2027 Tax Brackets and Standard Deduction: What Changes for You
The IRS released the 2027 federal tax brackets and standard deduction. See the new income ranges for single and married filers, plus the child tax credit and gift limit.
Every fall the IRS adjusts dozens of tax figures for inflation. The 2027 numbers apply to income you earn starting January 1, 2027 (on the tax return you'll file in early 2028). Higher brackets and a bigger standard deduction mean more of your income is taxed at lower rates.
Filing in 2027? The return you file in spring 2027 covers 2026 income and uses the 2026 brackets. The figures below are for planning your 2027 paychecks, withholding and year-ahead moves.
2027 standard deduction
| Filing status | 2027 standard deduction |
|---|---|
| Single or married filing separately | $16,600 |
| Married filing jointly | $33,200 |
| Head of household | $24,925 |
Taxpayers 65 or older (or blind) get an additional standard deduction on top of these amounts. Through 2028, people 65+ may also claim the separate $6,000 senior deduction.
2027 federal income tax brackets
| Tax rate | Single (taxable income) | Married filing jointly |
|---|---|---|
| 10% | $0 – $12,800 | $0 – $25,600 |
| 12% | $12,801 – $52,025 | $25,601 – $104,050 |
| 22% | $52,026 – $109,125 | $104,051 – $218,250 |
| 24% | $109,126 – $208,325 | $218,251 – $416,650 |
| 32% | $208,326 – $264,550 | $416,651 – $529,100 |
| 35% | $264,551 – $661,375 | $529,101 – $793,650 |
| 37% | Over $661,375 | Over $793,650 |
How brackets actually work
The U.S. uses marginal tax brackets: each rate applies only to the slice of income inside that bracket. Moving into a higher bracket never makes your whole income taxed at the higher rate.
Example (single, 2027): wages of $70,000 minus the $16,600 standard deduction leave $53,400 of taxable income.
- 10% on the first $12,800 = $1,280
- 12% on $12,801–$52,025 ($39,225) = $4,707
- 22% on the last $1,375 = $302.50
Total federal income tax: about $6,290, an effective rate of roughly 9% of wages, even though the top bracket reached is 22%. Simplified example before credits.
Other key 2027 numbers
- Child tax credit: up to $2,300 per qualifying child, with up to $1,800 refundable. See the child tax credit guide.
- Annual gift tax exclusion: $20,000 per recipient (up from $19,000). See gift tax rules.
- Estate tax exemption: $15.48 million per person.
- Health FSA limit: $3,500, with up to $700 carryover if your plan allows. See FSA rules.
- Maximum earned income tax credit (three or more children): $8,496.
What to do with this information
- Check your withholding in January. Employers update withholding tables automatically, but a life change (marriage, a new child, a second job) is a reason to update your Form W-4.
- Plan income around bracket edges. If you are near the top of a bracket, pre-tax 401(k) or HSA contributions can keep more income in the lower rate. See 401(k) basics and HSAs.
- Consider Roth moves in low-income years. A year with lower income can be a good time for a Roth conversion.
Key takeaways
- 2027 standard deduction: $16,600 single, $33,200 married filing jointly, $24,925 head of household.
- The seven rates (10% to 37%) stay the same; the income ranges rise.
- Brackets are marginal: only income above each threshold is taxed at the higher rate.
- Returns filed in 2027 still use the 2026 figures.
Source: IRS tax year 2027 inflation adjustments (November 2026).
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