2026 Tax Limits
Minimum Wage:
Federal: $7.25
PA: $7.25
NJ: $15.92
Minimum Wage with Tips:
Federal: $2.13
PA: $2.83
NJ: $6.05
FICA:
Maximum earnings: $184,500
Employer percentage: 6.2%
Maximum Deduction: $11,439.00
Self-Employment Tax: 12.4%
Employee percentage: 6.2%
Maximum Deduction: $11,439.00
Medicare:
Employee/Employer percentage: 1.45%
Wages Paid in excess of $200,000: additional employee tax of 0.9%
Self-Employment Tax: 2.90%
FUTA:
Rate: 6.0%
Maximum credit: 5.4%
Normal net tax: 0.6%
Maximum Earnings: $7,000.00
PA State Tax:
State percentage: 3.07%
Philadelphia Resident: 3.74%
Philadelphia Non-resident: 3.43%
Local jurisdictions: as applicable
PA SUI:
Employee percentage: .07%
Employer percentage: contribution rates vary by employer
Maximum Earnings: $10,000.00
401(k) Limits:
Annual elective deferral limit: $24,500
“Catch-up” contribution limit: $8,000 (must be 50 years old by the end of the plan year)
Increased “catch-up” (ages 60-63): $3,250
Simple IRA Limits:
Annual elective deferral limit: $17,000
“Catch-up” contribution limit (must be 50 years old by the end of the plan year): $4,000
Increased “catch-up” (ages 60-63): $5,250
Mileage allowance:
Business purposes: 72.5 cents/mile (Jan-June 2026); 76 cents/mile (effective 7/1/26)
Charitable purposes: 14 cents/mile
Medical purposes: 20.5 cents/mile
Moving purposes: 20.5 cents/mile