IRS raises 2027 income thresholds 3.2%

The IRS raised federal income-tax bracket thresholds by about 3.2% for tax year 2027, reflecting inflation and meaning taxpayers can earn more before moving into a higher marginal bracket. The seven tax rates remain unchanged, from 10% to 37%; the top rate will apply to taxable income above $661,375 for single filers and $793,650 for married couples filing jointly. The standard deduction also rises to $16,600 for single filers and $33,200 for joint filers. The IRS increased other inflation-adjusted tax provisions as well, including the estate and gift tax exemption, which reaches $15.48 million per person. These changes apply to 2027 income and generally affect returns filed in 2028.