IRS Adjusts Tax Brackets for 2027: Standard Deduction Up to $33,200
The IRS announced 2027 inflation adjustments on November 5, 2026. The standard deduction rises to $33,200 for joint filers and $16,600 for single filers, the child tax credit climbs to $2,300, and bracket thresholds move higher. The changes cover income earned in 2027, filed in 2028.
The US Internal Revenue Service (IRS) adjusts tax brackets for 2027 under figures it announced November 5, 2026. The standard deduction for married couples filing jointly rises by $1,000, from $32,200 to $33,200.
Single filers get a $500 increase, from $16,100 to $16,600. People filing as heads of household will qualify for a $24,925 deduction.
What the new brackets look like
Federal income tax rates stay between 10% and 37%. What changes is how much income each rate covers, so workers can earn more before a higher rate applies to part of their pay.
For single taxpayers in 2027, the 10% rate applies to the first $12,800 of taxable income. The 12% rate covers income above that, up to $52,025.
For married couples filing jointly, the 10% rate covers the first $25,600. The 12% rate runs up to $104,050.
At the top, the 37% rate applies to taxable income above $661,375 for single filers and $793,650 for joint filers.
Moving into a higher bracket does not mean all income is taxed at that rate. Only the portion inside that bracket faces the higher percentage.
Deductions explained
The standard deduction is the amount taxpayers can subtract from income before federal tax is calculated. It is not a refund.
A single person earning $50,000 who takes the new deduction would have $33,400 left to be taxed, before any other adjustments. The deduction does not mean they receive a $16,600 refund.
Credits for families
The maximum child tax credit increases from $2,200 to $2,300 per qualifying child. Eligible families may receive up to $1,800 of that credit as a refund, even if they do not owe enough federal income tax to use the full amount.
The earned income tax credit also grows. Families with three or more qualifying children could receive up to $8,496, compared with $8,231 in 2026.
The annual gift tax exclusion rises from $19,000 to $20,000 per recipient. Other updates touch adoption expenses and workplace health savings plans.
When the changes apply
The adjustments are part of the IRS's yearly inflation update, which covers nearly 70 tax rules. The agency published the full figures in Revenue Procedure 2026-35.
The new numbers generally apply to income earned beginning January 1, 2027, with returns filed in 2028. Americans filing in early 2027 will still use the rules for the 2026 tax year.
