IRS Releases 2027 Tax Brackets: New Standard Deduction and Key Changes
The IRS has released the 2027 tax brackets. In a news release on November 5, 2026, the agency announced its yearly inflation adjustments for tax year 2027. These numbers apply to income you earn in 2027, which most people will report when they file in early 2028.
Why the 2027 tax brackets changed
Every year, the IRS adjusts dozens of tax figures for inflation. The goal is to keep rising prices from pushing people into higher brackets when their real income has not grown. As a result, the income ranges for each rate move up a little, even though the rates themselves stay the same.
For 2027, the seven federal income tax rates remain 10%, 12%, 22%, 24%, 32%, 35% and 37%.
The 2027 tax brackets at a glance
Here are the 2027 thresholds for single filers and married couples filing jointly, per the IRS:
| Rate | Single filers | Married filing jointly |
|---|---|---|
| 10% | $12,800 or less | $25,600 or less |
| 12% | Over $12,800 | Over $25,600 |
| 22% | Over $52,025 | Over $104,050 |
| 24% | Over $109,125 | Over $218,250 |
| 32% | Over $208,325 | Over $416,650 |
| 35% | Over $264,550 | Over $529,100 |
| 37% | Over $661,375 | Over $793,650 |
Remember, these are marginal rates. In other words, only the income inside each range is taxed at that rate. Moving into a higher bracket does not raise the tax on all of your income.
A bigger standard deduction for 2027
The standard deduction also rises. For 2027, it will be:
- $33,200 for married couples filing jointly, up $1,000 from 2026
- $16,600 for single filers and married people filing separately
- $24,925 for heads of household
Most taxpayers take the standard deduction instead of itemizing. So for many households, this is the change that matters most.
Other key numbers for 2027
The IRS update covers far more than brackets. Here are some of the changes families and business owners may notice:
- Child Tax Credit: up to $2,300 per child, up $100, with up to $1,800 refundable.
- Earned Income Tax Credit: up to $8,496 for workers with three or more qualifying children, up from $8,231.
- Annual gift exclusion: $20,000 per recipient, up from $19,000.
- Estate tax exclusion: $15.48 million, up from $15 million.
- Health FSA: $3,500 in salary contributions, up $100.
- Adoption credit: up to $18,250 in qualified expenses.
- Section 179 expensing: up to $2.64 million for businesses, up from $2.56 million.
The full list is in IRS Revenue Procedure 2026-35.
What the 2027 tax brackets mean for you
For most people, the changes are modest. However, they can still add up. A higher standard deduction shields more income from tax. Likewise, wider brackets mean a raise that simply keeps pace with inflation is less likely to be taxed at a higher rate.
There are also a few planning moves to consider:
- Check your withholding in January. Employers update payroll tables, but a quick review can prevent surprises.
- Plan bigger gifts. The $20,000 annual exclusion lets you give more to each person without filing a gift tax return.
- Use your FSA. If your employer offers one, the higher limit lets you set aside a bit more pre-tax money for medical costs.
- Business owners, map out purchases. The higher Section 179 limit can affect when you buy equipment.
If you are starting a business, our guides on how to get an EIN and how to build business credit are good next steps.
The bottom line
The 2027 tax brackets keep the same seven rates but raise every income threshold for inflation. Meanwhile, the standard deduction, child tax credit and gift limit all move up too. These changes apply to 2027 income, so there is time to plan before you file in 2028.
This article is for general education only and is not tax advice. Figures come from IRS News Release IR-2026-133.
