Every year, the amounts allowed for various federal tax benefits are subject to change based on inflation adjustments and legislation. This chart provides some tax figures for 2024, compared with 2023, including the estate tax exemption, Social Security wage base, qualified retirement plan and IRA contribution limits, driving deductions and more.

Social Security/ Medicare 2024 2023
Social Security Tax Wage Base $168,600 $160,200
Medicare Tax Wage Base No limit No limit
Employee portion of Social Security 6.2% 6.2%
Employee portion of Medicare 1.45% 1.45%
Individual Retirement Accounts 2024 2023
Roth IRA Individual, up to 100% of earned income $7,000 $6,500
Traditional IRA Individual, up to 100% of earned Income $7,000 $6,500
Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older $1,000 $1,000
Qualified Plan Limits 2024 2023
Defined Contribution Plan limit on additions (Sections 415(c)(1)(A)) $69,000 $66,000
Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)) $275,000 $265,000
Maximum compensation used to determine contributions $345,000 $330,000
401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) $23,000 $22,500
401(k), 403(b), 457 & SARSEP additional “catch-up” contributions for employees age 50 and older $7,500 $7,500
SIMPLE deferrals (Section 408(p)(2)(A)) $16,000 $15,500
SIMPLE additional “catch-up” contributions for employees age 50 and older $3,500 $3,500
Compensation defining highly compensated employee (Section 414(q)(1)(B)) $155,000 $150,000
Compensation defining key employee (officer) in a top-heavy plan $220,000 $215,000
Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c)) $750 $750
Driving Deductions 2024 2023
Business mileage, per mile 67 cents 65.5 cents
Charitable mileage, per mile 14 cents (the rate is set by statute) 14 cents (the rate is set by statute)
Medical and eligible moving*, per mile 21 cents 22 cents
Business Equipment 2024 2023
Maximum Section 179 deduction $1.22 million $1.16 million
Phase out for Section 179 $3.05 million $2.89 million
Business Meals 2024 2023
General deduction for eligible business-related food and beverage expenses 50% 50%
Transportation Fringe Benefit Exclusion 2024 2023
Monthly commuter highway vehicle and transit pass $315 $300
Monthly qualified parking $315 $300
Standard Deduction 2024 2023
Married filing jointly $29,200 $27,700
Single (and married filing separately) $14,600 $13,850
Heads of Household $21,900 $20,800
Domestic Employees 2024 2023
Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. $2,700 $2,600
Kiddie Tax 2024 2023
Amount used to reduce the net unearned income reported on a child’s return that’s subject to the Kiddie Tax $1,300 $1,250
Estate Tax 2024 2023
Federal estate tax exemption $13.61 million $12.92 million
Maximum estate tax rate 40% 40%
Annual Gift Exclusion 2024 2023
Amount you can give each recipient $18,000 $17,000
Alternative Minimum Tax exemption 2024 2023
Married filing jointly $133,300
and begins to phase out at $1,218,700
$126,500
and begins to phase out at $1,156,300
Single $85,700

and begins to phase out at $609,350

$81,300
and begins to phase out at $$578,150

* Only available for active-duty members of the military.