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]]> 2024 Key Numbers

Individual Income Tax Planning

Adoption credit

Adoption credit20232024
Maximum credit$15,950$16,810
Phaseout threshold amount$239,230$252,150
Completed phaseout amount after$279,230$292,150

Alternative Minimum Tax (AMT)

Maximum AMT exemption amount20232024
Married filing jointly or surviving spouse$126,500$133,300
Single or head of household$81,300$85,700
Married filing separately$63,250$66,650
AMT income exemption phaseout threshold20232024
Married filing jointly or surviving spouse$1,156,300$1,218,700
Single or head of household$578,150$609,350
Married filing separately$578,150$609,350
AMT tax rate (26% rate applies to AMTI at or below amount; 28% applies to AMTI above amount)20232024
All taxpayers except married filing separately$220,700$232,600
Married filing separately$110,350$116,300

Charitable deductions

Use of auto20232024
Deductible standard mileage rate$0.14$0.14
Charitable fundraising “insubstantial benefit” limitation20232024
Low-cost article (re: unrelated business income)$12.50$13.20
Gifts to donor in return for contribution20232024
Token gift maximum cost 1$12.50$13.20
Minimum contribution amount 1$62.50$66.00
2% threshold amount 2$125$132

1 Contribution is fully deductible if minimum contribution amount is met and cost of token gift does not exceed maximum

2 Charitable contribution is fully deductible if the benefit received by the donor doesn’t exceed the lesser of the threshold amount or 2% of the amount of the contribution

Child tax credit

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Amount of credit20232024
Maximum credit per qualifying child$2,000$2,000
Nonrefundable credit for dependents who are not qualifying children$500$500
Phaseout — credit reduced by $50 for each $1,000 or fraction thereof of MAGI over (but not to be reduced below $2,000):20232024
Married filing jointly or surviving spouseN/AN/A
Head of householdN/AN/A
Single or married filing separatelyN/AN/A
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Phaseout — any remaining credit reduced by $50 for each $1,000 or fraction thereof of MAGI over:20232024
Married filing jointly$400,000$400,000
All other filing status$200,000$200,000
Refundability — up to specified percentage of earned income in excess of specified amount20232024
Percentage15%15%
Amount$2,500$2,500
Maximum refundable amount of credit$1,600$1,700
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Classroom expenses of elementary and secondary school teachers

Classroom expense deduction20232024
Maximum above-the-line deduction$300$300

Earned income tax credit (EITC)

Investment income limit20232024
Excessive investment income limit (“disqualified income limit”)$11,000$11,600
Maximum amount of EITC per number of children20232024
0 children$600$632
1 child$3,995$4,213
2 children$6,604$6,960
3 or more children$7,730$7,830
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Maximum amount of earned income on which EITC is based (earned income over this amount but under the threshold phaseout amount will not change the amount of the credit received)20232024
0 children$7,840$8,260
1 child$11,750$12,390
2 or more children$16,510$17,400
Threshold phaseout amount for joint filers per number of children20232024
0 children$16,370$17,250
1 child$28,120$29,640
2 children$28,120$29,640
3 or more children$28,120$29,640
Threshold phaseout amount for other filers per number of children20232024
0 children$9,800$10,330
1 child$21,560$22,720
2 children$21,560$22,720
3 or more children$21,560$22,720
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Completed phaseout amount for joint filers per number of children20232024
0 children24,210$25,511
1 child$53,120$56,004
2 children$59,478$62,688
3 or more children$63,398$66,819
Completed phaseout amount for other filers per number of children20232024
0 children$17,640$18,591
1 child$46,560$49,084
2 children$52,918$55,768
3 or more children$56,838$59,899

Expatriation

Covered expatriate20232024
An individual with “average annual net income tax” of more than this amount for the five taxable years ending before his or her loss of citizenship is a covered expatriate for the purposes of IRC §877A(g)(1)$190,000$201,000
IRC §877A(3) exclusion amount$821,000$866,000

Foreign earned income

Amount excluded from income20232024
Exclusion amount$120,000$126,500

Itemized deductions

Phaseout threshold20232024
Married filing jointlyN/AN/A
Head of householdN/AN/A
UnmarriedN/AN/A
Married filing separatelyN/AN/A
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Kiddie tax

Unearned income limit20232024
Amount exempt from tax$1,250$1,300
Additional amount taxed at child’s rate$1,250$1,300
Unearned income over this amount generally taxed at parents’ tax rates$2,500$2,600
Parent’s election20232024
Election to include child’s income on parent’s return — child’s gross income requirement$1,250 – $12,500$1,300 – $13,000
AMT20232024
AMT exemption for child subject to kiddie taxLesser of $8,800 + child’s earned income or $81,300Lesser of $9,250 + child’s earned income or $85,700

Medicare tax (additional payroll tax and unearned income contribution tax)

Payroll tax20232024
Additional Medicare payroll tax (and self-employment tax) percentage rate0.90%0.90%
Applies to wages/self-employment income exceeding20232024
Individuals$200,000$200,000
Married filing jointly$250,000$250,000
Married filing separately$125,000$125,000
Tax on unearned income20232024
Unearned income Medicare contribution tax rate3.80%3.80%
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding20232024
Individuals$200,000$200,000
Married filing jointly$250,000$250,000
Married filing separately$125,000$125,000

Nanny tax

Compensation threshold20232024
Domestic employee coverage threshold$2,600$2,700

Personal exemption amount

Amount20232024
Personal exemption amountN/AN/A
Married filing jointly20232024
Phaseout threshold amountN/AN/A
Completed phaseout amount afterN/AN/A
Head of household20232024
Phaseout threshold amountN/AN/A
Completed phaseout amount afterN/AN/A
Unmarried20232024
Phaseout threshold amountN/AN/A
Completed phaseout amount afterN/AN/A
Married filing separately20232024
Phaseout threshold amountN/AN/A
Completed phaseout amount afterN/AN/A

“Saver’s Credit”

Elective Deferrals and IRA or ABLE Contributions by Certain Individuals20232024
Maximum credit amount$1,000$1,000
Applicable percentage of 50% applies to AGI20232024
Joint Return$0 – $43,500$0 – $46,000
Head of Household$0 – $32,625$0 – $34,500
Other$0 – $21,750$0 – $23,000
Applicable percentage of 20% applies to AGI20232024
Joint Return$43,501 – $47,500$46,001 – $50,000
Head of Household$32,626 – $35,625$34,501 – $37,500
Other$21,751 – $23,750$23,001 – $25,000
Applicable percentage of 10% applies to AGI20232024
Joint Return$47,501 – $73,000$50,001 – $76,500
Head of Household$35,626 – $54,750$37,501 – $57,375
Other$23,751 – $36,500$25,001 – $38,250
Applicable percentage of 0% applies to AGI20232024
Joint ReturnOver $73,000Over $76,500
Head of HouseholdOver $54,750Over $57,375
OtherOver $36,500Over $38,250

Standard deductions

Amounts20232024
Married filing jointly or surviving spouse$27,700$29,200
Head of household$20,800$21,900
Unmarried$13,850$14,600
Married filing separately$13,850$14,600
Dependent–Standard deduction cannot exceed the greater of:$1,250 or $400 + earned income$1,300 or $450 + earned income
Additional deduction for aged or blind (single or head of household)$1,850$1,950
Additional deduction for aged or blind (all other filing statuses)$1,500$1,550

Standard mileage rates

Applicable rates20232024
Use of auto for business purposes (cents per mile)$0.655$0.67
Use of auto for medical purposes (cents per mile)$0.22$0.21
Use of auto for moving purposes (cents per mile)$0.22$0.21

2024 Federal Income Tax Rate Schedules (Individuals, Trusts, and Estates)

Single taxpayers

If taxable income is:Your tax is:
Not over $11,60010% of taxable income
Over $11,600 to $47,150$1,160 + 12% of the excess over $11,600
Over $47,150 to $100,525$5,426 + 22% of the excess over $47,150
Over $100,525 to $191,950$17,168.50 + 24% of the excess over $100,525
Over $191,950 to $243,725$39,110.50 + 32% of the excess over $191,950
Over $243,725 to $609,350$55,678.50 + 35% of the excess over $243,725
Over $609,350$183,647.25 + 37% of the excess over $609,350

Married filing jointly and surviving spouses

If taxable income is:Your tax is:
Not over $23,20010% of taxable income
Over $23,200 to $94,300$2,320 + 12% of the excess over $23,200
Over $94,300 to $201,050$10,852 + 22% of the excess over $94,300
Over $201,050 to $383,900$34,337 + 24% of the excess over $201,050
Over $383,900 to $487,450$78,221 + 32% of the excess over $383,900
Over $487,450 to $731,200$111,357 + 35% of the excess over $487,450
Over $731,200$196,669.50 + 37% of the excess over $731,200

Married individuals filing separately

If taxable income is:Your tax is:
Not over $11,60010% of taxable income
Over $11,600 to $47,150$1,160 + 12% of the excess over $11,600
Over $47,150 to $100,525$5,426 + 22% of the excess over $47,150
Over $100,525 to $191,950$17,168.50 + 24% of the excess over $100,525
Over $191,950 to $243,725$39,110.50 + 32% of the excess over $191,950
Over $243,725 to $365,600$55,678.50 + 35% of the excess over $243,725
Over $365,600$93,334.75 + 37% of the excess over $365,600

Heads of household

If taxable income is:Your tax is:
Not over $16,55010% of taxable income
Over $16,550 to $63,100$1,655 + 12% of the excess over $16,550
Over $63,100 to $100,500$7,241 + 22% of the excess over $63,100
Over $100,500 to $191,950$15,469 + 24% of the excess over $100,500
Over $191,950 to $243,700$37,417 + 32% of the excess over $191,950
Over $243,700 to $609,350$53,977 + 35% of the excess over $243,700
Over $609,350$181,954.50 + 37% of the excess over $609,350

Trusts and estates

If taxable income is:Your tax is:
Not over $3,10010% of taxable income
Over $3,100 to $11,150$310 + 24% of the excess over $3,100
Over $11,150 to $15,200$2,242 + 35% of the excess over $11,150
Over $15,200$3,659.50 + 37% of the excess over $15,200

2023 Federal Income Tax Rate Schedules (Individuals, Trusts, and Estates)

Single taxpayers

If taxable income is:Your tax is:
Not over $11,00010% of taxable income
Over $11,000 to $44,725$1,100 + 12% of the excess over $11,000
Over $44,725 to $95,375$5,147 + 22% of the excess over $44,725
Over $95,375 to $182,100$16,290 + 24% of the excess over $95,375
Over $182,100 to $231,250$37,104 + 32% of the excess over $182,100
Over $231,250 to $578,125$52,832 + 35% of the excess over $231,250
Over $578,125$174,238.25 + 37% of the excess over $578,125
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Married filing jointly and surviving spouses

If taxable income is:Your tax is:
Not over $22,00010% of taxable income
Over $22,000 to $89,450$2,200 + 12% of the excess over $22,000
Over $89,450 to $190,750$10,294 + 22% of the excess over $89,450
Over $190,750 to $364,200$32,580 + 24% of the excess over $190,750
Over $364,200 to $462,500$74,208 + 32% of the excess over $364,200
Over $462,500 to $693,750$105,664 + 35% of the excess over $462,500
Over $693,750$186,601.50 + 37% of the excess over $693,750

Married individuals filing separately

If taxable income is:Your tax is:
Not over $11,00010% of taxable income
Over $11,000 to $44,725$1,100 + 12% of the excess over $11,000
Over $44,725 to $95,375$5,147 + 22% of the excess over $44,725
Over $95,375 to $182,100$16,290 + 24% of the excess over $95,375
Over $182,100 to $231,250$37,104 + 32% of the excess over $182,100
Over $231,250 to $346,875$52,832 + 35% of the excess over $231,250
Over $346,875$93,300.75 + 37% of the excess over $346,875

Heads of household

If taxable income is:Your tax is:
Not over $15,70010% of taxable income
Over $15,700 to $59,850$1,570 + 12% of the excess over $15,700
Over $59,850 to $95,350$6,868 + 22% of the excess over $59,850
Over $95,350 to $182,100$14,678 + 24% of the excess over $95,350
Over $182,100 to $231,250$35,498 + 32% of the excess over $182,100
Over $231,250 to $578,100$51,226 + 35% of the excess over $231,250
Over $578,100$172,623.50 + 37% of the excess over $578,100

Trusts and estates

If taxable income is:Your tax is:
Not over $2,90010% of taxable income
Over $2,900 to $10,550$290 + 24% of the excess over $2,900
Over $10,550 to $14,450$2,126 + 35% of the excess over $10,550
Over $14,450$3,491 + 37% of the excess over $14,450

Business Planning

Adoption Assistance Programs

Adoption assistance20232024
Maximum amount that can be excluded from employee’s gross income$15,590$16,810
Phaseout threshold amount$239,230$252,150
Completed phaseout amount after$279,230$292,150

Earnings subject to FICA taxes (taxable wage base)

FICA tax20232024
Maximum annual earnings subject to Social Security taxes$160,200$168,600
Social Security and Medicare combined tax rate15.30% 115.30% 1
OASDI portion (Social Security)12.40%12.40%
Hospital Insurance portion (Medicare)2.90% 12.90% 1
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1 An additional Medicare (HI) employee contribution rate of 0.9% (for a total employee contribution of 2.35%, and a total combined Medicare contribution rate of 3.8%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). For married individuals filing joint returns, the additional 0.9% tax applies to the couples combined wages (to the extent the combined wages exceed $250,000).

Health insurance deduction for self-employed

Health insurance premiums20232024
Deduction for health insurance premiums paid by self-employed persons100%100%

Qualified transportation fringe benefits

Qualified transportation fringe benefits20232024
Commuter vehicles and transit pass monthly exclusion amount$300$315
Qualified parking monthly exclusion amount$300$315
Qualified bicycle commuting reimbursement fringe benefit (monthly amount)N/AN/A

Section 179 expensing

Section 179 expensing20232024
Maximum amount that may be deducted under IRC Section 179$1,160,000$1,220,000
Deduction reduced by the amount by which the cost of §179 property placed in service during the year exceeds this amount$2,890,000$3,050,000

Small business tax credit for providing health-care coverage

Amount of credit20232024
Maximum credit percentage50%50%
Partial credit20232024
Number of full-time equivalent employees (FTEs) fewer than:2525
Maximum average annual wages less than:$61,400$64,800
Full credit20232024
Number of full-time equivalent employees (FTEs) no more than:1010
Maximum average annual wages less than or equal to:$30,700$32,400

Special additional first-year depreciation allowance

Bonus depreciation20232024
“Bonus” depreciation for qualified property acquired and placed in service during specified time periods80%60%

Standard mileage rate (per mile)

Business use of auto20232024
Use of auto for business purposes$0.655$0.67

Education Planning

American Opportunity and Lifetime Learning Credits

Education credits20232024
Maximum American Opportunity credit$2,500$2,500
Maximum Lifetime Learning credit$2,000$2,000
MAGI phaseout range for American Opportunity credit20232024
Single–phaseout threshold amount$80,000$80,000
Single–completed phaseout amount after$90,000$90,000
Married filing jointly–phaseout threshold amount$160,000$160,000
Married filing jointly–completed phaseout amount after$180,000$180,000
MAGI phaseout range for Lifetime Learning credit20232024
Single–phaseout threshold amount$80,000$80,000
Single–completed phaseout amount after$90,000$90,000
Married filing jointly–phaseout threshold amount$160,000$160,000
Married filing jointly–completed phaseout amount after$180,000$180,000

Coverdell education savings accounts

Coverdell ESAs20232024
Annual contribution limit$2,000$2,000
MAGI phaseout range for Coverdell education savings accounts20232024
Single–phaseout threshold amount$95,000$95,000
Single–completed phaseout amount after$110,000$110,000
Married filing jointly–phaseout threshold amount$190,000$190,000
Married filing jointly–completed phaseout threshold amount$220,000$220,000

Deduction for qualified higher education expenses

Higher education expenses20232024
Maximum deductionN/AN/A
MAGI maximum for full $4,000 deduction20232024
SingleN/AN/A
Married filing jointlyN/AN/A
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MAGI range for $2,000 deduction20232024
Single–MAGI greater than this amount:N/AN/A
Single–MAGI does not exceed this amount:N/AN/A
Married filing jointly–MAGI greater than this amount:N/AN/A
Married filing jointly–MAGI does not exceed this amount:N/AN/A

Deduction for student loan interest

Education loan interest deduction20232024
Maximum deduction for interest paid on qualified education loans$2,500$2,500
MAGI phaseout range20232024
Single–phaseout threshold amount$75,000$80,000
Single–completed phaseout amount after$90,000$95,000
Married filing jointly–phaseout threshold amount$155,000$165,000
Married filing jointly–completed phaseout amount after$185,000$195,000

Gift tax exclusion

Gift tax20232024
Annual gift tax exclusion–single individual$17,000$18,000
Annual gift tax exclusion–joint gift$34,000$36,000
Lump-sum gift to 529 plan–single individual$85,000$90,000
Lump-sum gift to 529 plan–joint gift$170,000$180,000

Kiddie tax

Kiddie tax20232024
Children’s unearned income over this amount generally taxed at parents’ tax rates$2,500$2,600

U.S. savings bonds interest exclusion for college expenses

Joint returns20232024
Phaseout threshold for joint returns$137,800$145,200
Completed phaseout amount after$167,800$175,200
Other returns20232024
Phaseout threshold for other returns$91,850$96,800
Completed phaseout amount after$106,850$111,800

Protection Planning

Eligible long-term care premium deduction limits:

LTC premium deduction limits20232024
Age 40 or under$480$470
Age 41-50$890$880
Age 51-60$1,790$1,760
Age 61-70$4,770$4,710
Over age 70$5,960$5,880
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Per diem limit:

LTC periodic payments20232024
Periodic payments for qualified long-term care insurance/certain life insurance$420$410

Archer Medical Savings Accounts

High deductible health plan–self-only coverage20232024
Annual deductible–minimum$2,650$2,800
Annual deductible–maximum$3,950$4,150
Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed$5,300$5,550
High deductible health plan–family coverage20232024
Annual deductible–minimum$5,300$5,550
Annual deductible–maximum$7,900$8,350
Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed$9,650$10,200

Flexible spending account (FSA) for health care

Health care FSAs20232024
Maximum salary reduction contribution$3,050$3,200

Health Savings Accounts (HSAs)

Annual contribution limit20232024
Self-only coverage$3,850$4,150
Family coverage$7,750$8,300
High deductible health plan–self-only coverage20232024
Annual deductible–minimum$1,500$1,600
Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed$7,500$8,050
High deductible health plan–family coverage20232024
Annual deductible–minimum$3,000$3,200
Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed$15,000$16,100
Catch-up contributions20232024
Annual catch-up contribution limit for individuals age 55 or older$1,000$1,000

Estate Planning

Key indexed figures20232024
Annual gift exclusion:$17,000$18,000
Gift and estate tax applicable exclusion amount:$12,920,000 + DSUEA 1$13,610,000 + DSUEA 1
Noncitizen spouse annual gift exclusion:$175,000$185,000
Generation-skipping transfer (GST) tax exemption:$12,920,000 2$13,610,000 2
Special use valuation limit (qualified real property in decedent’s gross estate):$1,310,000$1,390,000
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1 Basic exclusion amount plus deceased spousal unused exclusion amount (exclusion is portable for 2011 and later years)

2 The GST tax exemption is not portable

2023 and 2024 gift and estate tax rate schedule

Taxable EstateTentative Tax EqualsPlusOf Amount Over
0 – $10,000$018%$0
$10,000 – $20,000$1,80020%$10,000
$20,000 – $40,000$3,80022%$20,000
$40,000 – $60,000$8,20024%$40,000
$60,000 – $80,000$13,00026%$60,000
$80,000 – $100,000$18,20028%$80,000
$100,000 – $150,000$23,80030%$100,000
$150,000 – $250,000$38,80032%$150,000
$250,000 – $500,000$70,80034%$250,000
$500,000 – $750,000$155,80037%$500,000
$750,000 – $1,000,000$248,30039%$750,000
$1,000,000 +$345,80040%$1,000,000
Credit shelter amount $12,920,000 in 2023 and $13,610,000 in 2024Unified credit amount $5,113,800 in 2023 and $5,389,800 in 2024

Government Benefits

Social Security

Social Security Cost-of-living adjustment (COLA)20232024
For Social Security and Supplemental Security Income (SSI) beneficiaries8.70%3.20%
Tax rate–employee20232024
FICA tax — Employee7.65%7.65%
Social Security (OASDI) portion of tax6.20%6.20%
Medicare (HI) portion of tax1.45% 11.45% 1
Tax rate–self-employed20232024
Self-Employed15.30%15.30%
Social Security (OASDI) portion of tax12.40%12.40%
Medicare (HI) portion of tax2.90% 12.90% 1

1 An additional 0.9% Medicare/hospital insurance tax (for a total employee contribution of 2.35%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). An additional 0.9% Medicare/hospital insurance tax (for a total Medicare portion of 3.8%) is assessed on self-employment income exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns).

Maximum taxable earnings20232024
Social Security (OASDI only)$160,200$168,600
Medicare (HI only)No limitNo Limit
Quarter of coverage20232024
Earnings required$1,640$1,730
Retirement earnings test–exempt amounts–Under full retirement age–Benefits reduced by $1 for each $2 earned above:20232024
Yearly figure$21,240$22,320
Monthly figure$1,770$1,860
Retirement earnings test–exempt amounts–Year individual reaches full retirement age–Benefits reduced by $1 for each $3 earned above (applies only to earnings for months prior to attaining full retirement age):20232024
Yearly figure$56,520$59,520
Monthly figure$4,710$4,960
Retirement earnings test–exempt amounts–Beginning the month individual attains full retirement age20232024
No limit on earningsNo limit on earnings
Social Security disability thresholds20232024
Substantial gainful activity (SGA) for the sighted (monthly figure)$1,470$1,550
Substantial gainful activity for the blind (monthly figure)$2,460$2,590
Trial work period (TWP) (monthly figure)$1,050$1,110
SSI federal payment standard20232024
Individual (monthly figure)$914$943
Couple (monthly figure)$1,371$1,415
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SSI resource limits20232024
Individual$2,000$2,000
Couple$3,000$3,000
SSI student exclusion limits20232024
Monthly limit$2,220$2,290
Annual limit$8,950$9,230
Maximum Social Security benefit20232024
Worker retiring at full retirement age (monthly figure)$3,627$3,822
Formula for Monthly Primary Insurance Amount (PIA)20232024
(90% of first X of AIME + 32% of the AIME over X and through Y + 15% of AIME over Y)X=$1,115 Y=$6,721X=$1,174 Y=$7,078

Medicare

Medicare monthly premium amounts–Part A (hospital insurance) premium20232024
Individuals with 40 or more quarters of Medicare-covered employment$0$0
Individuals with less than 40 quarters of Medicare-covered employment who are not otherwise eligible for premium-free hospital insuranceUp to $506Up to $505
Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who file an individual income tax return with income that is:
2023202420232024
Less than or equal to $97,000Less than or equal to $103,000$164.90 2$174.70 2
$97,001 – $123,000$103,001 – $129,000$230.80$244.60
$123,001 – $153,000$129,001 – $161,000$329.70$349.40
$153,001 – $183,000$161,001 – $193,000$428.60$454.20
$183,001 – $499,999$193,001 – $499,999$527.50$559.00
$500,000 and above$500,000 and above$560.50$594.00
Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who file a joint income tax return with income that is:
2023202420232024
Less than or equal to $194,000Less than or equal to $206,000$164.90 2$174.70 2
$$194,001 – $246,000$206,001 – $258,000$230.80$244.60
$246,001 – $306,000$258,001 – $322,000$329.70$349.40
$$306,001 – $366,000$322,001 – $386,000$428.60$454.20
$366,001 – $749,999$386,001 – $749,999$527.50$559.00
$750,000 and above$750,000 and above$560.50$594.00
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Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who are married, but file a separate tax return from their spouse and lived with spouse at some time during the taxable year with income that is:
2023202420232024
Less than or equal to $97,000Less than or equal to $103,000$164.90 2$174.70 2
$97,001 – $402,999$103,001 – $396,999$544.30$559.00
$403,000 and above$397,000 and above$527.50$594.00

2 This is the standard Part B premium amount. However, some people who get Social Security benefits will pay more or less than this amount.

Original Medicare plan deductible and coinsurance amounts–Part A (hospital insurance)20232024
Deductible per benefit period$1,600$1,632
Coinsurance per day for 61st to 90th day of each benefit period$400$408
Coinsurance per day for 91st to 150th day for each lifetime reserve day (total of 60 lifetime reserve days–nonrenewable)$800$816
Original Medicare plan deductible and coinsurance amounts20232024
Skilled nursing facility coinsurance per day for 21st to 100th day of each benefit period$200$204
Original Medicare plan deductible and coinsurance amounts–Part B (medical insurance) annual deductible20232024
Individual pays 20 percent of the Medicare-approved amount for services after deductible is met$226$240

Medicaid

Income threshold20232024
Monthly income threshold for income-cap states (“300 percent cap limit”)$2,742$2,829
Monthly maintenance needs allowance for at-home spouse20232024
Minimum 3$2,288.75$2,465.00
Maximum$3,715.50$3.853.50
Community spousal resource allowance20232024
Minimum$29,724$30,828
Maximum$148,620$154,140

3 Amounts listed actually effective as of July of prior year; different amounts apply to Alaska and Hawaii.

Retirement Planning

Employee/individual contribution limits

Elective deferral limits20232024
401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs 1 [Includes Roth 401(k) and Roth 403(b) contributions]Lesser of $22,500 or 100% of participant’s compensationLesser of $23,000 or 100% of participant’s compensation
SIMPLE 401(k) plans and SIMPLE IRA plans 1Lesser of $15,500 or 100% of participant’s compensationLesser of $16,000 or 100% of participant’s compensation

1 Must aggregate employee contributions to all 401(k), 403(b), SAR-SEP, and SIMPLE plans of all employers. 457(b) plan contributions are not aggregated. For SAR-SEPs, the percentage limit is 25% of compensation reduced by elective deferrals (effectively, a 20% maximum contribution).

IRA contribution limits20232024
Traditional IRAsLesser of $6,500 or 100% of earned incomeLesser of $7,000 or 100% of earned income
Roth IRAsLesser of $6,500 or 100% of earned incomeLesser of $7,000 or 100% of earned income
Additional “catch-up” limits (individuals age 50 or older)20232024
401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs 2$7,500$7,500
SIMPLE 401(k) plans and SIMPLE IRA plans$3,500$3,500
IRAs (traditional and Roth)$1,000$1,000

2 Special catch-up limits may also apply to 403(b) and 457(b) plan participants.

Employer contribution/benefit 3 limits

Defined benefit plan limits20232024
Annual contribution limit per participantNo predetermined limit. Contributions based on amount needed to fund promised benefitsNo predetermined limit. Contributions based on amount needed to fund promised benefits.
Annual benefit limit per participantLesser of $265,000 or 100% of average compensation for highest three consecutive yearsLesser of $275,000 or 100% of average compensation for highest three consecutive years
Defined contribution plan limits [qualified plans, 403(b) plans, SEP, and SIMPLE plans]20232024
Annual addition limit per participant (employer contributions; employee pre-tax, after-tax, and Roth contributions; and forfeitures) (does not apply to SIMPLE IRA plans)Lesser of $66,000 or 100% (25% for SEP) of participant’s compensationLesser of $69,000 or 100% (25% for SEP) of participant’s compensation
Maximum tax-deductible employer contribution

25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans 25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans

3 For self-employed individuals, compensation generally means earned income. This means that, for qualified plans, deductible contributions for a self-employed individual are limited to 20% of net earnings from self-employment (net profits minus self-employment tax deduction), and special rules apply in calculating the annual additions limit.

Compensation limits/thresholds

Retirement plan compensation limits20232024
Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans and SEPs)$330,000$345,000
Compensation threshold used to determine a highly compensated employee$150,000 (when 2023 is the look-back year)$155,000 (when 2024 is the look-back year)
Compensation threshold used to determine a key employee in a top-heavy plan$1 for more-than-5% owners, $215,000 for officers, $150,000 for more-than-1% owners$1 for more-than-5% owners, $220,000 for officers, $150,000 for more-than-1% owners
Compensation threshold used to determine a qualifying employee under a SIMPLE plan$5,000$5,000
Compensation threshold used to determine a qualifying employee under a SEP plan$750$750
Traditional deductible IRA income limits – Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers covered by an employer-sponsored plan and filing as:20232024
Single$73,000 – $83,000$77,000 – $87,000
Married filing jointly$116,000 – $136,000$123,000 – $143,000
Married filing separately$0 – $10,000$0 – $10,000
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Traditional deductible IRA income limits – Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers not covered by an employer-sponsored retirement plan but filing a:20232024
Joint return with a spouse who is covered by an employer-sponsored retirement plan$218,000 – $228,000$230,000 – $240,000
Roth IRA compensation limits – Income phase-out range for determining ability to fund Roth IRA for taxpayers filing as:20232024
Single$138,000 – $153,000$146,000 – $161,000
Married filing jointly$218,000 – $228,000$230,000 – $240,000
Married filing separately$0 – $10,000$0 – $10,000

Qualified charitable distribution

20232024
Annual amount not includible in gross income$100,000$105,000
One-time exclusion for transfer to split-interest entity$50,000$53,000

Investment Planning

Maximum tax on long-term capital gains and qualified dividends

0% rate applies (taxable income thresholds)20232024
SingleUp to $44,625Up to $47,025
Married filing jointlyUp to $89,250Up to $94,050
Married filing separatelyUp to $44,625Up to $47,025
Head of householdUp to $59,750Up to $63,000
15% rate applies (taxable income thresholds)20232024
Single$44,625 to $492,300$47,025 to $518,900
Married filing jointly$89,250 to $553,850$94,050 to $583,750
Married filing separately$44,625 to $276,900$47,025 to $291,850
Head of household$59,750 to $523,050$63,000 to $551,350
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20% rate applies (taxable income thresholds)20232024
SingleOver $492,300Over $518,900
Married filing jointlyOver $553,850Over $583,750
Married filing separatelyOver $276,900Over $291,850
Head of householdOver $523,050Over $551,350

Unearned income Medicare contribution tax (“net investment income tax”)

Amount of tax20232024
Tax percentage3.80%3.80%
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding:20232024
Individuals$200,000$200,000
Married filing jointly$250,000$250,000
Married filing separately$125,000$125,000
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