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Financial accounting master Master’s student in financial accounting / passionate about finance & number
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THE PAYROLL TAX DEDUCTIONEmployee F**A: 7.65%Social Security: 6.2%Medicare: 1.45%Total employee F**A: 7.65%Employers gen...
25/09/2026

THE PAYROLL TAX DEDUCTION

Employee F**A: 7.65%

Social Security: 6.2%

Medicare: 1.45%

Total employee F**A: 7.65%

Employers generally pay an additional 7.65% for Social Security and Medicare.

2026 EXAMPLE

Gross Pay: $5,000.00

Social Security — 6.2%: − $310.00

Medicare — 1.45%: − $72.50

Total F**A: − $382.50

PAY AFTER F**A

$5,000.00 − $382.50 = $4,617.50

This is before federal income-tax withholding, state/local taxes, health insurance, retirement contributions, and other deductions.

2026 SOCIAL SECURITY LIMIT

Maximum taxable Social Security earnings: $184,500

At the 6.2% employee rate, the maximum employee Social Security tax is $11,439 for 2026. Medicare continues to apply to all covered wages.

HIGHER-EARNER MEDICARE TAX

Employees can also have an additional 0.9% Medicare tax withheld on wages above $200,000 in a calendar year. There is no employer match for this additional 0.9%.

PAYROLL TAX IS DIFFERENT FROM FEDERAL INCOME TAX.

2026 U.S. PAYROLL TAX UPDATE.

2026 ANNUAL GIFT TAX EXCLUSION STRATEGY — UPDATEDThe IRS allows individuals to give up to $19,000 per recipient each yea...
25/09/2026

2026 ANNUAL GIFT TAX EXCLUSION STRATEGY — UPDATED

The IRS allows individuals to give up to $19,000 per recipient each year without using their lifetime gift and estate tax exemption, provided the gift qualifies for the annual exclusion.

2026 Annual Gift Tax Exclusion

$19,000 per recipient per year

$38,000 per recipient if spouses combine their exclusions, subject to the applicable rules.

Example Calculation

Mr. John has 3 children and 2 grandchildren

Number of recipients = 5
Annual exclusion = $19,000

5 × $19,000 = $95,000 per year

So, John can make qualifying annual-exclusion gifts of up to $95,000 per year to those 5 recipients without those amounts counting toward his lifetime basic exclusion amount.

10-Year Example

$95,000 × 10 = $950,000

Over 10 years, that would total $950,000 in qualifying annual-exclusion gifts, assuming the exclusion and circumstances remain unchanged.

Married Couple Example

If both spouses qualify to use their annual exclusions:

$19,000 + $19,000 = $38,000 per recipient

For 5 recipients:

$38,000 × 5 = $190,000 per year

Over 10 years:

$190,000 × 10 = $1,900,000

2026 Estate & Gift Tax Update

For individuals who die in 2026, the federal basic estate-tax exclusion is $15 million.

Important 2026 Update

The IRS also issued Revenue Procedure 2026-25, providing a safe harbor for certain contributions to Trump Accounts. When the stated requirements are met, qualifying contributions can receive annual gift-tax exclusion treatment without requiring a gift-tax return for those contributions.

Key figures for 2026:
$19,000 annual exclusion per recipient
$15 million basic estate-tax exclusion
$194,000 annual exclusion for gifts to a non-U.S.-citizen spouse.

🇺🇸 U.S. PERSONAL INCOME TAX — 2026🧾 Federal Tax BracketsProgressive rates — higher taxable income reaches higher margina...
25/09/2026

🇺🇸 U.S. PERSONAL INCOME TAX — 2026

🧾 Federal Tax Brackets

Progressive rates — higher taxable income reaches higher marginal rates

2026 Single Filers

10% — $0–$12,400

12% — $12,401–$50,400

22% — $50,401–$105,700

24% — $105,701–$201,775

32% — $201,776–$256,225

35% — $256,226–$640,600

37% — Over $640,600

Standard Deduction 2026

Single: $16,100

Married Filing Jointly: $32,200

Head of Household: $24,150

🏛️ State Income Taxes

State rules vary widely.

Some states have no individual income tax.

Other states use flat or graduated rates.

State and local income taxes can apply in addition to federal tax.

📈 Capital Gains Tax

Short-Term Gains

Assets held 1 year or less

Generally taxed at ordinary income tax rates.

Long-Term Gains

Assets held more than 1 year

Preferential federal rates generally include 0%, 15%, and 20%, depending on taxable income.

💰 Qualified Dividends

Generally receive preferential 0%, 15%, or 20% federal rates.

Non-qualified dividends are generally taxed at ordinary income rates.

2026 0% / 15% thresholds

Single: $49,450 / $545,500

Married Filing Jointly: $98,900 / $613,700

Head of Household: $66,200 / $579,600

⚠️ Alternative Minimum Tax (AMT)

Separate tax system that can affect certain taxpayers.

2026 AMT exemption:

Single: $90,100

Married Filing Jointly: $140,200

AMT rates: 26% and 28%.

🧮 Important 2026 Changes

The seven federal individual rates remain 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

The standard deduction increased for 2026.

Tax rules for deductions, credits and investments have also been updated for 2026.

🇺🇸 U.S. STATE INCOME TAXES — 2026NO INDIVIDUAL INCOME TAX — 8 STATESAlaskaFloridaNevadaNew HampshireSouth DakotaTennesse...
25/09/2026

🇺🇸 U.S. STATE INCOME TAXES — 2026

NO INDIVIDUAL INCOME TAX — 8 STATES

Alaska

Florida

Nevada

New Hampshire

South Dakota

Tennessee

Texas

Wyoming

FLAT INCOME TAX — 15 STATES

Arizona — 2.5%

Colorado — 4.4%

Georgia — 5.19%

Idaho — 5.3%

Illinois — 4.95%

Indiana — 2.95%

Iowa — 3.8%

Kentucky — 3.5%

Louisiana — 3.0%

Michigan — 4.25%

Mississippi — 4.0%

North Carolina — 3.99%

Ohio — 2.75%

Pennsylvania — 3.07%

Utah — 4.5%

GRADUATED / PROGRESSIVE INCOME TAX — 26 STATES + D.C. Alabama, Arkansas, California, Connecticut, Delaware, Hawaii, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Dakota, Oklahoma, Oregon, Rhode Island, South Carolina, Vermont, Virginia, West Virginia, Wisconsin + Washington, D.C.

📊 2026 TOP MARGINAL RATES — SELECT STATES

California — 13.3%

Hawaii — 11.0%

New York — 10.9%

New Jersey — 10.75%

Oregon — 9.9%

Minnesota — 9.85%

Massachusetts — 9.0%

Vermont — 8.75%

🆕 IMPORTANT 2026 CHANGES

Arkansas: top individual rate reduced to 3.7% retroactive to January 1, 2026.

Kentucky: flat rate reduced to 3.5%.

Mississippi: rate reduced to 4.0%, with further scheduled reductions.

Nebraska: top rate reduced to 4.55%.

North Carolina: final phase-down reached 3.99%.

Ohio: moved to a 2.75% flat rate on nonbusiness income above $26,050.

Oklahoma: top rate reduced to 4.5%.

Washington: its individual tax remains focused on capital gains, with a top rate of 9% on capital gains above $1 million.

U.S. States With Graduated/Progressive Income Tax — 2026As of January 1, 2026:States with graduated-rate income taxesAla...
25/09/2026

U.S. States With Graduated/Progressive Income Tax — 2026

As of January 1, 2026:

States with graduated-rate income taxes

Alabama
Arkansas
California
Connecticut
Delaware
Hawaii
Kansas
Maine
Maryland
Massachusetts
Minnesota
Missouri
Montana
Nebraska
New Jersey
New Mexico
New York
North Dakota
Oklahoma
Oregon
Rhode Island
South Carolina
Vermont
Virginia
West Virginia
Wisconsin

Plus: District of Columbia

Tax Foundation classifies 26 states + D.C. as having graduated-rate individual income taxes in 2026.

Important 2026 updates

Nebraska: top rate fell to 4.55% in 2026.

Montana: top rate fell to 5.65%.

Oklahoma: top rate fell to 4.5% and brackets were reduced to three.

Maryland: higher brackets of 6.25% and 6.50% apply to higher incomes.

Washington: has a graduated capital-gains tax, including a 9% top rate above $1 million; it is not a general wage-income tax.

California: ranges from 1% to 13.3% across its individual income-tax brackets.

New York: reaches 10.9% at very high taxable incomes.

States with NO individual income tax in 2026

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Wyoming.

Key correction to the sample

The sample's “Texas $120,000 → $8,600+” entry should not be presented as state individual income tax. Texas has no individual state income tax in 2026.

🇺🇸 U.S. States With Progressive Income Tax — 2026States with Graduated/Progressive Income Tax1. Alabama2. Arkansas3. Cal...
25/09/2026

🇺🇸 U.S. States With Progressive Income Tax — 2026

States with Graduated/Progressive Income Tax

1. Alabama

2. Arkansas

3. California

4. Connecticut

5. Delaware

6. Hawaii

7. Kansas

8. Maine

9. Maryland

10. Massachusetts

11. Minnesota

12. Missouri

13. Montana

14. Nebraska

15. New Jersey

16. New Mexico

17. New York

18. North Dakota

19. Oklahoma

20. Oregon

21. Rhode Island

22. South Carolina

23. Vermont

24. Virginia

25. Washington*

26. West Virginia

27. Wisconsin

28. Washington, D.C.

*Washington's individual income tax applies to high-earner capital gains, rather than ordinary wage income.

🚫 States With No Individual Income Tax — 2026

Alaska

Florida

Nevada

New Hampshire

South Dakota

Tennessee

Texas

Wyoming

That's 8 states with no individual income tax.

⚠️ Important 2026 Updates

Ohio moved to a 2.75% flat rate for nonbusiness income over $26,050, so it should not appear in the progressive list.

Oklahoma reduced its top marginal rate from 4.75% to 4.5% and consolidated its brackets.

Arkansas reduced its top individual rate to 3.7%, retroactive to January 1, 2026.

California's top marginal rate is 13.3% when the additional 1% mental-health tax is included.

L.

🧠 Accounting Quiz! What’s your answer? 👇📚 Financial accounting master
25/09/2026

🧠 Accounting Quiz! What’s your answer? 👇📚 Financial accounting master

Accrued Income 📚💰 — Income earned but not yet received.Follow for more accounting tips!
25/09/2026

Accrued Income 📚💰 — Income earned but not yet received.
Follow for more accounting tips!

Bad Debts vs Provision for Doubtful Debts 📚✍️Know the difference and master the accounting treatment!
25/09/2026

Bad Debts vs Provision for Doubtful Debts 📚✍️
Know the difference and master the accounting treatment!

25/09/2026

📘 Reducing Balance Method — simple, clear & practical! ✍️📊
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