2025 Saver's Credit Income Limit
For 2025, the Saver's Credit Income Limit figures are $47,500 (Maximum AGI for the 50% credit rate, married taxpayers filing a joint return), $51,000 (Maximum AGI for the 20% credit rate, married taxpayers filing a joint return), $79,000 (Maximum AGI for the 10% credit rate, married taxpayers filing a joint return) and 10 more figures below.
| Item | Married taxpayers filing a joint return | Taxpayers filing as head of household | All other taxpayers |
|---|---|---|---|
| Maximum AGI for the 50% credit rate | $47,500 | $35,625 | $23,750 |
| Maximum AGI for the 20% credit rate | $51,000 | $38,250 | $25,500 |
| Maximum AGI for the 10% credit rate | $79,000 | $59,250 | $39,500 |
Effective 2025-01-01Source: Notice 2024-80 (IRS)Verified 2026-09-03
Highest-tier applicable percentage, Middle-tier applicable percentage, Lowest non-zero-tier applicable percentageSource: United States Code (2024 edition), Title 26 Section 25B (Office of the Law Revision Counsel)Verified 2026-09-03
Maximum eligible contribution per personSource: Form 8880 (2025), Credit for Qualified Retirement Savings Contributions (IRS)Verified 2026-09-03
Compared with 2024
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| Maximum AGI for the 50% credit rate, married taxpayers filing a joint return | $46,000 | $47,500 | +$1,500 (+3.3%) |
| Maximum AGI for the 20% credit rate, married taxpayers filing a joint return | $50,000 | $51,000 | +$1,000 (+2.0%) |
| Maximum AGI for the 10% credit rate, married taxpayers filing a joint return | $76,500 | $79,000 | +$2,500 (+3.3%) |
| Maximum AGI for the 50% credit rate, taxpayers filing as head of household | $34,500 | $35,625 | +$1,125 (+3.3%) |
| Maximum AGI for the 20% credit rate, taxpayers filing as head of household | $37,500 | $38,250 | +$750 (+2.0%) |
| Maximum AGI for the 10% credit rate, taxpayers filing as head of household | $57,375 | $59,250 | +$1,875 (+3.3%) |
| Maximum AGI for the 50% credit rate, all other taxpayers | $23,000 | $23,750 | +$750 (+3.3%) |
| Maximum AGI for the 20% credit rate, all other taxpayers | $25,000 | $25,500 | +$500 (+2.0%) |
| Maximum AGI for the 10% credit rate, all other taxpayers | $38,250 | $39,500 | +$1,250 (+3.3%) |
| Highest-tier applicable percentage | 50% | 50% | +0% (+0.0%) |
| Middle-tier applicable percentage | 20% | 20% | +0% (+0.0%) |
| Lowest non-zero-tier applicable percentage | 10% | 10% | +0% (+0.0%) |
| Maximum eligible contribution per person | $2,000 | $2,000 | +$0 (+0.0%) |
Maximum AGI for the 50% credit rate
Maximum AGI for the 20% credit rate
Maximum AGI for the 10% credit rate
$23,750$79,000
One dot per column of the table, on a scale running from the smallest of these amounts to the largest. The scale is logarithmic, so that the amounts crowded at the low end stay far enough apart to read. The table states which dot is which.
Who it applies to
Taxpayers who claim the retirement savings contributions credit (Saver's Credit) for 2025
What changed this year, and why
For 2025, the IRS increased the adjusted gross income limits for the retirement savings contributions credit (Saver's Credit) under Internal Revenue Code section 25B. The maximum AGI to qualify for any credit is $79,000 for married taxpayers filing a joint return, $59,250 for taxpayers filing as head of household, and $39,500 for all other taxpayers.
Common questions
- Do these income limits apply to the full credit or a partial credit?
- The income limits are based on your adjusted gross income (AGI). If your AGI exceeds the limit for your filing status, you cannot claim the Saver's Credit.
- Are these limits for the Saver's Credit itself?
- No. The limits apply to the retirement savings contributions credit under Internal Revenue Code section 25B, commonly known as the Saver's Credit.
Every amount on this page is a published figure rather than yours. The Saver's Credit income headroom takes the number you enter and works it out against them, showing which published figure it used.
Three things that disqualify you even under the income limit
Even if your adjusted gross income falls within the limit for the Saver's Credit, you are disqualified from claiming it if any one of three conditions applies to the person who made the retirement contribution. First, that person must not have been born after January 1, 2008, meaning the credit is unavailable for contributions made by young children or minors on a return. Second, the contributor must not be claimed as a dependent on someone else's 2025 tax return; if another taxpayer lists you as a dependent, you cannot claim the credit for your own contributions. Third, the contributor must not have been a student during the tax year. A student is defined as someone enrolled full-time or taking a full-time on-farm training course for any part of five calendar months in 2025. All three disqualifications are listed in the Caution section at the top of Form 8880. If any one of these applies, the credit is not available regardless of income level.
The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 2008; (b) is claimed as a dependent on someone else’s 2025 tax return; or (c) was a student (see instructions).
Form 8880 (2025), Credit for Qualified Retirement Savings Contributions (IRS)
The credit rate falls in steps as income rises
Form 8880 uses a table on line 9 that assigns an "applicable decimal amount" based on your adjusted gross income and filing status. The credit rate starts at the highest level for the lowest income range and steps down as income rises through the brackets. For married taxpayers filing jointly, the maximum adjusted gross income is $79,000. For head of household filers, the maximum is $59,250. For single filers, married filing separately, and qualifying surviving spouses, the maximum is $39,500. As your income approaches these limits, the applicable decimal amount decreases, reducing the credit you receive. Once your income exceeds the maximum for your filing status, the applicable decimal amount becomes zero and you cannot take the credit. The table provides specific income ranges and corresponding rates for each filing status, allowing you to determine exactly which rate applies to your situation.
Enter the applicable decimal amount from the table below.
Form 8880 (2025), Credit for Qualified Retirement Savings Contributions (IRS)
Only the first $2,000 of contributions counts
No matter how much you actually contributed to traditional and Roth IRAs, employer retirement plans, or other qualifying arrangements during the year, only the first $2,000 of those contributions counts toward the Saver's Credit. After you total your contributions on line 3 and subtract any recent distributions on line 5, the form requires you to cap the result: in each column (yours and, if applicable, your spouse's), enter the smaller of line 5 or $2,000. This cap applies separately to each spouse, so a married couple filing jointly could have a larger combined total of eligible contributions even if they saved far more. Any contributions above $2,000 per person are simply ignored for purposes of this credit. The capped amount is then added together on line 7 and multiplied by the applicable decimal rate. Because the cap is per person, a single taxpayer or a married couple where only one spouse contributed is limited to $2,000 of qualifying savings.
In each column, enter the smaller of line 5 or $2,000
Form 8880 (2025), Credit for Qualified Retirement Savings Contributions (IRS)
Recent withdrawals cut the contributions you can count
If you received distributions from a retirement plan or IRA after 2022 and before the due date (including extensions) of your 2025 tax return, those withdrawals reduce the contributions eligible for the Saver's Credit. On Form 8880, line 4 asks you to report the total of such distributions, and line 5 subtracts that amount from your total contributions. This rule prevents taxpayers from taking money out of retirement accounts and then claiming a credit for new contributions that effectively replace the withdrawn funds. For married couples filing jointly, both spouses' distributions must be included. Certain distributions are excluded from this reduction, such as rollovers, trustee-to-trustee transfers, in-plan Roth conversions, and loans treated as distributions. After the reduction, the remaining contribution amount is further limited to the amount shown on line 6. If the result is zero or less, no credit is available.
Certain distributions received after 2022 and before the due date (including extensions) of your 2025 tax return (see instructions).
Form 8880 (2025), Credit for Qualified Retirement Savings Contributions (IRS)
The credit cannot exceed the tax you owe
The Saver's Credit is nonrefundable, meaning it cannot exceed the amount of federal income tax you owe. The Credit Limit Worksheet in the instructions computes this ceiling by starting with your tax from Form 1040, line 18, and subtracting certain other nonrefundable credits you are claiming from Schedule 3, lines 1 through 3, 6d, and 6l. The result is entered on Form 8880, line 11. The actual credit you receive is the smaller of the amount calculated from your contributions and rate tier (line 10) or this tax-liability limitation (line 11). If the Credit Limit Worksheet result is zero or less, you cannot take the credit at all and should not file the form. This limitation ensures the Saver's Credit reduces your tax bill but does not generate a refund beyond the tax you owe for the year.
3. Subtract line 2 from line 1. Also enter this amount on Form 8880, line 11. But if zero or less, stop; you can’t take the credit—don’t file this form . 3.
Form 8880 (2025), Credit for Qualified Retirement Savings Contributions (IRS)
Being a student for even part of five months can disqualify you
For 2025, you cannot claim the Saver's Credit if you were a student during any part of five calendar months of the year. This means that even if you were enrolled full-time for just a portion of each of five different months, you are disqualified from taking the credit. The student definition includes being enrolled as a full-time student at a school or taking a full-time on-farm training course given by a school or government agency. A school includes technical, trade, and mechanical schools, but does not include on-the-job training courses, correspondence schools, or schools offering courses only through the Internet. If you meet this student test for even part of five months in 2025, you are not eligible for the credit regardless of your income level or retirement contributions.
You were a student if during any part of 5 calendar months of 2025 you: • Were enrolled as a full-time student at a school; or • Took a full-time, on-farm training course given by a school or a state, county, or local government agency.
Form 8880 (2025), Credit for Qualified Retirement Savings Contributions (IRS)
The form used, and where the credit lands on your return
To claim the Saver's Credit for 2025, you must complete Form 8880 and attach it to your Form 1040, 1040-SR, or 1040-NR. After calculating the credit amount on Form 8880, you enter the result on Schedule 3 (Form 1040), line 4. This placement means the credit flows through to your main tax return and reduces your total tax liability, subject to the limitation based on your tax liability shown on the Credit Limit Worksheet in the instructions. The credit cannot exceed your tax liability for the year.
Enter the smaller of line 10 or line 11 here and on Schedule 3 (Form 1040), line 4
Form 8880 (2025), Credit for Qualified Retirement Savings Contributions (IRS)
This credit stacks on top of the separate IRA deduction
The Saver's Credit can be claimed in addition to any IRA deduction you claim on your tax return. This means that if you make a deductible contribution to a traditional IRA, you can both deduct that contribution on Schedule 1 (Form 1040), line 20, and also claim the Saver's Credit for the same contribution on Form 8880. The credit stacks on top of the deduction, providing a double benefit for retirement savers. The two benefits are calculated separately and do not reduce each other.
This credit can be claimed in addition to any IRA deduction claimed on Schedule 1 (Form 1040), line 20.
Form 8880 (2025), Credit for Qualified Retirement Savings Contributions (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Notice 2024-80 (IRS)
- Maximum AGI for the 50% credit rate, married taxpayers filing a joint return
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for married taxpayers filing a joint return is increased from $46,000 to $47,500; the limitation under section 25B(b)(1)(B) is increased from $50,000 to $51,000; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $76,500 to $79,000.
- Maximum AGI for the 20% credit rate, married taxpayers filing a joint return
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for married taxpayers filing a joint return is increased from $46,000 to $47,500; the limitation under section 25B(b)(1)(B) is increased from $50,000 to $51,000; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $76,500 to $79,000.
- Maximum AGI for the 10% credit rate, married taxpayers filing a joint return
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for married taxpayers filing a joint return is increased from $46,000 to $47,500; the limitation under section 25B(b)(1)(B) is increased from $50,000 to $51,000; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $76,500 to $79,000.
- Maximum AGI for the 50% credit rate, taxpayers filing as head of household
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for taxpayers filing as head of household is increased from $34,500 to $35,625; the limitation under section 25B(b)(1)(B) is increased from $37,500 to $38,250; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $57,375 to $59,250.
- Maximum AGI for the 20% credit rate, taxpayers filing as head of household
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for taxpayers filing as head of household is increased from $34,500 to $35,625; the limitation under section 25B(b)(1)(B) is increased from $37,500 to $38,250; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $57,375 to $59,250.
- Maximum AGI for the 10% credit rate, taxpayers filing as head of household
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for taxpayers filing as head of household is increased from $34,500 to $35,625; the limitation under section 25B(b)(1)(B) is increased from $37,500 to $38,250; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $57,375 to $59,250.
- Maximum AGI for the 50% credit rate, all other taxpayers
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for all other taxpayers is increased from $23,000 to $23,750; the limitation under section 25B(b)(1)(B) is increased from $25,000 to $25,500; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $38,250 to $39,500.
- Maximum AGI for the 20% credit rate, all other taxpayers
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for all other taxpayers is increased from $23,000 to $23,750; the limitation under section 25B(b)(1)(B) is increased from $25,000 to $25,500; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $38,250 to $39,500.
- Maximum AGI for the 10% credit rate, all other taxpayers
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for all other taxpayers is increased from $23,000 to $23,750; the limitation under section 25B(b)(1)(B) is increased from $25,000 to $25,500; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $38,250 to $39,500.
United States Code (2024 edition), Title 26 Section 25B (Office of the Law Revision Counsel)
- Highest-tier applicable percentage
if the adjusted gross income of the tax- payer is not over $30,000, 50 percent,
- Middle-tier applicable percentage
if the adjusted gross income of the tax- payer is over $30,000 but not over $32,500, 20 percent,
- Lowest non-zero-tier applicable percentage
if the adjusted gross income of the tax- payer is over $32,500 but not over $50,000, 10 percent,
Form 8880 (2025), Credit for Qualified Retirement Savings Contributions (IRS)
- Maximum eligible contribution per person
In each column, enter the smaller of line 5 or $2,000