2027 Tax Brackets Released: New Income Thresholds and Standard Deductions

2027 tax brackets overview

The Internal Revenue Service released the federal income tax brackets for the 2027 tax year on Thursday. All seven income tiers were shifted upward, reflecting inflation adjustments based on the consumer‑price index.

2027 federal tax brackets by filing status

Both single filers and married couples filing jointly see higher income thresholds before each marginal rate applies.

Single filers

• 10% on income up to $12,800
• 12% on income over $12,800
• 22% on income over $52,025
• 24% on income over $109,125
• 32% on income over $208,325
• 35% on income over $264,550
• 37% on income above $661,375

Married filing jointly

• 10% on income up to $25,600
• 12% on income over $25,600
• 22% on income over $104,050
• 24% on income over $218,250
• 32% on income over $416,650
• 35% on income over $529,100
• 37% on income above $793,650

These figures represent the 2027 income tax bracket thresholds that many taxpayers will reference when preparing returns for the 2028 filing season.

2027 IRS standard deduction amounts

The standard deduction also increased. Single taxpayers can now deduct $16,600, while married couples filing jointly receive a $33,200 deduction. These amounts are higher than the 2026 tax brackets adjustments announced the previous year.

Impact on taxpayers

Higher thresholds mean that many earners will see a modest reduction in taxable income, effectively shielding an additional $500 on average, according to analysis cited by other outlets. The changes come amid broader cost‑of‑living pressures, with the consumer price index rising 3.7% in September 2026.

Related tax provisions

Beyond ordinary income, the IRS updated long‑term capital gains brackets and raised the estate and gift tax exemption. Eligibility for the earned income tax credit was also expanded, though precise income limits were not disclosed.

For readers interested in how these changes intersect with broader market trends, see our Analyst Insights on Whether a Stock Market Crash Is Approaching article.

Sources: CNBC, The Washington Post, USA Today.