IRS updates federal tax brackets and deductions for 2027

The IRS has released new federal income tax brackets for 2027, increasing the income thresholds to reflect inflation.

For single filers, the revised brackets are:

• 10%: $12,800 or less

• 12%: $12,801 to $52,025

• 22%: $52,026 to $109,125

• 24%: $109,126 to $208,325

• 32%: $208,326 to $264,550

• 35%: $264,551 to $661,375

• 37%: More than $661,375

For married couples filing jointly, the thresholds are generally twice as high, with the exception of the top bracket.

The changes apply to income earned in 2027, with tax returns filed the following year.

The agency also said the standard deduction will increase, lowering the amount of income subject to federal tax.

Married couples filing jointly will get a standard deduction of $33,200, which is $1,000 more than the prior year. Single filers will have a deduction of $16,600, and heads of household will be able to deduct $24,925.

Families will also see a larger child tax credit, which will rise by $100 to a maximum of $2,300 for each qualifying child.