Saver’s Credit Estimator (2026)
Your Estimated Saver’s Credit
What Is the Saver’s Credit?
The Saver’s Credit is a federal tax credit offered by the Internal Revenue Service to encourage low- and moderate-income individuals to save for retirement.
Unlike a tax deduction, a tax credit directly reduces your tax bill.
For example:
- A $500 deduction lowers your taxable income.
- A $500 credit lowers your actual tax owed by $500.
That makes this credit powerful.
Who Qualifies for the Saver’s Credit?
You may qualify if:
- You are 18 or older
- You are not a full-time student
- You are not claimed as a dependent on someone else’s return
- You contribute to a qualified retirement account
- Your income falls within the limits
Eligible retirement accounts include:
- 401(k)
- 403(b)
- Traditional IRA
- Roth IRA
- Certain government plans
If you meet these rules, the calculator can estimate your potential credit.
2026 Saver’s Credit Income Limits
Your credit rate depends on two things:
- Your filing status
- Your Adjusted Gross Income (AGI)
Here are the 2026 thresholds built into the calculator:
Married Filing Jointly
| AGI | Credit Rate |
|---|---|
| $48,000 or less | 50% |
| $48,001 – $52,000 | 20% |
| $52,001 – $79,000 | 10% |
| Above $79,000 | 0% |
Maximum eligible contribution: $4,000
Head of Household
| AGI | Credit Rate |
|---|---|
| $36,000 or less | 50% |
| $36,001 – $39,000 | 20% |
| $39,001 – $59,250 | 10% |
| Above $59,250 | 0% |
Maximum eligible contribution: $2,000
Single or Other Filers
| AGI | Credit Rate |
|---|---|
| $24,000 or less | 50% |
| $24,001 – $26,000 | 20% |
| $26,001 – $39,500 | 10% |
| Above $39,500 | 0% |
Maximum eligible contribution: $2,000
How the Saver’s Credit Calculator Works
The calculator uses three inputs:
- Filing Status
- Adjusted Gross Income (AGI)
- Total Retirement Contributions
Here’s what happens behind the scenes:
Step 1: Contribution Cap
- If you are married filing jointly, contributions are capped at $4,000.
- All others are capped at $2,000.
Even if you contributed more, only the capped amount counts toward the credit.
Step 2: Income Tier Check
Your AGI determines your credit rate:
- 50%
- 20%
- 10%
- Or 0%
Step 3: Credit Calculation
The formula is simple:
Eligible Contribution × Credit Rate = Saver’s Credit
Example:
- Single filer
- AGI: $22,000
- Contribution: $2,000
Credit rate = 50%
$2,000 × 50% = $1,000 credit
That is a direct reduction of your tax bill.
Example Scenarios
Example 1: Married Couple
- Filing jointly
- AGI: $50,000
- Contribution: $4,000
Credit rate = 20%
$4,000 × 20% = $800 credit
Example 2: Head of Household
- AGI: $35,000
- Contribution: $1,500
Credit rate = 50%
$1,500 × 50% = $750 credit
Example 3: Income Too High
- Single filer
- AGI: $45,000
Credit rate = 0%
No credit applies.
The calculator will display a message that your income exceeds the 2026 limit.
Why the Saver’s Credit Matters
Many eligible taxpayers miss this credit each year.
Here’s why it’s valuable:
- It stacks on top of your retirement contribution tax deduction.
- It encourages long-term investing.
- It rewards early saving habits.
- It lowers your total tax bill.
If you are already contributing to retirement, you may qualify without realizing it.
Important Things to Know
1. This Is a Non-Refundable Credit
The Saver’s Credit can reduce your tax to zero, but it will not generate a refund beyond what you owe.
2. Contributions Must Be Qualified
Only eligible retirement contributions count.
3. Income Is Based on AGI
Your Adjusted Gross Income matters, not gross salary.
4. Annual Limits May Change
The IRS updates thresholds periodically. The calculator reflects 2026 estimates.
How to Use the Saver’s Credit Calculator
Using the calculator is simple:
- Select your filing status.
- Enter your Adjusted Gross Income.
- Enter your total retirement contributions.
- Click “Estimate Credit.”
The result will show:
- Your estimated federal tax credit
- Your credit tier percentage
- Whether your contribution was capped
If your income exceeds the limit, it will clearly say so.