2027 TAX YEAR UPDATE
New 2027 Tax Brackets: Where Do You Land?
The IRS has announced new federal income tax brackets and standard deduction amounts for 2027. Discover what’s changing and what it could mean for your financial future.
EXPLORE THE 2027 TAX BRACKETS ↓
UNDERSTANDING THE CHANGES
What Are the New 2027 Tax Brackets?
Every year, the IRS adjusts federal income tax brackets to account for inflation. These adjustments help prevent taxpayers from being pushed into higher tax brackets simply because their income increased along with the cost of living.
For 2027, the seven federal income tax rates remain unchanged, ranging from 10% to 37%. However, the income thresholds for each bracket have increased. The IRS has also announced higher standard deduction amounts and adjustments to several tax credits.
These changes apply to income earned during 2027. Taxpayers will generally report this income when filing their 2027 federal income tax returns in 2028.
10%–37%
Federal Tax Rates
All seven federal income tax rates remain the same for 2027.
$33,200
Married Filing Jointly
The new standard deduction increases by $1,000 for married couples filing jointly.
$2,300
Child Tax Credit
The maximum Child Tax Credit increases by $100 for qualifying families.
2027 FEDERAL INCOME TAX
Explore the New Tax Brackets
Select your filing status below to see the 2027 federal income tax brackets and income thresholds.
| Tax Rate | Taxable Income |
|---|---|
| 10% | $0 – $12,800 |
| 12% | $12,801 – $52,025 |
| 22% | $52,026 – $109,125 |
| 24% | $109,126 – $208,325 |
| 32% | $208,326 – $264,550 |
| 35% | $264,551 – $661,375 |
| 37% | $661,376 or more |
| Tax Rate | Taxable Income |
|---|---|
| 10% | $0 – $25,600 |
| 12% | $25,601 – $104,050 |
| 22% | $104,051 – $218,250 |
| 24% | $218,251 – $416,650 |
| 32% | $416,651 – $529,100 |
| 35% | $529,101 – $793,650 |
| 37% | $793,651 or more |
| Tax Rate | Taxable Income |
|---|---|
| 10% | $0 – $18,250 |
| 12% | $18,251 – $69,650 |
| 22% | $69,651 – $109,100 |
| 24% | $109,101 – $208,300 |
| 32% | $208,301 – $264,550 |
| 35% | $264,551 – $661,350 |
| 37% | $661,351 or more |
Important: These brackets are based
on taxable income, not necessarily your total annual
earnings. Deductions and other adjustments may reduce
the amount of income subject to federal income tax.
A COMMON TAX MISCONCEPTION
How Do Tax Brackets Actually Work?
One of the biggest misconceptions about income taxes is that moving into a higher tax bracket means all of your income gets taxed at that higher rate.
That’s not how the federal tax system works. The United States uses a progressive tax system, meaning different portions of your taxable income are taxed at different rates.
Only the portion of your income that falls within a particular bracket is taxed at that bracket’s rate.
Example: Single Taxpayer
Assume a single taxpayer has $60,000 in taxable income for 2027.
First $12,800 at 10%
$1,280
Next $39,225 at 12%
$4,707
Remaining $7,975 at 22%
$1,754.50
Estimated Federal Tax
$7,741.50
Simplified illustration using 2027 tax brackets. Assumes $60,000 of taxable income, with no additional taxes or credits.
2027 STANDARD DEDUCTIONS
What Can You Deduct?
The standard deduction reduces the amount of income subject to federal income tax. The IRS has increased these amounts for the 2027 tax year.
Single Filers
$16,600Married Filing Jointly
$33,200Head of Household
$24,925Married individuals filing separately also have a standard deduction of $16,600. Taxpayers generally choose between the standard deduction and itemizing eligible deductions.
MORE THAN TAX BRACKETS
Other Important 2027 Tax Changes
Several other tax provisions are changing for 2027. Here are a few worth knowing about.
Child Tax Credit
Up to $2,300The maximum Child Tax Credit increases to $2,300 per qualifying child. Up to $1,800 may be refundable, subject to applicable eligibility requirements.
Alternative Minimum Tax
$93,000The AMT exemption for unmarried individuals increases to $93,000. For married couples filing jointly, the exemption increases to $144,700.
Gift Tax Annual Exclusion
$20,000The annual gift tax exclusion increases to $20,000 per recipient for gifts made during calendar year 2027.
Estate Tax Exclusion
$15.48 MillionThe federal estate tax basic exclusion amount increases to $15.48 million for individuals who die during 2027.
Foreign Earned Income Exclusion
$137,300The foreign earned income exclusion increases to $137,300 for qualifying taxpayers working abroad.
Health Flexible Spending Accounts
$3,500The annual contribution limit for health flexible spending arrangements increases to $3,500 for 2027.
PLAN AHEAD WITH 1826 PFS
Don’t Just File Your Taxes. Plan for Them.
Understanding your tax bracket is only one piece of the puzzle. The right tax planning strategy can help you make informed financial decisions, prepare for upcoming tax obligations, and take advantage of opportunities available to you.
Whether you’re an individual taxpayer or a business owner, Paige Financial Services is here to help you navigate your tax planning and preparation needs.
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Tax information is provided for general educational
purposes only and should not be considered tax,
legal, or financial advice. Tax laws and regulations
are subject to change. The information on this page
reflects IRS guidance announced November 5, 2026,
for tax year 2027. Individual circumstances,
deductions, credits, and eligibility requirements
may affect your actual tax liability. Consult a
qualified tax professional regarding your specific
situation.
Source: Internal Revenue Service,
Revenue Procedure 2026-35.