The IRS has set the numbers that will decide how much federal income tax most Americans owe for 2027. On 5 November 2026 the agency released its annual inflation adjustments, and with inflation running hotter than in recent years, the bump is bigger than usual: about 3.2%. That means wider tax brackets, a larger standard deduction and a slightly bigger child tax credit. Here is every key number, what changed from 2026, and what it means for your pay cheque.
Quick answer: For tax year 2027 (returns filed in early 2028), the seven federal tax rates stay at 10%, 12%, 22%, 24%, 32%, 35% and 37%, but the income thresholds rise about 3.2%. The standard deduction rises to $16,600 for single filers, $33,200 for married couples filing jointly and $24,925 for heads of household. The top 37% rate starts above $661,375 for singles and $793,650 for joint filers. The child tax credit rises to $2,300 per child.
What the IRS announced
The IRS published the figures in news release IR-2026-133 alongside Revenue Procedure 2026-35. They cover more than 60 tax provisions, and they apply to income you earn from 1 January 2027. You will use them when you file your 2027 return in 2028, not the return you file next spring.
The agency adjusts these numbers every year so that inflation alone does not push people into higher brackets, an effect known as “bracket creep”. Forbes reported that the 2027 adjustment of roughly 3.2% compares with about 2.7% the year before. The IRS uses chained CPI, a measure of inflation, averaged over the 12 months ending in August.
2027 tax brackets: single and married filing jointly
The rates themselves do not change. Only the income levels where each rate kicks in move higher. These thresholds apply to taxable income, which is your income after deductions.
| Tax rate | Single (2027 taxable income) | Married filing jointly (2027) |
|---|---|---|
| 10% | $0 to $12,800 | $0 to $25,600 |
| 12% | $12,801 to $52,025 | $25,601 to $104,050 |
| 22% | $52,026 to $109,125 | $104,051 to $218,250 |
| 24% | $109,126 to $208,325 | $218,251 to $416,650 |
| 32% | $208,326 to $264,550 | $416,651 to $529,100 |
| 35% | $264,551 to $661,375 | $529,101 to $793,650 |
| 37% | Over $661,375 | Over $793,650 |
Head of household brackets for 2027
Single parents and others who qualify as head of household get wider lower brackets than single filers:
| Tax rate | Head of household (2027) |
|---|---|
| 10% | $0 to $18,250 |
| 12% | $18,251 to $69,650 |
| 22% | $69,651 to $109,100 |
| 24% | $109,101 to $208,300 |
| 32% | $208,301 to $264,550 |
| 35% | $264,551 to $661,350 |
| 37% | Over $661,350 |
Married couples filing separately use the same thresholds as single filers up to the 32% bracket. Their 35% bracket ends at $396,825, and the 37% rate applies above that, according to NerdWallet.
How 2027 compares with 2026
The changes look small line by line, but they add up. For a married couple, the top of the 12% bracket rises by $3,250, from $100,800 to $104,050. That is $3,250 more income taxed at 12% instead of 22%.
| Item | 2026 | 2027 | Change |
|---|---|---|---|
| Standard deduction, single | $16,100 | $16,600 | +$500 |
| Standard deduction, married filing jointly | $32,200 | $33,200 | +$1,000 |
| Standard deduction, head of household | $24,150 | $24,925 | +$775 |
| Top of 12% bracket, single | $50,400 | $52,025 | +$1,625 |
| Top of 12% bracket, joint | $100,800 | $104,050 | +$3,250 |
| 37% rate starts (single) | $640,600 | $661,375 | +$20,775 |
| Child tax credit (per child) | $2,200 | $2,300 | +$100 |
| Refundable part of child tax credit | $1,700 | $1,800 | +$100 |
| Annual gift tax exclusion | $19,000 | $20,000 | +$1,000 |
| Estate tax exclusion | $15 million | $15.48 million | +$480,000 |
A quick example
Take a single filer earning $70,000 in wages with no other income. In 2027 they subtract the $16,600 standard deduction, leaving $53,400 of taxable income. The first $12,800 is taxed at 10%, the next $39,225 at 12%, and only the last $1,375 at 22%. That works out to about $6,290 in federal income tax before credits. Under the 2026 numbers, the same $70,000 would have produced about $6,570. The saving is modest, roughly $280, but it is real, and it grows with income and family size.
Remember that a tax bracket is marginal. Moving into a higher bracket only raises the rate on the dollars above the threshold, never on your whole income.
Other 2027 numbers worth knowing
- Earned income tax credit: up to $8,496 for workers with three or more qualifying children.
- Alternative minimum tax exemption: $93,000 for unmarried filers (phasing out from $515,950) and $144,700 for married couples filing jointly (phasing out from $1,031,900).
- Health flexible spending account (FSA): $3,500 in salary contributions, with up to $700 carried over if your plan allows it.
- Health savings account (HSA): $4,500 for self-only coverage and $9,000 for family coverage, NerdWallet reported.
- Commuter benefits: $350 a month for transit and for qualified parking.
- Adoption credit: up to $18,250 in qualified expenses, with up to $5,280 refundable.
- Foreign earned income exclusion: $137,300.
- Personal exemptions: still $0.
What does not rise with inflation
Several popular deductions created by the 2025 tax law, which the IRS now calls the Working Families Tax Cuts, are fixed dollar amounts. According to Forbes, the extra deduction for people aged 65 and older stays at $6,000, the deduction for tips stays capped at $25,000, and the overtime deduction stays capped at $12,500 for single filers ($25,000 for joint filers). Because they are not indexed, inflation slowly reduces their real value.
Why “tax brackets 2027” is trending
The IRS release landed on Thursday, and US searches for the new brackets jumped as people tried to work out what it means for their pay. Interest is also high because of the political backdrop. Democrats won control of Congress in this week’s midterms, and future tax law may look different. For now, these figures are set by existing law and will apply unless Congress changes them. If you want the bigger picture on how the election could shape policy, see our report on the 2026 midterm election results.
The new numbers also come as markets are swinging hard, which is another reason many households are reviewing their finances. We covered that in how AI stocks lost $5 trillion in October.
What you can do now
- Check your withholding in January. Employers update payroll tables for the new year, so your take-home pay may rise slightly. Use the IRS Tax Withholding Estimator if your situation has changed.
- Plan retirement and HSA contributions. Contributing to pre-tax accounts lowers taxable income and can keep more of your income in a lower bracket.
- Time big gifts. The $20,000 annual gift exclusion lets you give more to each person in 2027 without filing a gift tax return.
- Do not confuse tax years. The return you file in early 2027 uses the 2026 brackets, not these new ones.
Disclaimer: This article is general information, not tax, legal or financial advice. Tax rules depend on your circumstances and can change. Check IRS.gov or speak to a qualified tax professional before making decisions.
Frequently asked questions
What are the 2027 federal tax brackets?
The rates are 10%, 12%, 22%, 24%, 32%, 35% and 37%. For single filers, the 10% rate covers taxable income up to $12,800 and the 37% rate starts above $661,375. For married couples filing jointly, the 10% rate covers up to $25,600 and the 37% rate starts above $793,650.
What is the standard deduction for 2027?
$16,600 for single filers and married people filing separately, $33,200 for married couples filing jointly, and $24,925 for heads of household.
When do the 2027 tax brackets apply?
They apply to income earned in calendar year 2027 and are used on tax returns filed in 2028. Your 2026 return, filed in 2027, uses the 2026 brackets.
How much is the child tax credit in 2027?
Up to $2,300 per qualifying child, up from $2,200 in 2026. Up to $1,800 of it is refundable.
Why did the tax brackets go up?
The IRS adjusts brackets and many other figures for inflation every year. For 2027 the adjustment is about 3.2%, higher than in recent years, so thresholds rose more than usual.
Sources: IRS (IR-2026-133 and Rev. Proc. 2026-35), NerdWallet, Forbes, Kiplinger, Google Trends.
