IRS updates tax brackets, standard deduction for 2027 tax year

Tax season hasn’t begun yet, but it is never too early to start planning. The IRS has published its 2027 tax brackets and standard deductions.

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Nerdwallet said the inflation adjustments for tax year 2027, which will be filed in 2028, are 3.2%, larger than the past two years. The publication suggests that the adjustments will mean that some people will see lower tax bills in 2028.

“American individuals and businesses will see increased tax benefits next tax year ranging from an increase in the standard deduction and the Child Tax Credit for families, and a boost to the amount that can be expensed by businesses,” IRS CEO Frank Bisignano said, according to Fox Business.

The standard deduction for a married couple filing jointly increases to $33,200, or up $1,000 for this tax year, Barron’s reported.

For single taxpayers or those who are married but are filing separately, the standard deduction will be $16,600. Head of household filers will have a standard deduction of $24,925.

The federal income tax rates remain the same, but the brackets will be adjusted for inflation.

• 37% for individual single taxpayers with incomes over $661,375 or $793,650 for married couples filing jointly
• 35% for incomes over $264,550 or $529,100 for married couples filing jointly
• 32% for incomes over $208,325, or $416,650 for married couples filing jointly
• 24% for incomes over $109,125 for singles, or $218,250 for married couples filing jointly
• 22% for incomes over $52,025 for singles, or $104,050 for married couples filing jointly
• 12% for incomes over $12,800 for singles, or $25,600 for married couples filing jointly
• 10% for incomes of single people with incomes of $12,800 or less, or $25,600 for married couples filing for married couples filing jointly

The tax bracket depends on how you file, which you determine on your tax return, CNBC explained.

The 2027 maximum child tax credit is $2,300, or $100 more than in 2026.

CNBC reported there are also adjustments concerning capital gains, estates, gifts, and earned income tax credits.

Click here to see all of the changes the IRS has issued for the 2027 tax year.