---
title: Tax Limits for Businesses Have Increased for 2022
description: CRR's Kyle Grossi discusses the increased tax limits that may impact your business in 2022.
---

[CRR Advisors Blog: Tax, Accounting & Business Advisory Insights | Boston, MA](https://www.crradvisors.com/blog)

# [Tax Limits for Businesses Have Increased for 2022](https://www.crradvisors.com/blog/tax-limits-for-businesses-have-increased-for-2022)

 Written by [Kyle Grossi](https://www.crradvisors.com/blog/author/kyle-grossi) | Jan 25, 2022, 2:23:47 PM

Many tax limits that affect businesses are annually indexed for inflation, and a number of them have increased for 2022. Here’s a rundown of those that may be important to you and your business.

###### **Social Security tax**

The amount of an employee’s earnings that is subject to Social Security tax is capped for 2022 at $147,000 (up from $142,800 in 2021).

###### **Deductions **

- Standard business mileage rate, per mile: 58.5 cents (up from 56 cents in 2021)
- Section 179 expensing:
- Income-based phase-out for certain limits on the Sec. 199A qualified business income deduction begins at:

###### **Business meals**

In 2022 and 2021, the deduction for eligible business-related food and beverage expenses provided by a restaurant is 100% (up from 50% in 2020).

###### **Retirement plans **

- Employee contributions to 401(k) plans: $20,500 (up from $19,500 in 2021)
- Catch-up contributions to 401(k) plans: $6,500 (unchanged)
- Employee contributions to SIMPLEs: $14,000 (up from $13,500)
- Catch-up contributions to SIMPLEs: $3,000 (unchanged)
- Combined employer/employee contributions to defined contribution plans: $61,000 (up from $58,000)
- Maximum compensation used to determine contributions: $305,000 (up from $290,000)
- Annual limit for defined benefit plans: $245,000 (up from $230,000)
- Compensation defining a highly compensated employee: $135,000 (up from $130,000)
- Compensation defining a “key” employee: $200,000 (up from $185,000) 

###### **Other employee benefits**

- Qualified transportation fringe-benefits employee income exclusion: $280 per month (up from $270 per month)
- Health Savings Account contributions:
- Health care Flexible Spending Account contributions: $2,850 (up from $2,750)

This is just an overview of the tax limits, and additional rules may apply. If you have questions about tax limit increases for 2022, leave a comment below, or feel free to contact me directly. I’m happy to help!

[View full post](https://www.crradvisors.com/blog/tax-limits-for-businesses-have-increased-for-2022)

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