The Internal Revenue Service has released the federal income tax brackets for 2027, and for most Americans the news is modestly good: thresholds are rising by about 3.2%, the standard deduction is going up, and the seven tax rates themselves are not changing. The announcement, made on Thursday, November 5, 2026, sets the numbers that will apply to income earned in 2027 — the returns most people will file in early 2028.
BLUF: The IRS announced on Thursday, November 5, 2026, that federal income tax brackets for tax year 2027 will rise by about 3.2% to account for inflation. The standard deduction increases to $16,600 for single filers and $33,200 for married couples filing jointly, while the top 37% rate will apply to single incomes above $661,375 and joint incomes above $793,650. Tax rates themselves are unchanged, and the new figures apply to income earned in 2027.
At a Glance
- Who: The Internal Revenue Service (IRS)
- What: Inflation adjustments to federal income tax brackets and other provisions for tax year 2027
- When: Announced Thursday, November 5, 2026; applies to income earned in 2027, filed in early 2028
- Standard deduction: $16,600 single, $24,925 head of household, $33,200 married filing jointly
- Top rate: 37% on single income above $661,375 and joint income above $793,650
- Adjustment: Thresholds rise by about 3.2% on average, indexed to inflation
- Child tax credit: Maximum of $2,300, up $100 from 2026
What Has Changed for 2027
The headline change is the annual inflation adjustment. Each year, the IRS moves the income thresholds attached to each tax bracket so that inflation alone does not push people into higher rates — a phenomenon known as bracket creep. For 2027, the thresholds climb by approximately 3.2%, a steeper rise than the 2% adjustment for this year’s taxes, reflecting inflation’s renewed presence in the economy.
The standard deduction — the amount of income shielded from tax before any brackets apply — rises to $16,600 for single taxpayers and married people filing separately, up from $16,100. For married couples filing jointly it increases to $33,200, up $1,000 from this year, and for heads of household it will be $24,925.
The seven federal income tax rates remain unchanged, ranging from 10% to 37%. What changes is the income attached to each rate. The 10% rate applies to single incomes of $12,800 or less ($25,600 for joint filers); the 12% rate kicks in above those amounts; the 22% rate above $52,025 for singles ($104,050 joint); the 24% rate above $109,125 ($218,250 joint); the 32% rate above $208,325 ($416,650 joint); and the 35% rate above $264,550 ($529,100 joint). The top 37% rate applies to single taxable income above $661,375 and joint income above $793,650 — nearly $25,000 higher than the threshold for a married couple this year.
The Other Numbers That Moved
The annual adjustment covers roughly 70 provisions of the tax code, not just the brackets. The maximum child tax credit rises to $2,300 for 2027, up $100 from $2,200 in 2026. The Alternative Minimum Tax exemption increases to $93,000 for unmarried individuals, beginning to phase out at $515,950, and to $144,700 for married couples filing jointly, phasing out from $1.03 million.
The state and local tax (SALT) deduction also moves. For 2027, the maximum SALT deduction rises to $40,804, up from $40,400 for 2026, and the income limit for claiming the full deduction rises to $510,050. The federal estate-tax exclusion — the amount an individual can shelter from estate taxes — climbs to $15.48 million for 2027, up from $15 million for deaths in 2026.
One set of numbers is still to come: the IRS said it will announce the inflation adjustments for retirement-account limits later this autumn. Those figures, including 401(k) contribution limits, arrive separately from the bracket announcement.
Why the Adjustment Is Bigger This Year
The 3.2% rise is notably larger than the 2% adjustment applied for 2026, and the reason is inflation. The adjustments are calculated using the chained consumer price index, which has been used for the calculation since 2018. The inflation rate climbed to 3.7% as of September, with gas prices continuing to drive up household costs — a pressure that also weighed on voters in the midterm elections held just days before the IRS announcement, in which high gas prices and rising retail prices helped oust Republican incumbents across the country.
Still, the increase is far smaller than the roughly 7% jump that followed 2022’s white-hot inflation. And because average hourly earnings were up 3% in September from a year earlier, according to the Labor Department, the 3.2% adjustment roughly keeps pace with how incomes themselves have moved — which is precisely what the annual exercise is designed to do.
It is also worth noting the context in which these figures arrive. 2027 marks the second full year under the 2025 tax law — the One, Big, Beautiful Bill Act, signed on July 4, 2025 — which made the seven-rate structure permanent. The rates themselves are no longer on the table in the annual inflation release; only the thresholds move.
What It Means for Your Tax Bill
For most taxpayers, the practical effect is straightforward: more of your income will be taxed at lower rates. A married couple filing jointly, for example, could have $104,050 in taxable income in 2027 — $3,250 more than this year — and stay in the 12% bracket. Your effective tax rate will be lower than your top rate in any case, because the first slice of income is taxed at 10%, the next at 12%, and so on; the higher brackets apply only to the income that exceeds each threshold.
None of this affects the return you file in early 2027, which covers income earned during 2026 under the official 2026 figures. The 2027 numbers matter for the income you earn from January 1, 2027, and the return you file in early 2028.
People Also Ask
What are the IRS tax brackets for 2027?
For 2027, the seven federal income tax rates remain 10%, 12%, 22%, 24%, 32%, 35% and 37%. The thresholds rise by about 3.2%: the 37% top rate applies to single incomes above $661,375 and joint incomes above $793,650, while the 10% rate covers single incomes up to $12,800 and joint incomes up to $25,600.
What is the standard deduction for 2027?
The standard deduction for 2027 is $16,600 for single filers and married people filing separately, $24,925 for heads of household, and $33,200 for married couples filing jointly. That is up $500 for single filers and $1,000 for joint filers from 2026.
When do the 2027 tax brackets take effect?
The 2027 brackets apply to income earned during calendar year 2027, which most Americans will report on the tax returns they file in early 2028. They do not affect the return filed in early 2027, which covers 2026 income.
Did the tax rates change for 2027?
No. The seven tax rates — 10% to 37% — are unchanged for 2027. Only the income thresholds attached to each bracket moved, rising by about 3.2% to account for inflation, along with the standard deduction and around 70 other tax provisions.