IRS sets 2027 tax brackets and raises the standard deduction to $33,200 for married couples
Bracket thresholds rise about 3.2% and the top child tax credit reaches $2,300 for tax year 2027. The amounts generally apply to returns filed in 2028.
By Money Desk · · 2 min read
What it means for you
- For tax year 2027, the standard deduction is $33,200 for joint filers, $16,600 for single filers and $24,925 for heads of household.
- Bracket thresholds rise about 3.2%: the 22% rate starts above $52,025 for single filers and $104,050 for joint filers. The rates do not change.
- The maximum child tax credit rises $100 to $2,300, with up to $1,800 refundable.
- The new amounts generally apply to returns filed in 2028. Returns filed in 2027 generally use the 2026 amounts.
- On unchanged pay with the standard deduction, our arithmetic shows $68 less tax for a single filer on $60,000 and $136 less for a couple on $120,000.
The IRS announced its inflation adjustments for tax year 2027 on November 5, raising the standard deduction to $33,200 for married couples filing jointly and $16,600 for single filers, up from $32,200 and $16,100 for 2026. The income level at which each tax bracket starts rises by about 3.2%. The new amounts generally apply to returns filed in 2028; returns filed in 2027 generally use the 2026 amounts.
| Rate | Single, 2026 | Single, 2027 | Joint, 2026 | Joint, 2027 |
|---|---|---|---|---|
| 10% | Up to $12,400 | Up to $12,800 | Up to $24,800 | Up to $25,600 |
| 12% | Over $12,400 | Over $12,800 | Over $24,800 | Over $25,600 |
| 22% | Over $50,400 | Over $52,025 | Over $100,800 | Over $104,050 |
| 24% | Over $105,700 | Over $109,125 | Over $211,400 | Over $218,250 |
| 32% | Over $201,775 | Over $208,325 | Over $403,550 | Over $416,650 |
| 35% | Over $256,225 | Over $264,550 | Over $512,450 | Over $529,100 |
| 37% | Over $640,600 | Over $661,375 | Over $768,700 | Over $793,650 |
The rates themselves do not change. Revenue Procedure 2026-35 has the full tables, including those for heads of household and for married people filing separately.
What it is worth on unchanged pay
A larger deduction and wider brackets lower the tax on the same income. These examples are our own arithmetic from the IRS amounts, for someone who takes the standard deduction and has no credits or other adjustments.
| Filer and income | 2026 | 2027 | Change |
|---|---|---|---|
| Single, $60,000 | $5,020 | $4,952 | $68 less |
| Married filing jointly, $120,000 | $10,040 | $9,904 | $136 less |
A raise changes the result. If the single filer's pay rose 3.2%, to $61,920, the 2027 tax would be about $5,182, or about 8.4% of income, the same share as in 2026. The IRS is the place to check the amounts for a particular return.
Credits, deductions and benefit limits
| Item | 2026 | 2027 |
|---|---|---|
| Standard deduction, head of household | $24,150 | $24,925 |
| Extra deduction for age or blindness | $1,650 | $1,700 |
| Same, if unmarried | $2,050 | $2,100 |
| Maximum child tax credit | $2,200 | $2,300 |
| Refundable part of that credit | $1,700 | $1,800 |
| Maximum Earned Income Tax Credit, three or more children | $8,231 | $8,496 |
| Maximum Earned Income Tax Credit, no children | $664 | $685 |
| Health flexible spending account limit | $3,400 | $3,500 |
| Monthly transit or parking benefit | $340 | $350 |
| Annual gift exclusion, per person | $19,000 | $20,000 |
| Basic estate exclusion | $15,000,000 | $15,480,000 |
Why the increases trail headline inflation
The thresholds rose about 3.2%, while the Consumer Price Index rose 3.7% in the 12 months to September. The two are not measured the same way. The tax code uses the chained version of the index, averaged over the 12 months ending August 31, and rounds many increases down to a multiple of $50. BLS says the chained index rose 3.5% in the 12 months to September. Our explainer walks through the formula.
What this release leaves out
The release does not give 2027 limits for 401(k) plans or IRAs. A year ago the IRS announced the 2026 limits separately, on November 13, and none of its news releases from October 1 through November 5 this year give the 2027 figures.
Personal exemptions stay at zero. The income range that phases out the Lifetime Learning Credit also stays the same, at $80,000 to $90,000, or $160,000 to $180,000 on joint returns.
The IRS now calls the 2025 tax law behind several of these amounts the Working Families Tax Cuts. Its revenue procedure and last year's release use the name One, Big, Beautiful Bill.
Sources
- IRS releases tax inflation adjustments for tax year 2027 (IR-2026-133) Internal Revenue Service, November 5, 2026
- Revenue Procedure 2026-35 Internal Revenue Service, November 5, 2026
- IRS releases tax inflation adjustments for tax year 2026 (IR-2025-103) Internal Revenue Service, October 9, 2025
- Revenue Procedure 2025-32 Internal Revenue Service, October 9, 2025
- 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 (IR-2025-111) Internal Revenue Service, November 13, 2025
- IRS news releases for the current month Internal Revenue Service
- 26 U.S.C. 1: Tax imposed (cost-of-living adjustment), U.S. Code, 2023 edition U.S. Government Publishing Office
- Consumer Price Index, September 2026 U.S. Bureau of Labor Statistics, October 14, 2026
- Medicare Drug Price Negotiation Program Final Rule (CMS-4215-F): fact sheet (names Pub. L. 119-21 as the Working Families Tax Cut legislation) Centers for Medicare & Medicaid Services, November 5, 2026
Researched and drafted with AI assistance, then checked against the 9 sources above in a separate fact-check on November 5, 2026. Spotted an error? Tell us.