The IRS has published its inflation adjustments for tax year 2027. Every bracket moves up, the standard deduction rises for every filing status, and the child tax credit gains $100. Here are the numbers that matter.
2027 Tax Brackets: Key Facts
- Announced: Thursday, November 5, 2026, in IRS release IR-2026-133 and Revenue Procedure 2026-35.
- Scope: nearly 70 tax provisions adjusted for inflation by about 3.2%, according to reports.
- Standard deduction: $16,600 for single filers, $33,200 for married couples filing jointly, $24,925 for heads of household.
- Top rate: stays at 37%, now starting above $661,375 for single filers and $793,650 for joint filers.
- Child tax credit: up $100 to $2,300 per child, with $1,800 refundable.
- When it applies: to income earned in 2027, on returns filed in 2028.
2027 Tax Brackets: What the IRS Announced
The Announcement
The IRS released the 2027 tax brackets and other adjustments on November 5. The agency’s official announcement points to Revenue Procedure 2026-35 for the full tables. IRS Chief Executive Frank Bisignano said taxpayers will keep benefiting from the Working Families Tax Cuts, the name Republicans and the IRS now use for the 2025 tax law, and will see its credits and deductions grow.
Which Tax Year These Numbers Cover
These are tax year 2027 figures. They apply to income earned next year and generally to returns filed in 2028. The return you file in spring 2027 still uses the 2026 numbers.
2027 Federal Income Tax Brackets
The IRS adjusts every bracket each year to keep inflation from pushing people into higher rates. Here are the 2027 rates for the two most common filing statuses. Rates apply only to the slice of income inside each range.
Single Filers
- 10%: income up to $12,800
- 12%: over $12,800
- 22%: over $52,025
- 24%: over $109,125
- 32%: over $208,325
- 35%: over $264,550
- 37%: over $661,375
Married Couples Filing Jointly
- 10%: income up to $25,600
- 12%: over $25,600
- 22%: over $104,050
- 24%: over $218,250
- 32%: over $416,650
- 35%: over $529,100
- 37%: over $793,650
Head-of-household and married-filing-separately thresholds are in the IRS revenue procedure.
2027 Standard Deduction by Filing Status
- Married filing jointly: $33,200, up $1,000 from $32,200.
- Single and married filing separately: $16,600, up $500 from $16,100.
- Head of household: $24,925, up $775 from $24,150.
Most taxpayers use the standard deduction. Estimates put it at about 86% of filers in 2026. Itemizing can still pay off for people with large state and local tax or mortgage interest deductions.
Child Tax Credit, EITC and Other Credits
Child Tax Credit
The maximum child tax credit rises to $2,300 per child, up $100. The refundable portion also rises $100, to $1,800.
Earned Income Tax Credit
The maximum earned income tax credit for a worker with three or more qualifying children is $8,496, up from $8,231. The revenue procedure has the amounts and phase-outs for smaller families.
Adoption and Childcare Credits
The adoption credit covers qualified expenses up to $18,250, up from $17,670, and up to $5,280 of it can be refundable. The employer-provided childcare credit rises to a maximum of $515,943.67, or $619,132.40 for eligible small businesses.
Other Key 2027 Tax Limits
Estate and Gift Tax
The basic estate tax exclusion rises to $15,480,000 for people who die in 2027, up from $15,000,000. The annual gift exclusion goes from $19,000 to $20,000 per recipient. For gifts to a spouse who is not a US citizen, it rises to $201,000.
Alternative Minimum Tax
The AMT exemption for unmarried filers is $93,000 and starts to phase out at $515,950. For joint filers the exemption is $144,700 and the phase-out starts at $1,031,900.
Business Expensing
Businesses can expense up to $2,640,000 of Section 179 property, up from $2,560,000. The limit for sport utility vehicles is $33,100.
Health and Commuter Benefits
The health flexible spending account limit rises $100 to $3,500, and the carryover limit to $700. The monthly limit for transit and parking benefits goes up $10 to $350. For medical savings accounts with self-only coverage, the minimum deductible is $3,000 and the maximum is $4,550.
Foreign Earned Income
The foreign earned income exclusion rises to $137,300 from $132,900.
What Did Not Change
Personal exemptions stay at zero. The overall limit on itemized deductions remains eliminated, though a separate limit applies to the tax benefit for people in the 37% bracket. The Lifetime Learning Credit phase-out stays at $80,000 to $90,000, or $160,000 to $180,000 for joint filers.
Several newer deductions are set at fixed amounts and were not indexed, according to reports. The senior deduction stays at $6,000, the tips deduction cap at $25,000, and the overtime deduction cap at $12,500, or $25,000 for joint filers.
What Bigger Brackets Mean for Your Paycheck
Wider brackets stop bracket creep, the quiet tax increase that happens when raises only keep up with prices and push income into a higher rate. If your pay stays flat, a larger standard deduction and wider brackets can lower your federal bill slightly. If your pay rises faster than inflation, you can still end up in a higher bracket. The adjustments follow the same inflation pressure we describe in our report on the global bond sell-off.
What to Watch Next
The revenue procedure applies the tax law as it stands on the release date, and Congress can change it. With Democrats winning Congress in the midterms, watch for any tax proposals in the new session. Also watch for filing season guidance for the 2026 return due in spring.
Analysis
These changes are routine, and for most households they are small. A single filer gains $500 of extra shield and a joint couple $1,000. The bigger question is what Congress does next, since new lawmakers could revisit the 2025 tax law. Until that happens, the safest assumption is that the 2027 numbers above are the ones you will file with in 2028.
This article is for information only and is not tax advice. Check your own situation with a qualified tax professional.
Frequently Asked Questions
What is the standard deduction for 2027?
It is $16,600 for single filers and married individuals filing separately, $33,200 for married couples filing jointly, and $24,925 for heads of household.
What is the top federal tax rate in 2027?
It stays at 37%. It applies to income over $661,375 for single filers and over $793,650 for married couples filing jointly.
When do the 2027 tax brackets apply?
They apply to income earned in 2027 and generally to tax returns filed in 2028.
How much is the child tax credit in 2027?
The maximum is $2,300 per child, and up to $1,800 of it can be refundable.
Did the senior deduction change for 2027?
No. Reports say the $6,000 senior deduction is a fixed amount and was not adjusted for inflation.
