The IRS is increasing federal income tax bracket thresholds and the standard deduction for 2027. Those adjustments may lower some taxpayers’ bills as income limits move higher with inflation.
The changes apply to income earned in 2027 and generally will affect tax returns filed in 2028.
The standard deduction — the amount taxpayers can subtract from income before calculating taxable income — will increase to $33,200 for married couples filing jointly, up $1,000 from 2026. It will rise to $16,600 for single filers and $24,925 for heads of household.
The top federal marginal income tax rate will remain 37%, but it will apply to taxable income above $661,375 for single taxpayers and $793,650 for married couples filing jointly.
The Child Tax Credit is also going up. The maximum credit will increase to $2,300 per child, a $100 rise from 2026. The maximum refundable portion will climb to $1,800.
The maximum Earned Income Tax Credit will rise to $8,496 for eligible taxpayers with three or more qualifying children, up from $8,231 in 2026.
More from Digilifetrends
For a Retired Couple With an $850,000 IRA, the Biggest Roth Conversion That Still Fits the 12% Bracket Is $73,000
This year’s required minimum distribution and any Roth conversion intended for next year both need to be completed by Dec. 31. For a 75-year-old couple with an $850,000 IRA, the…
7 min read · Published 2026-11-08Why Returning to Work Could Temporarily Shrink a Retiree’s Social Security Payments
A retiree may take a job hoping for extra income, only to find Social Security withholding his checks for several months. Those payments are not necessarily lost, but the…
4 min read · Published 2026-11-08A Simple Retirement Review Can Quickly Make You Feel More Confident
shapecharge · iStock.com
2 min read · Published 2026-11-08