IRS releases 2027 tax brackets
The gist
The IRS released 2027 federal income tax brackets, raising income thresholds by about 3.2% for inflation.
The yearly adjustment prevents bracket creep but doesn't set your tax bill.
How it unfolded
- Nov 5, 2026The IRS announces inflation-adjusted tax provisions for 2027, based on a 3.2% chained Consumer Price Index adjustment.
- 2027 tax yearSeven rates apply: 10%, 12%, 22%, 24%, 32%, 35% and 37%, with the top rate hitting taxable income above $661,375 for single filers and $793,650 for married couples filing jointly.
- 2027 tax yearThe standard deduction rises to $33,200 for married couples filing jointly (up $1,000 from 2026), $16,600 for single filers and married individuals filing separately, and $24,925 for heads of households.
Key terms
- bracket creep
- The process by which inflation pushes wages into higher tax brackets, raising the share of income paid in tax.
- chained Consumer Price Index
- A price index that continuously adjusts its basket of goods to account for consumers substituting cheaper items.
- standard deduction
- A fixed dollar amount that US taxpayers who do not itemize can subtract from income before income tax is calculated.
Source: Wikipedia