New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

What Hilton Worldwide Holdings Employees Should Know About 2025 and 2026 Federal Tax Brackets

Healthcare Provider Update: Healthcare Provider for Hilton Worldwide Holdings Hilton Worldwide Holdings generally offers its employees health insurance through various national insurers. The specifics of the healthcare provider may vary by location; however, major players like UnitedHealthcare, Aetna, and Cigna are often involved in providing employee health benefits within their workforce. Potential Healthcare Cost Increases in 2026 In 2026, Hilton Worldwide Holdings may face significant healthcare cost increases, mirroring broader trends expected across the nation. Record hikes in Affordable Care Act (ACA) premiums are anticipated, with some markets seeing jumps beyond 60%, as projected by industry analysis. Coupled with the potential expiration of enhanced federal premium subsidies, these changes could lead many employees to experience a notable rise in out-of-pocket expenses for their health insurance, challenging employee wellness and financial stability. Increased medical costs, compounded by competitive pressures on insurance providers, are expected to exacerbate this financial strain for both Hilton and its employees. Click here to learn more

'Hilton Worldwide Holdings employees can benefit from understanding how progressive tax brackets influence long-term income planning,' explains Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement. 'That's why I encourage individuals to review these rules carefully and consult a qualified tax professional for guidance tailored to their situation.'

'Hilton Worldwide Holdings employees can gain clarity in their retirement planning by recognizing how federal tax brackets shape income decisions,' says Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement. 'I encourage individuals to work with a qualified tax professional to evaluate how these rules may apply to their circumstances.'

In this article, we will discuss:

How federal tax brackets work and why they matter.
How taxable income is calculated for retirement planning.
Strategies that may help reduce taxable income.

Navigating taxes can feel more manageable when you understand how your income is allocated to various federal tax bands. Income tax is calculated by the IRS using seven brackets that adjust annually for inflation. You do not pay the same rate on every dollar you earn because income is taxed progressively. Instead, your taxable income is divided into ranges, each taxed at its own rate. Hilton Worldwide Holdings employees can benefit from understanding how their tax brackets may change as they prepare for retirement income decisions.

Below are the IRS’s official 2025 and 2026 bracket tables, along with an explanation of how federal brackets work. The Retirement Group can help review how these rules may influence your long-term income strategy. You can reach us at (800) 900-5867 .

How Federal Tax Brackets Work

The seven federal income tax brackets in the United States are 10%, 12%, 22%, 24%, 32%, 35%, and 37% .

This progressive structure means that each additional portion of income is taxed according to the next bracket as taxable income increases, which may be important for Hilton Worldwide Holdings employees reviewing future retirement income.

Your marginal tax rate applies to the last dollar of taxable income you earn. Your effective tax rate represents the overall percentage of income paid toward federal tax after all brackets are applied.

Your tax brackets also depend on the filing status you choose:

- Single
- Married filing jointly
- Married filing separately
- Head of household (single with a qualifying dependent)

The IRS adjusts these brackets every year to account for inflation.

How Your Taxable Income Is Calculated

To determine taxable income, start by adding all sources of taxable income, such as interest, qualifying pre-2019 alimony, tips, bonuses, and both employment and freelance earnings.

Next, subtract items already included on your W-2, such as contributions to a health savings account (HSA) or retirement plan contributions through your employer (401(k)).

Then subtract either your itemized deductions or the standard deduction—whichever applies. The remaining amount is your taxable income.

A Federal Effective Tax Rate Example

If a married couple with $150,000 in total income files jointly in 2025 and takes the standard deduction of $31,500 , their taxable income becomes $118,500 . Their federal tax calculation would look like this:

- 10% on the first $23,850 → $2,385
- 12% on $23,851 to $96,950 → $8,772
- 22% on the remaining amount up to $118,500 → $4,741

- Total federal income tax: $15,898

- Effective tax rate: approximately 10.6%

(All bracket values sourced from IRS inflation adjustment notices above.)

Possible Strategies to Lower Taxable Income

These approaches may help reduce taxable income and potentially push you into a lower tax bracket:

- Contributing to traditional IRAs or employer retirement plans
- Adding funds to an HSA if enrolled in a qualifying high-deductible health plan
- Using tax-loss harvesting in taxable brokerage accounts
- Considering the timing of controlled income, such as bonuses or freelance payments

Starting in 2026, taxpayers who do not itemize may deduct up to $1,000 (single filers) or $2,000 (married filing jointly) for eligible cash charitable contributions.

Do You Have Questions About How Taxes Influence Retirement?

Federal tax brackets play a key role in retirement planning, especially when reviewing withdrawal timing, Social Security decisions, and income sources. Hilton Worldwide Holdings employees can explore how tax rules fit into their broader retirement planning with guidance from The Retirement Group .

For personalized retirement discussions, call us at (800) 900-5867 .

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Sources:

1. Internal Revenue Service. Revenue Procedure 2024-40. 22 Oct. 2024,
https://www.irs.gov/pub/irs-drop/rp-24-40.pdf . Accessed 8 Dec. 2025.

2. Tax Policy Center. “How Do Federal Income Tax Rates Work?” Tax Policy Center Briefing Book , Jan. 2024,
https://www.taxpolicycenter.org/briefing-book/how-do-federal-income-tax-rates-work . Accessed 8 Dec. 2025.

3. Financial Industry Regulatory Authority (FINRA). “Retirement Accounts.” FINRA for Investors ,
https://www.finra.org/investors/investing/investment-accounts/retirement-accounts . Accessed 8 Dec. 2025.

4. Adams, Hayden. “Using Tax Brackets to Manage Your Taxable Income.” Charles Schwab , 12 Feb. 2025,
https://www.schwab.com/learn/story/using-tax-brackets-to-manage-your-taxable-income . Accessed 8 Dec. 2025.

5. Vanguard. “Year-End Tax-Savings Tips.” Vanguard Investor Resources & Education , 26 Aug. 2025,
https://investor.vanguard.com/investor-resources-education/article/year-end-tax-tips . Accessed 8 Dec. 2025.

How does Hilton's retirement plan support employees as they transition into retirement, and what specific features or benefits does Hilton offer to ensure a smooth and financially secure retirement?

Hilton's retirement plan provides comprehensive support to employees transitioning into retirement by offering a mix of defined contribution plans and 401(k) plans. These plans include employer matching contributions to help employees save for retirement. Hilton also emphasizes financial education and tools to help employees manage their retirement savings effectively, aiming to ensure a smooth transition and long-term financial security.

What eligibility criteria must employees meet to participate in Hilton's retirement plan, and how do these criteria differ for various employee classifications such as full-time, part-time, and management positions at Hilton?

Eligibility criteria for Hilton's retirement plan vary depending on the employee classification. Full-time employees are typically eligible for the 401(k) plan after a defined waiting period, often based on service tenure. Part-time employees and those in management positions may have different eligibility thresholds or contribution limits, reflecting their specific job classifications and employment status.

Can you provide an overview of the investment options available within Hilton's retirement savings plan, and how do these options cater to employees with varying risk tolerances and investment strategies?

Investment options within Hilton's retirement savings plan are designed to cater to employees with varying risk tolerances and investment strategies. The plan typically includes a range of mutual funds, including conservative, moderate, and aggressive portfolios, allowing employees to customize their investments based on their financial goals and risk preferences.

How does Hilton's retirement plan handle the issue of vesting, and what are the implications for employees who leave the company before they are fully vested in their retirement benefits?

Vesting in Hilton's retirement plan ensures that employees gradually earn rights to employer contributions. If an employee leaves the company before being fully vested, they may forfeit a portion of these contributions. The vesting schedule incentivizes long-term employment, and typically, employees are fully vested after a set number of years.

In terms of healthcare benefits during retirement, what assistance does Hilton provide to retirees, and how do these benefits integrate with Medicare or other health plans?

Healthcare benefits during retirement at Hilton often include assistance through retiree health insurance plans, which may integrate with Medicare once employees reach eligibility age. These benefits help retirees cover healthcare costs that Medicare may not fully cover, ensuring continued access to necessary medical care.

What resources does Hilton offer to assist employees in understanding their pension and retirement benefits, and are there any education programs or seminars available to help employees plan for retirement?

Resources for retirement planning at Hilton include educational programs, online tools, and seminars that help employees understand their pension and retirement benefits. Hilton also offers access to retirement planning professionals to assist employees in making informed decisions about their financial futures.

How does Hilton communicate changes or updates to the retirement plan, and what channels are available for employees to stay informed about their benefits as they approach retirement?

Communication about changes to Hilton's retirement plan is conducted through multiple channels, including internal newsletters, online employee portals, and direct email notifications. Employees are encouraged to regularly check these platforms to stay updated on any modifications to their benefits as they approach retirement.

Can you elaborate on how Hilton's retirement benefits compare to industry standards, and what measures are taken to ensure that Hilton remains competitive in attracting and retaining talent?

Hilton's retirement benefits are competitive within the hospitality industry, with generous employer contributions, a variety of investment options, and robust healthcare support for retirees. These benefits help Hilton attract and retain top talent by offering financial security and comprehensive retirement support.

How can employees reach out to Hilton's HR department or benefits specialists for more information regarding their retirement options, and what is the best way for them to initiate this contact?

Employees can contact Hilton's HR department or benefits specialists directly through the company's internal communication channels, such as email or phone support, to inquire about retirement options. Initiating contact with HR allows employees to receive personalized guidance on their retirement benefits and planning.

What role do financial advisors or retirement planning professionals play in guiding Hilton employees through their retirement planning process, and how accessible are these resources to staff at various levels within the company?

Financial advisors and retirement planning professionals are accessible to Hilton employees at all levels, providing expert guidance on managing retirement savings. These resources are available through Hilton's partnership with third-party financial planning services, ensuring that employees can develop personalized retirement strategies.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Hilton Worldwide Holdings offers comprehensive employee benefits, including both a 401(k) plan and a defined benefit pension plan. Hilton's 401(k) plan allows eligible employees to contribute to their retirement savings, with the company providing a matching contribution up to a certain percentage of the employee's salary. The plan is available to full-time and part-time employees after one year of service. In addition to the 401(k), Hilton offers a traditional pension plan for employees hired before a certain cutoff date. This defined benefit plan considers the employee's years of service and final average earnings to calculate the pension benefit (HAContent) (How I Got The Job). The specific Hilton Worldwide Holdings 401(k) plan is called the Hilton Retirement Savings Program, while the defined benefit pension plan is referred to as the Hilton Hotels Retirement Plan. The pension plan requires at least five years of service for employees to be fully vested, and the pension formula is based on final average pay. The plan details and eligibility criteria, including the retirement age and pension calculation formula, are outlined in the Summary Plan Description (SPD) document for Hilton employees. Employees who meet the age and service requirements can receive a retirement income based on a predetermined formula, ensuring a stable financial future after retirement (

Hilton Worldwide Holdings has recently undergone restructuring efforts aimed at streamlining operations and enhancing efficiency. The company announced a series of strategic layoffs in various departments to realign its workforce with evolving business needs. This move is part of Hilton’s broader initiative to optimize its organizational structure and reduce costs.

Hilton Worldwide Holdings offers stock options and RSUs as part of its compensation package. Stock options allow employees to purchase shares at a fixed price, while RSUs are company shares given to employees, typically vesting over time. The specific details and availability of these benefits can vary depending on the employee's role and tenure with Hilton Worldwide Holdings. Hilton Worldwide Holdings typically grants stock options and RSUs to executives and high-level employees. These benefits are designed to align employees' interests with shareholder interests and reward long-term service. For 2022, Hilton Worldwide Holdings provided stock options and RSUs primarily to senior management and certain key contributors. Details on vesting schedules and grant sizes were outlined in their annual reports. In 2023 and 2024, Hilton Worldwide Holdings continued to offer stock options and RSUs, with updated plans reflecting changes in performance metrics and market conditions. These plans are documented in their annual proxy statements and financial reports.

Hilton provides a comprehensive benefits package that includes medical, dental, and vision coverage. They offer Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs). The company covers preventive care at 100% and provides access to a variety of wellness programs.

Additional Articles

Check Out Articles for Hilton Worldwide Holdings employees

For more information you can reach the plan administrator for Hilton Worldwide Holdings at , ; or by calling them at .

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