US Taxes: Federal

Railroad Tier 1 and Tier 2 Wage Limit Changes [Effective January 1, 2026]

Railroad Tier 2 Taxable wage base has increased to

$137,100.00

from $130,800.00 effective January 1, 2026. The tax rates remain unchanged.

Railroad Unemployment Retirement Tier 1 and Tier 2 earnings monthly limit has increased from from $2,065.00 to

$2,150.00

effective January 1, 2026. GPTCI-81506

https://rrb.gov/FinancialReporting/FinancialActuarialStatistical/EarningLimits/COLAs

Federal - Deferred Compensation Limit Updates [Effective January 1, 2026]

The IRS announced the changes to deferred compensation plans. GPTCI-81288

Description	2025 Amount	2026 Amount
Contributions under 401(k) or 403(b) or 408(k)	$23,500.00	$24,500.00
401(k) or 403(b) or 408(k) Standard Catch-Up	$7,500.00	$8,000.00
401(k) or 403(b) or 408(k) Super Catch-Up (ages 60 - 63 at end of year)	$11,250.00	No Change
401k SIMPLE	$16,500.00	$17,000.00
401k SIMPLE Standard Catch-Up	$3,500.00	$4,000.00
401k SIMPLE Super Catch-Up (ages 60 - 63 at end of year)	$5,250.00	No Change
457 Plan	$23,500.00	$24,500.00
457 Plan Catch-Up	$7,500.00	$8,000.00
SIMPLE IRA	$16,500.00	$17,000.00
SIMPLE IRA Catch-Up	$3,500.00	$4,000.00

https://www.irs.gov/pub/irs-drop/n-25-67.pdf

California – FUTA Credit Reduction Applied for 2025 [Effective January 1, 2025]

The United States Department of Labor announced that California would have a FUTA Credit Reduction of 1.20% for 2025, effective 01/01/2025. GPTCI-81185

https://oui.doleta.gov/unemploy/futa_credit.asp

US Virgin Islands – FUTA Credit Reduction Applied for 2025 [Effective January 1, 2025]

The United States Department of Labor announced that US Virgin Islands would have a FUTA Credit Reduction of 4.50% for 2025, effective 01/01/2025. GPTCI-81185

https://oui.doleta.gov/unemploy/futa_credit.asp

Federal Income Tax Withholding Changes [Effective January 1, 2026]

The Internal Revenue Service announced Federal Income Tax Withholding changes, effective 01/01/2026. The Non-Resident Alien Adjustment amounts have increased for 2026 while the Standard Deduction amounts are unchanged from 2025. The Withholding Tables have changed. GPTCI-80991

https://www.irs.gov/pub/irs-dft/p15t--dft.pdf

Federal Casino Profits Withholding Changes [Effective January 1, 2026]

The Internal Revenue Service announced Federal Income Tax Withholding changes from Casino Profits, effective 01/01/2026. The wage brackets and Add-On Tax amounts have changed. GPTCI-80991

https://www.irs.gov/pub/irs-dft/p15t--dft.pdf