Plan your company’s financial strategy for 2026! To help you with your company’s budget, here’s an overview of some notable upcoming financial changes. Download your cheat sheet here:
Download: 2026 Tax, FSA, and Retirement Updates
2026 Tax, FSA, and Retirement Updates
| 2026 | 2025 | |
Taxes | ||
| Social Security Wage Base | $184,500 | $176,100 |
| FICA – Social Security (OASDI) | 6.2%, up to wage base | 6.2%, up to wage base |
| FICA – Medicare | 1.45% up to $200,000, then 2.35% | 1.45% up to $200,000, then 2.35% |
| SUTA Wage Base – varies by state | see nextep.com | see nextep.com |
| FUTA Wage Base | $7,000 | $7,000 |
| FUTA Rate | 0.60% | 0.60% |
FSA/HSA | ||
| FSA for Health Care Expenses | $3,400 | $3,300 |
| FSA Maximum Rollover | $680 | $660 |
| HSA: Individual | Family | Catch-up | $4,400 | $8,750 | $1,000 | $4,300 | $8,550 | $1,000 |
| LPFSA for Dental and Vision | $3,400 | $3,300 |
| DCA for Dependent Care | $7,500 | $5,000 |
| Parking | Transit FSAs | $340 | $340 | $325 | $325 |
Retirement | ||
| Maximum 401(k) Contribution | $24,500 | $23,500 |
| Catch-up 401(k) Limit, Ages 50+ | $8,000** | $7,500* |
| IRA | Simple IRA Limit | $7,500 | $17,000 | $7,000 | $16,500 |
Pay | ||
| Federal Minimum Wage | $7.25*** | $7.25 |
| Mileage Rate – Business Use | $0.76 per mile (as of July 1) | $0.70 per mile |
| *FUTA is 6% of first $7,000 of wages. Assuming you receive the full 5.4% IRS credit, your rate is 0.6%. See our post with SUTA wage bases by state. | ||
| ** Under SECURE Act 2.0, catch-up contributions must be Roth for those earning over $150,000. | ||
| *** Federal, county, state, or local minimum wage may differ. The higher wage prevails. | ||
As a reminder, Nextep does not give tax or legal advice. Please contact your tax advisor or legal counsel.
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