IRS Sets 2027 Tax Brackets: Standard Deduction Rises to $16,600

The Internal Revenue Service has set the federal income tax brackets for 2027. The tax rates are not changing — but the income thresholds are, rising about 3.2 percent, and the standard deduction is going up too. The new figures apply to income earned in 2027, which most people will report on the returns they file in 2028 — not the 2026 return due next spring.

The 2027 tax brackets

The seven federal rates stay at 10, 12, 22, 24, 32, 35 and 37 percent. What changes is how much income falls into each bracket — and only the income above each threshold is taxed at the higher rate. Here are the brackets for 2027, from the IRS announcement:

• 10% — up to $12,800 single, $25,600 married filing jointly

• 12% — $12,801 to $52,025 single, $25,601 to $104,050 joint

• 22% — $52,026 to $109,125 single, $104,051 to $218,250 joint

• 24% — $109,126 to $208,325 single, $218,251 to $416,650 joint

• 32% — $208,326 to $264,550 single, $416,651 to $529,100 joint

• 35% — $264,551 to $661,375 single, $529,101 to $793,650 joint

• 37% — over $661,375 single, over $793,650 joint

Heads of household have their own thresholds, starting at 10 percent on income up to $18,250 and reaching 37 percent above $661,350. The top rate's threshold rose from $640,601 in 2026 to $661,375 for single filers, and from $768,701 to $793,650 for married couples filing jointly.

Standard deduction and credits

The standard deduction — the amount subtracted from income if you do not itemize — rises to $16,600 for single filers, up $500 from $16,100 in 2026, and to $33,200 for married couples filing jointly, up $1,000 from $32,200. Heads of household get $24,925, up $775.

Other 2027 figures: the maximum child tax credit rises to $2,300 per qualifying child, up $100, with $1,800 of it refundable. The maximum earned income tax credit for families with three or more children rises to $8,496. Taxpayers 65 and older get an additional standard deduction of $2,100 if single or $1,700 per spouse when married, plus a new $6,000 senior deduction that phases out above $75,000 of income for single filers and $150,000 for joint filers and is scheduled to expire after 2028. The personal exemption stays at $0.

For homeowners who itemize, the cap on state and local tax deductions rises to $40,804 for 2027, with the full deduction available up to $510,050 of income, according to Dow Jones.

What it means for you

The annual adjustment is designed to fight "bracket creep" — inflation pushing people into higher brackets on the same real income. It does not guarantee a lower tax bill: what you owe depends on total income, deductions and credits, not the brackets alone. And none of this changes the 2026 return most people file next spring; these are 2027 figures. Retirement-plan contribution limits were not part of this announcement — the IRS publishes those separately. These are federal figures only; Virginia sets its own state income tax brackets separately.

For the full tables, including heads of household and capital gains brackets, see the Tax Foundation's breakdown of Revenue Procedure 2026-35.