IRS unveils federal income tax brackets for 2027: What to know

The IRS has published the federal income tax brackets and standard deductions for 2027.

Each year, the agency updates these figures to reflect inflation. Here’s a breakdown of the changes.

2027 tax brackets

According to the IRS, the 2027 income tax brackets are:

• 37%: for incomes over $661,375 ($793,650 for married couples filing jointly)
• 35%: for incomes over $264,550 ($529,100 for married couples filing jointly)
• 32%: for incomes over $208,325 ($416,650 for married couples filing jointly)
• 24%: for incomes over $109,125 ($218,250 for married couples filing jointly)
• 22%: for incomes over $52,025 ($104,050 for married couples filing jointly)
• 12%: for incomes over $12,800 ($25,600 for married couples filing jointly)
• 10%: for incomes of $12,800 or less ($25,600 for married couples filing jointly)

The standard deduction is also set to increase, rising to $33,200 for married couples filing jointly, up from $32,200. Single filers will see their standard deduction move to $16,600, compared with $16,100 previously.

Frank J. Bisignano, the IRS chief executive officer, said in a statement that taxpayers will continue to see benefits from the Working Families Tax Cuts, including higher credits and deductions tied to the inflation adjustment. He also said individuals and businesses should see added tax benefits in the next tax year, including a larger standard deduction, a higher Child Tax Credit for families and a greater amount that businesses can expense.

How tax brackets work

The U.S. federal tax system uses seven progressive brackets, according to Fidelity.

That means income is taxed at different rates as earnings rise. Once income moves into a higher bracket, only the amount above that threshold is taxed at the higher rate.

The IRS updates these brackets every year to keep pace with inflation, helping taxpayers estimate what they may owe based on income and filing status.

Different bracket ranges apply depending on filing status, including single filers, married couples filing jointly, married couples filing separately, and heads of household who are unmarried but caring for a qualifying child or dependent.