Back to top

Tax Facts

2016 Tax Facts

  • For 2016 - The standard mileage rate for all business use of automobiles is 54 cents per mile.  The standard mileage rate for charitable purposes is 14 cents per mile and the rate for medical purposes is 16 cents per mile.  For 2015 - The standard mileage rate for all business use of automobiles was 57.5 cents per mile . The standard mileage rate for charitable purposes was 14 cents per mile and the rate for medical purposes was 23 cents per mile. 
  • The social security wage base is unchanged from 2015 - $118,500. The employer and employee rates are 6.2%.  The maximum amount of tax is $7,347. The Medicare wage base remains the same - 100% of qualified wages.
  • The maximum Code Section 179 depreciation expense for 2016 is $500,000 of acquired qualifying assets (maximum amount of $2,000,000).  
  • The maximum amount of Section 401(k) or 403(b) deferral is $18,000.  The maximum "catch up" amount is $6,000 ($24,000 total). 
  • IRA contribution limit (Traditional and Roth) is $5,500.  The maximum "catch up" amount is $1,000. 
  • The maximum SIMPLE contribution limit is $12,500.  The maximum "catch up" amount is $3,000.
  • The maximum "SEP" contribution limit is $53,000.  
  • HSA Contribution and Plan Limits - Single - Minimum Deductible is $1,300, Contribution Limit is $3,350, over 55 catch up is $1,000.  Family - Minimum Deductible is $2,600, Contribution Limit is $6,750, over 55 catch up is $1,000.
  • For 2016 - Unified estate and gift tax exemption is $5,450,000.  The top tax rate is 40%.  Annual gift tax exclusion is $14,000.
  • The Commonwalth of Pennsylvania withholding rate is 3.07%.
  • City of Philadelphia wage tax rates - the Resident rate is 3.9102% and the non-resident rate is 3.4828%.
  • Pennsylvania - 2016 Unemployment wage base is $9,500.  2015 Unemployment wage base was $9,000.
  • New Jersey - 2016 Unemployment wage base is $32,600.  2015 Unemployment wage base was $32,000.  
  • Delaware - 2016 Unemployment wage base is $18,500.  2015 Unemployment wage base was $18,500.  

 

Minimum Wage Rates

 

  • Federal - $7.25 per hour; Minimum Cash Wage (Tipped Employee) - $2.13
  • Pennsylvania - $7.25 per hour
  • Maryland - $8.25 per hour (increases to $8.75 on July 1, 2016)
  • Delaware - $8.25 per hour
  • New Jersey - $8.38 per hour
  • New York - $9.00 per hour