2027 IRS standard deduction amounts
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
The IRS raised the 2027 standard deduction to $33,200 for married couples filing jointly, up from $32,200.
The inflation adjustment sets how much income is shielded before tax.
Background
The IRS (Internal Revenue Service) is the U.S. agency that sets federal tax brackets and standard deductions, the flat amount filers can subtract from income before tax. It adjusts these figures yearly based on the consumer price index, and the 2027 numbers arrive as Americans wrestle with the rising cost of housing, groceries, gasoline and other living expenses. The same announcement also raised the estate and gift tax exemption and earned income tax credit eligibility figures.
How it unfolded
- Sep 11, 2026Bloomberg Tax projected the 2027 standard deduction at $33,200 for joint filers, $24,925 for heads of household and $16,600 for single filers, with bracket thresholds rising 3.2%.
- Nov 5, 2026The IRS announced the 2027 brackets and standard deductions: $33,200 for married couples filing jointly, up from $32,200, and $16,600 for single filers, up from $16,100.
- Nov 5, 2026The IRS said the top 37% rate applies to individuals with taxable income above $661,375 and joint filers at $793,650 or more, and raised the estate and gift tax basic exclusion amount to $15.48 million per person.
Key terms
- standard deduction
- A fixed dollar amount that US taxpayers who do not itemize can subtract from income before income tax is calculated.
- estate and gift tax exemption
- The amount of property a person may transfer at death or by gift without owing US federal estate or gift tax.
- earned income tax credit
- A refundable US federal tax credit for low- and moderate-income working people, especially those with children.
Source: Wikipedia
Who’s saying what
- Official
- The IRS announced the new brackets and standard deductions and raised the income thresholds for each bracket for 2027.
- Analysts
- Bloomberg Tax projected the same $33,200 joint and $16,600 single figures ahead of the IRS announcement, with bracket thresholds up 3.2%.