2027 Tax Brackets: How Much You Can Earn Before Your Rate Goes Up

The IRS has set the 2027 federal income tax brackets, raising the income limits for every rate. The agency announced the inflation adjustments on Nov. 5 in IR-2026-133, with the full details in Revenue Procedure 2026-35.

The changes apply to tax year 2027, so they show up on the returns most people will file in 2028. The seven tax rates stay the same, from 10% to 37%. What changes is how much income fits into each one.

“American individuals and businesses will see increased tax benefits next tax year,” IRS Chief Executive Officer Frank J. Bisignano said in the release.

The 2027 Standard Deduction

The standard deduction rises to $33,200 for married couples filing jointly, up $1,000 from $32,200 in 2026, according to the IRS. Single filers and married people filing separately get $16,600, up $500 from $16,100. Heads of household get $24,925, up from $24,150.

Most filers subtract that amount from their income before any tax rate applies.

2027 Tax Brackets for Single Filers

• 10%: taxable income up to $12,800
• 12%: over $12,800
• 22%: over $52,025
• 24%: over $109,125
• 32%: over $208,325
• 35%: over $264,550
• 37%: over $661,375

2027 Tax Brackets for Married Couples Filing Jointly

• 10%: taxable income up to $25,600
• 12%: over $25,600
• 22%: over $104,050
• 24%: over $218,250
• 32%: over $416,650
• 35%: over $529,100
• 37%: over $793,650

These limits apply to taxable income, which is what’s left after the standard deduction or itemized deductions. Each rate applies only to the slice of income inside its bracket, so moving into a higher bracket doesn’t raise the tax on the rest of your income.

What the New Brackets Mean at 3 Sample Incomes

The examples below are simplified estimates. They assume wage income only, the standard deduction, and no tax credits, and they compare federal income tax under the 2026 rules with the new 2027 numbers.

A single filer earning $75,000 would have $58,400 in taxable income in 2027 and owe about $7,390. Under the 2026 numbers, the same salary would mean about $7,670 in federal income tax, so the 2027 bill is roughly $280 lower.

A single filer earning $67,000 shows how the bracket limits work. In 2026, that person’s last $500 of taxable income falls in the 22% bracket. In 2027, the higher deduction and the 12% bracket reaching $52,025 keep all of their taxable income in the 10% and 12% brackets.

A married couple earning $150,000 would have $116,800 in taxable income in 2027 and owe about $14,780, compared with about $15,340 in 2026. That’s a difference of about $560.

Actual bills will vary with other income, credits, and deductions.

Other 2027 Tax Numbers to Know

The maximum child tax credit rises to $2,300 per child, up $100 from 2026, and up to $1,800 of it is refundable, the IRS said. The annual gift tax exclusion climbs to $20,000 from $19,000, and the estate tax exclusion rises to $15.48 million from $15 million.

For workplace health flexible spending accounts, the contribution limit increases to $3,500 in 2027, up $100 from 2026.

For a look at last year’s changes, see how the 2026 IRS adjustments affected deductions.