IRS 2027 Tax Brackets and Standard Deduction: What Changes for Your Paycheck

The Internal Revenue Service has released the official tax numbers for 2027, and the headline figure for most households is the standard deduction: $16,600 for single filers and $33,200 for married couples filing jointly. The new amounts, announced on November 5, 2026, raise the income shielded from federal tax by $500 for single filers and $1,000 for couples — money that stays in your pocket before a single tax bracket applies.

The update covers almost 70 tax provisions in Revenue Procedure 2026-35. Tax rates themselves do not change — they stay at 10% to 37% — but every bracket threshold moves up with inflation, which means more of each paycheck is taxed at lower rates. Here is what changed, what it means for you, and what is still to come.

What changed

The standard deduction is the amount of income you can earn before federal income tax applies, and it rises for every filing status in 2027. Single filers and married individuals filing separately get $16,600, up from $16,100 in 2026. Married couples filing jointly get $33,200, up from $32,200. Heads of household get $24,925, up from $24,150.

The seven tax rates are unchanged, but the income thresholds where each rate starts are about 3.2% higher. For 2027, the 10% rate applies to taxable income up to $12,800 for single filers ($25,600 for joint filers). The 12% rate starts above that, the 22% rate above $52,025 single ($104,050 joint), the 24% rate above $109,125 single ($218,250 joint), the 32% rate above $208,325 single ($416,650 joint), and the 35% rate above $264,550 single ($529,100 joint). The top rate of 37% applies to single filers with taxable income above $661,375, and to joint filers above $793,650.

Family credits move up too. The maximum child tax credit rises to $2,300 per qualifying child for 2027, up $100 from 2026, and up to $1,800 of it can be refundable, also up $100. The maximum Earned Income Tax Credit for workers with three or more qualifying children rises to $8,496, up from $8,231.

Other amounts in the announcement include the estate tax exclusion, which rises to $15,480,000 for people who die in 2027, up from $15,000,000 in 2026, and the annual gift exclusion, which rises to $20,000 per recipient, up from $19,000. Health flexible spending accounts can take up to $3,500 in salary reductions, up $100, and the monthly limit for qualified transportation and parking benefits rises to $350, up $10. Personal exemptions remain at $0, as they have since 2018.

What it means for you

First, mind the timing. These are tax year 2027 figures: they apply to income earned from January 1 through December 31, 2027, on the return you file in early 2028. The tax return you file in spring 2027 still uses the 2026 numbers, so do not mix the two years up when you plan.

Second, the wider brackets protect against what tax experts call bracket creep — inflation pushing your pay into a higher tax rate even though your buying power has not really grown. For example, a single filer with $60,000 of taxable income in 2027 will have more of that income taxed at 12% than in 2026, because the 22% bracket now starts at $52,025 instead of a lower threshold. The saving is modest for most households, but it applies automatically, with no form to fill in.

Third, the higher standard deduction means a little more of every paycheck is tax-free from the start. A married couple taking the standard deduction will shield $1,000 more of their 2027 income than in 2026. Families claiming the child tax credit get another $100 per child. None of this is a tax cut in the rates — it is an inflation adjustment, designed to keep the tax system roughly in step with prices.

This article is general information, not tax advice for any individual situation. If your income, family situation, or deductions are unusual, the IRS tables in Revenue Procedure 2026-35 are the place to check the exact figures that apply to you.

What to watch next

One big set of numbers is still missing. The 401(k) and IRA contribution limits for 2027 are not part of this announcement — the IRS publishes those in a separate retirement-plan notice, usually later in November. Do not use last year's limits to plan 2027 retirement contributions until that notice appears.

It is also worth watching how employers handle the new figures. Payroll withholding tables for 2027 will be updated to reflect the wider brackets and higher standard deduction, so the effect should show up gradually in paychecks during 2027 rather than as a single lump sum. And if you are planning year-end moves, remember that the decisions that matter for the return you file next spring are governed by the 2026 figures, not these new ones.

The IRS publishes the full tables for all almost 70 adjusted provisions in Revenue Procedure 2026-35 on irs.gov, and the headline figures are in its news release IR-2026-133.

Source: Internal Revenue Service, News Release IR-2026-133, "IRS releases tax inflation adjustments for tax year 2027," November 5, 2026; Revenue Procedure 2026-35.