IRS updates 2027 income tax brackets. Here's what filers should know

Tax brackets are revised each year to reflect inflation, which helps keep rising prices from automatically pushing taxpayers into a higher bracket.

The Internal Revenue Service has announced higher federal income tax bracket thresholds for 2027, giving Americans more room to earn taxable income before entering a higher bracket.

The tax rates themselves have not changed, but the income levels that determine each bracket have increased.

Because the IRS adjusts brackets annually for inflation, households are less likely to be bumped into a higher bracket just because their earnings rose while their buying power stayed flat. The update arrives as many Americans continue to face elevated costs for housing, groceries, gas, and other daily expenses.

The lowest federal income tax rate remains 10% for single filers earning $12,800 or less and married couples filing jointly earning $25,600 or less. The highest rate is 37% for single filers making more than $661,375 and married couples filing jointly making more than $793,650.

Income in between is taxed according to the bracket it falls into.

Find your tax bracket below:

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