IRS Raises 2027 Tax Brackets and Standard Deduction
The short answer
The IRS raised the income limits for every federal tax bracket and the standard deduction for 2027. The tax rates themselves did not change, so more of your income now falls into the lower brackets. The standard deduction rises to $16,600 for single filers and $33,200 for married couples filing jointly.
What happened
On November 5, 2026, the IRS released its annual inflation adjustments for tax year 2027 in Revenue Procedure 2026-35. The release covers nearly 70 tax provisions, and the adjustments use an inflation factor of 3.2 percent, larger than in the previous two years as inflation heated up.
The seven federal tax rates stay at 10, 12, 22, 24, 32, 35, and 37 percent. Only the income thresholds move. The top rate of 37 percent now applies to taxable income above $661,375 for single filers and above $793,650 for married couples filing jointly.
The standard deduction rises for every filing status. Single filers and married people filing separately get $16,600, up $500 from $16,100 in 2026. Married couples filing jointly get $33,200, up $1,000 from $32,200. Heads of household get $24,925, up $775 from $24,150. The maximum child tax credit rises to $2,300 per child, up $100 from $2,200.
Here are the 2027 brackets, showing where each rate starts:
| Tax rate | Single | Married filing jointly |
|---|---|---|
| 10% | Up to $12,800 | Up to $25,600 |
| 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 |
Why it matters for beginners
Tax brackets work like steps. Only the income inside each step is taxed at that step’s rate, so a higher threshold means less of your income is taxed at the higher rates. When your pay rises only to keep up with inflation, the higher thresholds stop that raise from pushing more of your income into a higher bracket. That is the whole point of the annual inflation adjustment.
The higher standard deduction helps in a simpler way. It is the amount of income you can earn before any federal income tax applies at all, so a bigger standard deduction means a smaller taxable income for most people who do not itemize.
These changes do not lower the tax rates, and they do not change the tax you owe on income earned in 2026. They apply to income earned from January 1 through December 31, 2027, and to the tax return filed in early 2028. If you have a question about your own return or a notice from the IRS, our guide on how to speak with someone from the IRS explains the phone numbers and the best times to call.
What to watch next
Check your paycheck withholding early in 2027, because employers will use the new tables and your take home pay may change slightly. Remember that state income taxes are separate, and your state may use different brackets and deductions. The IRS will publish the full tables in Revenue Procedure 2026-35, and tax software will build the new figures in before the 2027 filing season.
Frequently asked questions
Do tax rates change in 2027?
No. The seven rates stay at 10, 12, 22, 24, 32, 35, and 37 percent. Only the income limits for each bracket move up.
When do the new brackets apply?
They apply to income earned in 2027, which is reported on the tax return filed in early 2028. They do not change the return due in April 2027.
What is the standard deduction for 2027?
It is $16,600 for single filers, $33,200 for married couples filing jointly, and $24,925 for heads of household.
What happens to the child tax credit?
The maximum child tax credit rises to $2,300 per child for 2027, up from $2,200 in 2026.
Will my tax bill go down?
It may fall slightly if your income stays about the same, because more of it is shielded by the higher standard deduction and the wider brackets. The exact effect depends on your income, filing status, and deductions.
Sources
IRS, Revenue Procedure 2026-35, annual inflation adjustments for tax year 2027, announced November 5, 2026. Journal of Accountancy, “IRS announces inflation adjustments for tax year 2027,” November 5, 2026, https://www.journalofaccountancy.com/news/2026/nov/irs-announces-inflation-adjustments-for-tax-year-2027/. NerdWallet, “IRS Announces 2027 Income Tax Brackets, Updated Standard Deduction,” November 5, 2026, https://www.nerdwallet.com/taxes/news/tax-changes-2027.
This article is for general information and education only. It is not legal or financial advice.
