| Alternative minimum tax (AMT) | 2026 | 2025 |
|---|---|---|
| Maximum AMT exemption amount | $140,200 (MFJ), $90,100 (Single/HOH), $70,100 (MFS) | $137,000 (MFJ), $88,100 (Single/HOH), $68,500 (MFS) |
| Exemption phaseout threshold | $1,000,000 (MFJ), $500,000 (Single/HOH/MFS) | $1,252,700 (MFJ), $626,350 (Single/HOH/MFS) |
| 26% rate applies to AMT income (AMTI) at or below this amount (28% rate applies to AMTI above this amount) | $244,500 (MFJ/Single/HOH), $122,250 (MFS) | $239,100 (MFJ/Single/HOH), $119,550 (MFS) |
| Standard deduction | 2026 | 2025 |
|---|---|---|
| Standard deduction amount | $32,200 (MFJ), $24,150 (HOH), $16,100 (Single), $16,100 (MFS) | $31,500 (MFJ), $23,625 (HOH), $15,750 (Single), $15,750 (MFS) |
| Standard deduction for dependent | Can’t exceed the greater of $1,350 or $450 + earned income | Can’t exceed the greater of $1,350 or $450 + earned income |
| Additional deduction for aged/blind | $2,050 (Single/HOH), $1,650 (MFJ/MFS) | $2,000 (Single/HOH), $1,600 (MFJ/MFS) |
| Deductions introduced by the One Big Beautiful Bill Act of 2025 | 2026 | 2025 | Income Phaseout Threshold |
|---|---|---|---|
| NEW Deduction for seniors (qualifying individuals age 65 or older) | $6,000 | $6,000 | $75,000 ($150,000 (MFJ)) |
| NEW Deduction for tip income | Up to $25,000 | Up to $25,000 | $150,000 ($300,000 (MFJ)) |
| NEW Deduction for overtime compensation | Up to $12,500 ($25,000 (MFJ)) | Up to $12,500 ($25,000 (MFJ)) | $150,000 ($300,000 (MFJ) ) |
| Top tax brackets | 2026 | 2025 |
|---|---|---|
| Single | 37% of taxable income exceeding $640,600 + $192,979.25 | 37% of taxable income exceeding $626,350 + $188,769.75 |
| MFJ | 37% of taxable income exceeding $768,700 + $206,583.50 | 37% of taxable income exceeding $751,600 + $202,154.50 |
| MFS | 37% of taxable income exceeding $384,350 + $103,291.75 | 37% of taxable income exceeding $375,800 + $101,077.25 |
| HOH | 37% of taxable income exceeding $640,600 + $191,171.50 | 37% of taxable income exceeding $626,350 + $187,031.50 |
| Top capital gain tax rate (20%) thresholds | 2026 | 2025 |
|---|---|---|
| Single | $545,500 | $533,400 |
| MFJ | $613,700 | $600,050 |
| MFS | $306,850 | $300,000 |
| HOH | $579,600 | $566,700 |
| Unearned income Medicare contribution tax (Net investment income tax) | 2026 | 2025 |
|---|---|---|
| Amount of tax | 3.80% | 3.80% |
| Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding: | ||
| Individuals | $200,000 | $200,000 |
| Married filing jointly | $250,000 | $250,000 |
| Married filing separately | $125,000 | $125,000 |
| Standard mileage rates | 2026 | 2025 |
|---|---|---|
| Use of auto for business purposes (cents per mile) | $0.725 | $0.70 |
| Use of auto for medical purposes (cents per mile) | $0.205 | $0.21 |
| Use of auto for moving purposes (cents per mile) | $0.205 | $0.21 |
| Use of auto for charitable purposes (cents per mile) | $0.14 | $0.14 |
Qualified charitable distributions (QCDs)
Qualified charitable distributions (QCDs) are distributions made directly from an IRA to a qualified charity. Such distributions may be excluded from income and count toward satisfying any required minimum distributions (RMDs) you would otherwise have to receive from your IRA. Individuals age 70½ and older can make QCDs up to $111,000 (in 2026, $108,000 in 2025).
This content has been reviewed by FINRA.
Prepared by Broadridge Advisor Solutions. © 2026 Broadridge Financial Services, Inc.
The articles and opinions expressed in this document were gathered from a variety of sources, but are reviewed by Strickland Financial Group, LLC prior to its dissemination. Any articles written by Graham M. Strickland or Strickland Financial Group will include a ‘by line’ indicating the author. Strickland Financial Group provides a full range of financial services, including but not limited to: life, health, disability and long term care insurance, group and individual retirement plans and individual investments. Receipt of literature in no way implies suitability of product(s) in your financial plan. Strickland Financial Group maintains networking relationships with estate planning attorneys and tax professionals but does not itself offer legal or tax advice. Securities offered through Osaic Wealth Inc., Member FINRA/SIPC. Advisory services offered through S&S Wealth Management, LP (S&S). A Registered Investment Advisor. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth. Strickland Financial Group is not affiliated with S&S Wealth Management, LP.
This communication is strictly intended for individuals residing in the state(s) of TX, NE, OK and FL. No offers may be made or accepted from any resident outside the specific states referenced.
