IRS Announces Updated Federal Income Tax Brackets and Standard Deductions for 2027

The Internal Revenue Service released new federal income tax brackets and higher standard deductions for the 2027 tax year, which will apply to returns filed in 2028. All income thresholds for each bracket were increased, and the agency also adjusted long-term capital gains brackets, the estate and gift tax exemption, and the earned income tax credit eligibility.

For 2027, the top marginal rate of 37% applies to single filers with taxable income above $661,375 and to married couples filing jointly earning $793,650 or more. The other rates are 35% for incomes over $264,550 ($529,100 for joint filers), 32% for incomes over $208,325 ($416,650), 24% for incomes over $109,125 ($218,250), 22% for incomes over $52,025 ($104,050), 12% for incomes over $12,800 ($25,600), and 10% for incomes at or below those amounts.

The standard deduction will rise to $33,200 for married couples filing jointly, up from $32,200 in 2026, and to $16,600 for single filers, up from $16,100.

The IRS adjusts bracket thresholds each year based on changes in the consumer price index, which rose 3.7% in September 2026 compared with a year earlier, according to the Bureau of Labor Statistics.