Legal ways to reduce your taxable income and maximize take-home pay — from standard deductions to pre-tax benefits.
Take this if your itemized deductions total less than these amounts. Most Americans use the standard deduction.
| Benefit | 2026 Limit | Tax Savings (22% bracket) | Best For |
|---|---|---|---|
| 401k / 403b Contribution | $23,500 | $5,170/yr | Everyone with access |
| 401k Catch-Up (age 50+) | $31,000 | $6,820/yr | Over 50 |
| HSA (HDHP required) | $4,300 / $8,550 | $946–$1,881/yr | Healthy, younger workers |
| FSA (Flexible Spending) | $3,300 | $726/yr | Predictable medical costs |
| Dependent Care FSA | $5,000 | $1,100/yr | Parents paying for childcare |
| Commuter Benefits | $330/mo | $871/yr | Urban employees |
Example: $90,000 salary, single filer in Texas, 22% federal bracket
You save $7,808/yr in taxes. The $27,800 goes to tax-advantaged accounts — still yours.
Deduct up to $2,500 of student loan interest per year — no itemizing required. Phase-out starts at $75,000 income (single).
Traditional IRA contributions up to $7,000/year ($8,000 if 50+) are deductible if you meet income limits and don't have a workplace plan.
Self-employed? Deduct half of your self-employment tax (7.65% of net earnings) directly from gross income.
Self-employed individuals can deduct 100% of health insurance premiums for themselves and their family above the line.
See how much you keep after all taxes with our free gross-to-net salary calculator.
Calculate Take-Home Pay — Free →