and Rev. Proc. 2025-32| Item | 2026 | 2027 |
|---|---|---|
| Standard deduction, single | $16,100 | PendingLate 2026 |
| Standard deduction, married filing jointly | $32,200 | PendingLate 2026 |
| Standard deduction, head of household | $24,150 | PendingLate 2026 |
| Top 37% bracket beginsSingle / married filing jointly | $640,600 / $768,700 | PendingLate 2026 |
Illinois, Arizona, California and Texas
Source: Illinois Department of Revenue; Illinois Attorney General; Arizona Department of Revenue; California Franchise Tax Board; California EDD; Texas Comptroller| Item | 2026 | 2027 |
|---|---|---|
| Illinois individual income taxFlat rate on net income | 4.95% | 4.95%In law |
| Illinois estate tax exclusionNot indexed for inflation, and an unused exclusion does not pass to a surviving spouse | $4,000,000 | $4,000,000In law |
| Arizona individual income taxFlat rate | 2.5% | 2.5%In law |
| Arizona estate or inheritance tax | None | None |
| California top income tax rate12.3% top bracket plus a 1% Behavioral Health Services Tax on taxable income over $1 million | 13.3% | 13.3%In law |
| California tax on capital gainsTaxed as ordinary income; no lower rate for long-term gains | Up to 13.3% | Up to 13.3%In law |
| California State Disability Insurance (SDI) withholdingEmployee rate on all wages, with no wage cap | 1.3% | 1.4%Final |
| California estate or inheritance tax | None | None |
| Texas personal income taxProhibited by the Texas Constitution | None | NoneIn law |
| Texas estate or inheritance tax | None | None |
The gap between the $15 million federal exemption and Illinois’s $4 million exclusion means many Illinois families owe state estate tax with no federal estate tax due. California taxes capital gains at the same rates as wages, which matters when selling a business or a concentrated stock position, and California voters decide Proposition 40, a one-time 5% tax on net worth above $1 billion for residents as of January 1, 2026, on November 3, 2026. Texas and Arizona have no estate tax. Ask us about planning for families in these states.
What do these numbers mean for your family?
The first meeting is free and carries no obligation. Vistamark has no minimum.
Questions
Common questions about 2026 and 2027 limits
When are the 2027 limits announced?
The Social Security Administration announced its 2027 figures on October 14, 2026, and the IRS released 2027 HSA limits on May 29, 2026. The IRS usually releases next year’s retirement plan limits and income and estate tax adjustments between late October and mid November, and Medicare announces Part B premiums in the fall.
How much can I put in a 401(k) in 2026?
$24,500 in employee deferrals, plus an $8,000 catch-up if you are 50 or older, for $32,500 in total. If you are 60 to 63, the catch-up is $11,250 instead.
How much can I give away without filing a gift tax return?
In 2026 you can give up to $19,000 to any number of people without using any of your lifetime exemption. A married couple can give $38,000 to each recipient by splitting gifts, which requires filing a gift tax return.
Does Illinois have its own estate tax?
Yes. Illinois taxes estates above $4 million, a figure that is not adjusted for inflation, and a surviving spouse cannot use the unused exclusion of the first spouse to die. Estates well under the federal exemption can owe Illinois estate tax.
Do California or Texas have an estate or inheritance tax?
No. Neither California nor Texas has a state estate tax or inheritance tax, so only the federal estate tax applies. California does tax capital gains as ordinary income, at rates up to 13.3%, while Texas has no personal income tax.
This page summarizes figures published by the IRS, the Social Security Administration, Medicare and the states of Illinois, Arizona, California and Texas, for general educational purposes. It is not tax, legal or investment advice; rules have exceptions and phase-outs not shown here. Consult your tax advisor about your situation. See our disclosures.
Social Security and Medicare
Source: Social Security Administration; Medicare.gov