Updated October 1, 2026. Quick answer: For 2026 the Saver’s Credit pays 50%, 20% or 10% of retirement contributions, depending on adjusted gross income. The income limit, above which the credit is zero, is $80,500 for married couples filing jointly, $60,375 for heads of household and $40,250 for singles and married individuals filing separately. IRS Notice 2025-67 sets the ceilings.
Related reading on this site: IRS Publication 907.
IRS worksheets read line by line: Form 8880 Credit Limit Worksheet.
Related reading on this site: IRS Publication 590-A.
Business use of your home (Form 8829), the saver’s credit (Form 8880), clean vehicle credits (Form 8936) and amended returns (Form 1040-X), read line by line: Form 8880, Form 8880 lines 1 to 5 and Form 8880 line 12.
Schedule 3 (Form 1040) for 2025, read line by line: Schedule 3 line 4.
Form 1040 for 2025, lines 12 to 38 read line by line: Form 1040 lines 19 to 21, Form 1040 line 28 and Form 1040 lines 29 to 31.
More IRS forms and schedules, read line by line: Schedule 1 (Form 1040) guide.
2026 adjusted gross income ceilings by credit rate
| Filing status | 50% credit: AGI not more than | 20% credit: AGI not more than | 10% credit: AGI not more than |
|---|---|---|---|
| Married filing jointly | $48,500 | $52,500 | $80,500 |
| Head of household | $36,375 | $39,375 | $60,375 |
| Single, married filing separately and other filers | $24,250 | $26,250 | $40,250 |
Above the last column the credit is zero. IRS Notice 2025-67 says the limit under section 25B(b)(1)(C) and (D) “is increased from $79,000 to $80,500” for joint filers, and the IRS news release says “The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $80,500 for married couples filing jointly, up from $79,000 for 2025; $60,375 for heads of household, up from $59,250 for 2025; and $40,250 for singles and married individuals filing separately, up from $39,500 for 2025.”
How much the credit is worth
The IRS says “the amount of the credit is 50%, 20% or 10% of” your qualifying contributions, and “The maximum contribution amount that may qualify for the credit is $2,000 ($4,000 if married filing jointly), making the maximum credit $1,000 ($2,000 if married filing jointly).” At the 50% rate, $1,000 of credit comes from a $2,000 contribution (computed). Qualifying contributions include “contributions you make to a traditional or Roth IRA, elective salary deferral contributions to a 401(k), 403(b), governmental 457(b), SARSEP, or SIMPLE plan”.
Who can claim it
The IRS page says you are eligible if you are “Age 18 or older, Not claimed as a dependent on another person’s return, and Not a student.” Rollover contributions do not qualify. The IRS describes the credit for contributions to retirement plans and IRAs; for what applies to 2027 contributions, see the 2027 Saver’s Credit page.
Common mistakes
- Using the 2025 limits. Each ceiling rose for 2026.
- Assuming a cliff at the 50% ceiling. The credit steps down to 20% and then 10% before it ends.
- Counting rollovers as contributions. They do not qualify.
- Claiming it as a full-time student or a dependent. Both disqualify.
Related: the 2027 Saver’s Credit page, Roth versus traditional IRA, the 2026 retirement numbers hub, and the 2026 Roth IRA income limits.
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Answer againSources
- IRS Notice 2025-67, 2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living: https://www.irs.gov/pub/irs-drop/n-25-67.pdf
- IRS news release IR-2025-111 (Nov. 13, 2025), 401(k) limit increases to $24,500 for 2026: https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500
- IRS, Retirement savings contributions credit (Saver’s Credit): https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
Sources: the primary documents linked above, read on October 1, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.