Jim Lange’s 2025-2026 Tax Planning Card
HOW to COMPUTE YOUR FEDERAL INCOME TAX
Example: For a married couple in 2025 with taxable income of $100,000, refer to the MARRIED FILING JOINTLY
section of the 2025 chart listed below . See $96,951 - $206,700 and calculate as follows:
$100,000 x 22% = $22,000 - $10,172 = $11,828
CALCULATION of TAXABLE INCOME
To determine taxable income, please follow these steps:
1. List your total income. (U.S. Form 1040, Line 9)
2. Subtract adjustments to income, which include various deductions
from Schedule 1 (Line 26)
3. You now have your adjusted gross income, AGI. (Line 11a)
4. Subtract the larger of your standard deduction, or your itemized deductions from Schedule A. (Line 12e)
5. Subtract your qualified business income deduction. (Line 13a)
6. Subtract additional deductions from Schedule 1-A, line 38 (Line13b)
7. Arrive at taxable income. (Line 15)
8. Insert taxable income into the appropriate table below.
9. Make adjustments for qualified dividends and capital gains.
2025 QUICK CALC
OR QUALIFYING WIDOW(ER)
| Taxable Income ($) | x% | Less ($) | = | Tax |
|---|---|---|---|---|
| $ 0 – 23,850 | x 10% – | $ 0 | = | Tax |
| $ 23,851 – 96,950 | x 12% – | $ 477 | = | Tax |
| $ 96,951 – 206,700 | x 22% – | $ 10,172 | = | Tax |
| $ 206,701 – 394,600 | x 24% – | $ 14,306 | = | Tax |
| $ 394,601 – 501,050 | x 32% – | $ 45,874 | = | Tax |
| $ 501,051 – 751,600 | x 35% – | $ 60,906 | = | Tax |
| $ 751,601 and above | x 37% – | $ 75,938 | = | Tax |
| Taxable Income ($) | x% | Less ($) | = | Tax |
|---|---|---|---|---|
| $ 0 – 11,925 | x 10% – | $ 0 | = | Tax |
| $ 11,926 – 48,475 | x 12% – | $ 239 | = | Tax |
| $ 48,476 – 103,350 | x 22% – | $ 5,086 | = | Tax |
| $ 103,351 – 197,300 | x 24% – | $ 7,153 | = | Tax |
| $ 197,301 – 250,525 | x 32% – | $ 22,937 | = | Tax |
| $ 250,526 – 626,350 | x 35% – | $ 30,453 | = | Tax |
| $ 626,351 and above | x 37% – | $ 42,980 | = | Tax |
| Taxable Income ($) | x% | Less ($) | = | Tax |
|---|---|---|---|---|
| $ 0 – 17,000 | x 10% – | $ 0 | = | Tax |
| $ 17,001 – 64,850 | x 12% – | $ 340 | = | Tax |
| $ 64,851 – 103,350 | x 22% – | $ 6,825 | = | Tax |
| $ 103,351 – 197,300 | x 24% – | $ 8,892 | = | Tax |
| $ 197,301 – 250,500 | x 32% – | $ 24,676 | = | Tax |
| $ 250,501 – 626,350 | x 35% – | $ 32,191 | = | Tax |
| $ 626,351 and above | x 37% – | $ 44,718 | = | Tax |
| Taxable Income ($) | x% | Less ($) | = | Tax |
|---|---|---|---|---|
| $ 0 – 11,925 | x 10% – | $ 0 | = | Tax |
| $ 11,926 – 48,475 | x 12% – | $ 239 | = | Tax |
| $ 48,476 – 103,350 | x 22% – | $ 5,086 | = | Tax |
| $ 103,351 – 197,300 | x 24% – | $ 7,153 | = | Tax |
| $ 197,301 – 250,525 | x 32% – | $ 22,937 | = | Tax |
| $ 250,526 – 375,800 | x 35% – | $ 30,453 | = | Tax |
| $ 375,801 and above | x 37% – | $ 37,969 | = | Tax |
2026 QUICK CALC
OR QUALIFYING WIDOW(ER)
| Taxable Income ($) | x% | Less ($) | = | Tax |
|---|---|---|---|---|
| $ 0 – 24,800 | x 10% – | $ 0 | = | Tax |
| $ 24,801 – 100,800 | x 12% – | $ 496 | = | Tax |
| $ 100,801 – 211,400 | x 22% – | $ 10,576 | = | Tax |
| $ 211,401 – 403,550 | x 24% – | $ 14,804 | = | Tax |
| $ 403,551 – 512,450 | x 32% – | $ 47,088 | = | Tax |
| $ 512,451 – 768,700 | x 35% – | $ 62,462 | = | Tax |
| $ 768,701 and above | x 37% – | $ 77,836 | = | Tax |
| Taxable Income ($) | x% | Less ($) | = | Tax |
|---|---|---|---|---|
| $ 0 – 12,400 | x 10% – | $ 0 | = | Tax |
| $ 12,401 – 50,400 | x 12% – | $ 248 | = | Tax |
| $ 50,401 – 105,700 | x 22% – | $ 5,288 | = | Tax |
| $ 105,701 – 201,775 | x 24% – | $ 7,402 | = | Tax |
| $ 201,776 – 256,225 | x 32% – | $ 23,544 | = | Tax |
| $ 256,226 – 640,600 | x 35% – | $ 31,231 | = | Tax |
| $ 640,601 and above | x 37% – | $ 44,043 | = | Tax |
| Taxable Income ($) | x% | Less ($) | = | Tax |
|---|---|---|---|---|
| $ 0 – 17,700 | x 10% – | $ 0 | = | Tax |
| $ 17,701 – 67,450 | x 12% – | $ 354 | = | Tax |
| $ 67,451 – 105,700 | x 22% – | $ 7,099 | = | Tax |
| $ 105,701 – 201,750 | x 24% – | $ 9,213 | = | Tax |
| $ 201,751 – 256,200 | x 32% – | $ 25,353 | = | Tax |
| $ 256,201 – 640,600 | x 35% – | $ 33,039 | = | Tax |
| $ 640,601 and above | x 37% – | $ 45,851 | = | Tax |
| Taxable Income ($) | x% | Less ($) | = | Tax |
|---|---|---|---|---|
| $ 0 – 12,400 | x 10% – | $ 0 | = | Tax |
| $ 12,401 – 50,400 | x 12% – | $ 248 | = | Tax |
| $ 50,401 – 105,700 | x 22% – | $ 5,288 | = | Tax |
| $ 105,701 – 201,775 | x 24% – | $ 7,402 | = | Tax |
| $ 201,776 – 256,225 | x 32% – | $ 23,544 | = | Tax |
| $ 256,226 – 384,350 | x 35% – | $ 31,231 | = | Tax |
| $ 384,351 and above | x 37% – | $ 38,918 | = | Tax |
© James Lange 2026
Note: Net long-term capital gains and qualified dividends will reduce computed
Quick Calc tax liability, while the alternative minimum tax and net
investment income tax and other factors increase it.
Should You Make a Roth IRA Conversion?
Your current and future tax brackets must be factored into any decisions concerning
converting a portion or even all your IRA into a Roth IRA. For an indepth
look at the topic, please read Chapter 15 in Jim’s book, Retire Secure
for Professors and TIAA Participants.
NEW SENIOR DEDUCTIONS
For tax years beginning before January 1,2029,
individuals age 65 or older may qualify for a
senior deduction on top of standard or itemized
deductions. Deduction Amount: $6,000 for single
filers; $12,000 for married couples filing
jointly (if both spouses are age 65 or older).
Income Phase-Out: Begins at $75,000 MAGI
for single filers and $150,000 MAGI for joint
filers. Note: Deduction is reduced by 6% of the
excess income above these thresholds.
PENNSYLVANIA
INCOME TAXES
PA Individual Income Tax
The Pennsylvania individual income tax rate
remains at 3.07% for 2025 and 2026.
Pittsburgh Income Tax
The Pittsburgh individual earned income tax
rate remains at 3% for 2025 and 2026 for city
residents.
PA Corporate Tax
Beginning January 1, 2023, this rate will be
reduced from 9.99% to 8.99%. Each year after
2023 the rate will be reduced 0.5% until 2031
when it reaches 4.99%. For tax years beginning
January 1, 2025 through December 31,
2025, the PACorporate Tax rate is 7.99%. For
tax years beginning January 1, 2026 through
December 31, 2026, the PA Corporate Tax rate
is 7.49%.
ESTATE and
INHERITANCE TAXES
Pennsylvania Inheritance Tax
Transfers to lineal heirs (such as children,
grandchildren, parents and grandparents) are
taxed at 41/2%. Transfers to siblings are taxed
at 12% and all other transfers (except transfers
to charity) are taxed at 15%.
Pennsylvania still allows unlimited tax-free
transfers to spouses.
Federal Estate and Gift Tax
The federal government allows unlimited transfers
to spouses who are American citizens.
In 2026, the maximum amount that can be
transferred from an estate to non-spouses
without incurring any federal estate taxes is
$15,000,000 per individual or $30,000,000
per married couple. Also in 2026, the gift tax
exclusion per donee is $19,000/year.
The lifetime gift exemption increases to
$13,990,000 in 2025 and to $15,000,000 in
2026.
Disclaimer:
Material provided herein is general in nature and does not constitute, nor is it intended as a rendering of professional services. James Lange, CPA/Attorney is not responsible for the results obtained from using the contents, nor any errors or omissions. Do not act upon information contained herein without consulting James Lange, CPA/Attorney or other appropriate advice based on thorough evaluation of the facts relating to your specific circumstances.
2025 and 2026 STANDARD DEDUCTIONS
|
2025
Standard Deduction |
2025
+ Age 65 or Over or Blind (EACH) |
2026
Standard Deduction |
2026
+ Age 65 or Over or Blind (EACH) |
|
|---|---|---|---|---|
|
Married Filing Jointly or Qualifying Widow(er) |
$ 31,500 | $ 1,600 | $ 32,200 | $ 1,650 |
| Single | $ 15,750 | $ 2,000 | $ 16,100 | $ 2,050 |
| Head of Household | $ 23,625 | $ 2,000 | $ 24,150 | $ 2,050 |
| Married Filing Separately | $ 15,750 | $ 1,600 | $ 16,100 | $ 1,650 |
SOCIAL SECURITY/SELF-EMPLOYMENT TAX
| Taxable Wages | (%) | Maximum Amount | S.E. (%) | Maximum S.E. | |
|---|---|---|---|---|---|
| 2026 | $ 0 - 184,500 | 7.65% | $ 14,114 | 15.3% | $28,229 |
| 2026 | $184,501 and above | 1.45% | unlimited | 2.9% | unlimited |
The normal three components of the Social Security Tax are:
- 1. Social Security Tax5.60%
- 2. Disability.60%
- 3. Medicare Hospital1.45%
- Paid by Employees & Employers7.65%*
* The Self-Employment Tax is twice this amount. Also please note that one-half of the self-employment tax is deductible as an adjustment to income.
Note: An additional Medicare Tax Rate of 0.9% is applied to self-employment income and wages over threshold amounts after December 31, 2012.
2025 and 2026 MAXIMUM RETIREMENT PLAN CONTRIBUTIONS
| Plan Type | 2025 | 2025 Age 50 or Over |
2025 Ages 60–63 |
2026 | 2026 Age 50 or Over |
2026 Ages 60–63 |
|---|---|---|---|---|---|---|
| Roth IRA | $ 7,000 | $ 8,000 | $ 8,000 | $ 7,500 | $ 8,600 | $ 8,600 |
| IRA | 7,000 | 8,000 | 8,000 | 7,500 | 8,600 | 8,600 |
| SEP (Self-Employed) | 70,000 | 70,000 | 70,000 | 72,000 | 72,000 | 72,000 |
| SEP (Employee) | 70,000 | 70,000 | 70,000 | 72,000 | 72,000 | 72,000 |
| 403(b)/Roth 403(b) (Employee) | 23,500 | 31,000 | 34,750 | 24,500 | 32,500 | 35,750 |
| 401(k)/Roth 401(k) (Employee) | 23,500 | 31,000 | 34,750 | 24,500 | 32,500 | 35,750 |
| SE Profit Sharing/401(k)s* | 70,000 | 77,500 | 81,250 | 72,000 | 80,000 | 83,250 |
| Single Person 401(k) Plan* | 70,000 | 77,500 | 81,250 | 72,000 | 80,000 | 83,250 |
| SIMPLE | 16,500 | 20,000 | 21,750 | 17,000 | 21,000 | 22,250 |
*401(k) plan limits include elective deferral contributions.
Note: Secure Act 2.0 increased the catch-up contribution for taxpayers aged 60–63 to $11,250 ($5,250 for SIMPLE plans) for 2025 and 2026. Beginning in 2026, high-income earners will be required to use the Roth option for any catch-up contributions made to employer sponsored plans.
Optimal retirement and estate planning is ultimately about making the most of what you’ve worked so hard to build and giving your family long-lasting financial security. You achieve that by implementing tax-savvy strategies, thoughtful withdrawal planning, and estate structures that help your money serve you—and your loved ones—over time. Our “number crunching” CPAs and I can add enormous value by guiding you to make smarter, more tax-efficient financial decisions.
We work in conjunction with several excellent low-cost, data-driven, money management firms that incorporate passive enhanced index investments. They offer perspective and strong service. You pay their investment management fee, which is competitive with typical money management fees.
That same fee, however, also includes our strategic planning and number-crunching analysis at no additional cost. Our CPAs help you establish your initial plan and provide a thorough annual review ensuring your strategy stays aligned with your goals, tax situation, and evolving family needs. This one-fee structure is a significant advantage that very few firms provide.
If working with us in concert with one of our recommended money managers sounds appealing, please call Justin Pape at 1-800-387-1129 to get started.
© James Lange 2026