2027 IRS tax brackets: Updated income thresholds and standard deduction amounts

The Internal Revenue Service has unveiled the federal income tax brackets for 2027, raising the income levels taxpayers can reach before entering a higher bracket.

The agency said it is adjusting nearly 70 tax provisions for inflation, including income tax brackets, the standard deduction and the child tax credit. The revisions apply to income earned in 2027 and will generally affect tax returns filed the following year.

The seven federal tax rates stay the same at 10%, 12%, 22%, 24%, 32%, 35% and 37%. The difference is in the income ranges that fall within each bracket.

As a result, many taxpayers can earn more before a higher marginal rate kicks in.

2027 federal income tax brackets

For single taxpayers, the 2027 brackets are:

• 10%: $12,800 or less

• 12%: More than $12,800

• 22%: More than $52,025

• 24%: More than $109,125

• 32%: More than $208,325

• 35%: More than $264,550

• 37%: More than $661,375

For married couples filing jointly, the brackets are:

• 10%: $25,600 or less

• 12%: More than $25,600

• 22%: More than $104,050

• 24%: More than $218,250

• 32%: More than $416,650

• 35%: More than $529,100

• 37%: More than $793,650

These thresholds apply to taxable income, not necessarily a person's total salary or gross pay.

The U.S. tax code uses a progressive system, so moving into a higher bracket does not mean all income is taxed at that higher rate. Only the portion of income within that bracket is taxed at that rate.

Standard deduction rises in 2027

The standard deduction is also increasing.

For married couples filing jointly, it will climb to $33,200, which is $1,000 above the 2026 amount.

For single filers and married people filing separately, it will rise to $16,600, an increase of $500.

Heads of household will be able to claim a $24,925 standard deduction, up $775 from 2026.

The standard deduction lowers the amount of income subject to federal tax for people who do not itemize deductions.

Child tax credit gets a boost

Families may also receive a larger child tax credit.

The maximum credit will increase to $2,300, up $100 from 2026. The refundable portion will rise to $1,800, also $100 higher than in 2026.

When the new tax figures apply

The updated numbers do not apply to tax returns filed the next spring.

Instead, they apply to income earned during the 2027 tax year, with returns generally filed afterward.

These annual inflation adjustments are designed to keep taxpayers from being pushed into higher brackets simply because wages and prices have gone up.