IRS releases 2027 marginal tax rates
The gist
The IRS kept its seven federal income tax rates at 10% to 37% for 2027 and raised bracket thresholds with inflation.
Higher thresholds and a $33,200 joint standard deduction mean filers keep more before higher rates apply.
How it unfolded
- Nov 5, 2026The IRS announced 2027 federal income tax brackets and standard deductions, saying the seven rates stay at 10% to 37% while income thresholds rise with inflation.
- Nov 5, 2026The agency set the 2027 standard deduction at $33,200 for married couples filing jointly (up $1,000) and $16,600 for single filers and married individuals filing separately (up $500).
- Nov 5, 2026The child tax credit rises $100 to $2,300, with the refundable amount at $1,800, and the annual gift exclusion rises to $20,000 from $19,000.
Key terms
- standard deduction
- A fixed dollar amount that US taxpayers who do not itemize can subtract from income before income tax is calculated.
- AMT exemptions
- Amounts of income exempt from the alternative minimum tax, a separate U.S. federal tax on certain high-income individuals, estates, and trusts.
- child tax credit
- A tax credit for parents with dependent children, often tied to the number of children and sometimes to income.
Source: Wikipedia