Yes, the Internal Revenue Service has raised the 2027 tax brackets by about 3.2 percent, and the standard deduction for single filers will rise to 16,600 dollars. The agency announced its annual inflation adjustments for tax year 2027 on Thursday, November 5, 2026. The seven tax rates do not change. They stay at 10, 12, 22, 24, 32, 35 and 37 percent. Only the income thresholds move, so more of your income can fall into a lower bracket before a higher rate applies. For married couples filing jointly, the standard deduction rises to 33,200 dollars. For heads of household, it is 24,925 dollars.
Quick Facts
| Detail | What we know |
|---|---|
| Announcement date | Thursday, November 5, 2026 |
| Tax year | 2027, for income earned in 2027, on returns filed in early 2028 |
| Bracket increase | About 3.2 percent, larger than the 2 percent adjustment for 2026 |
| Tax rates | Unchanged at 10, 12, 22, 24, 32, 35 and 37 percent |
| Standard deduction, single | 16,600 dollars, up 500 dollars from 16,100 dollars |
| Standard deduction, joint | 33,200 dollars, up 1,000 dollars from 32,200 dollars |
| Standard deduction, head of household | 24,925 dollars |
| Child tax credit maximum | 2,300 dollars, up 100 dollars from 2026 |
| SALT deduction cap | 40,804 dollars for 2027, up from 40,400 dollars in 2026 |
| Provisions adjusted | About 70 provisions of the tax code |
| Inflation measure | Chained consumer price index, measured from September through August |
What Changes in 2027 and What Stays the Same
The headline change is simple to state and easy to misunderstand. The brackets move, but the rates do not. A bracket is a slice of income. A rate is the share of tax applied to that slice. When the thresholds rise by about 3.2 percent, each slice gets wider. That means a person can earn more money in 2027 before the next, higher rate starts to apply to the next slice of income. It does not mean that all of a person’s income is taxed at a lower rate, and it does not mean that a pay rise is tax free.
The New Standard Deduction in Plain Terms
The standard deduction is the amount of income that is not taxed at all for a filer who does not itemize. For 2027, it rises to 16,600 dollars for single filers and for married people filing separately. That is up 500 dollars from 16,100 dollars. For married couples filing jointly, it rises to 33,200 dollars, up 1,000 dollars from 32,200 dollars. For heads of household, it is 24,925 dollars.
In plain terms, a single filer will have 500 dollars more income shielded from tax than under the 2026 figure, and a married couple filing jointly will have 1,000 dollars more. Those are modest changes on their own, and their value depends on the rest of a person’s income and filing status.
Single Filer Brackets, Threshold by Threshold
For a single filer, the 10 percent rate covers income up to 12,800 dollars in 2027, up from 12,400 dollars. The 12 percent band runs to 52,025 dollars. The 22 percent band ends at 109,125 dollars. The 24 percent band ends at 208,325 dollars. The 32 percent band ends at 264,550 dollars. The 35 percent band ends at 661,375 dollars. Income above that level is taxed at 37 percent.
Married Couples, Child Tax Credit and the Alternative Minimum Tax
For married couples filing jointly, the 10 percent rate covers income up to 25,600 dollars. The 12 percent band runs to 104,050 dollars. The 22 percent band ends at 218,250 dollars. The 24 percent band ends at 416,650 dollars. The 32 percent band ends at 529,100 dollars. The 35 percent band ends at 793,650 dollars. Income above that level is taxed at 37 percent. Those joint thresholds are, in the main, about double the single thresholds, which is the pattern many couples will expect.
The maximum child tax credit for 2027 is 2,300 dollars, up 100 dollars from 2026, per Barron’s. That is a small rise, but for a family claiming the credit it is a real number on the return. It sits alongside the wider brackets and the higher standard deduction, so a family should look at the three together rather than judging the year by any one of them alone. A rise of 100 dollars in the maximum credit will not change a family’s finances by itself, yet it is part of the same annual update.
The SALT Cap, the Timing and What to Do Next
The cap on the deduction for state and local taxes, known as SALT, also rises for 2027. The cap rises to 40,804 dollars for 2027, and the income limit for the full deduction rises to 510,050 dollars. For 2026, the cap is 40,400 dollars. That is a rise of 404 dollars in the cap, which will matter most to filers in states with high state and local taxes who itemize and claim the deduction. For filers who take the standard deduction, the SALT cap will not change the result, because they are not itemizing at all.
The announcement came days after the midterm elections, in which high prices weighed on voters. That timing is part of the news story, not a change to the tax rules themselves. The adjustments follow a set formula based on prices, using the chained consumer price index and a measurement window from September through August. And 2027 is the second full year under the 2025 tax law, Public Law 119-21.
What should a reader do next? First, check your filing status and find the figures that match it, single, joint, or head of household. Second, remember the timing: these are 2027 figures for income earned in 2027, filed in early 2028. Third, do not treat the bracket rise as a reason to change your withholding on its own. Retirement account limits for 401(k) plans and IRAs are announced separately each November and had not been published yet, so wait for that separate announcement. For context on the wider economy, read the report on jobless claims falling to 189,000, the lowest since July, the report on third quarter productivity surging by 3.6 percent as unit labor costs fell, and the report on the Bank of England raising rates to 4 percent in its first hike since 2023.
This is general information, not tax advice, and readers should check with a tax professional for their own situation. A professional can look at your full income, your filing status, your deductions and your credits, and can say how the new figures apply to you.
Will my tax rate go down in 2027?
No, the rates do not change. They stay at 10, 12, 22, 24, 32, 35 and 37 percent. Only the income thresholds move, by about 3.2 percent, so more income can fall into a lower bracket before a higher rate applies.
What is the standard deduction for 2027?
For single filers and married people filing separately, it is 16,600 dollars, up 500 dollars from 16,100 dollars. For married couples filing jointly, it is 33,200 dollars, up 1,000 dollars from 32,200 dollars. For heads of household, it is 24,925 dollars.
When do the 2027 figures apply?
They apply to income earned in 2027, on returns filed in early 2028. The return filed in spring 2027 still uses the 2026 numbers, so do not use the new figures for that return.
What is the child tax credit for 2027?
The maximum child tax credit for 2027 is 2,300 dollars, up 100 dollars from 2026, per Barron’s. The SALT deduction cap also rises, to 40,804 dollars, with the income limit for the full deduction at 510,050 dollars.
Sources
- Barron’s: IRS 2027 tax brackets and standard deduction figures
- MarketWatch: 2027 tax brackets, standard deduction and SALT breaks
- Global1 News: IRS 2027 tax brackets and standard deduction at 16600 dollars
Final Thoughts
The 2027 tax figures are a steady, annual update, not a surprise. Brackets rise by about 3.2 percent, the standard deduction reaches 16,600 dollars for single filers and 33,200 dollars for joint filers, the child tax credit rises to 2,300 dollars, and the SALT cap rises to 40,804 dollars. The rates stay the same, the timing is clear, and the figures apply to income earned in 2027. Check the figures for your own filing status, and speak to a tax professional if you want advice for your own situation.
