2027 Tax Brackets: IRS Rates, Standard Deduction & Examples

Short answer: The IRS released the 2027 federal income tax brackets on November 5, 2026 (news release IR-2026-133 and Revenue Procedure 2026-35). The seven rates stay the same (10%, 12%, 22%, 24%, 32%, 35% and 37%), but every income threshold rises by roughly 3.2% for inflation. For a single filer, the 10% bracket now covers taxable income up to $12,800, the 22% bracket starts above $52,025, and the 37% top rate applies above $661,375 ($793,650 for married couples filing jointly). The standard deduction rises to $16,600 for single filers, $33,200 for married couples filing jointly and $24,925 for heads of household. These numbers apply to income you earn in 2027, reported on the tax return you file in early 2028.

This guide lists every 2027 bracket by filing status, shows what changed from 2026, walks through worked examples with real math, and explains the moves that actually change which bracket your next dollar lands in. It is general education for U.S. taxpayers, not personalized tax advice.

2027 vs 2026: what changed at a glance

The IRS adjusts dozens of tax figures each year using a chained CPI formula. For 2027, these are the changes most households will notice:

Tax rates: unchanged. Still seven brackets from 10% to 37%, now permanent under the 2025 tax law (enacted as the One Big Beautiful Bill Act, which the IRS now calls the Working Families Tax Cuts)
Bracket thresholds: up about 3.2% across the board. Example: the single 22% bracket starts at $52,025 in 2027, up from $50,400 in 2026
Standard deduction: $16,600 single (up $500), $33,200 married filing jointly (up $1,000), $24,925 head of household (up $775)
Extra standard deduction for age 65+ or blind: $1,700 per qualifying spouse if married, $2,100 if unmarried (up from $1,650 and $2,050)
Senior deduction: the separate $6,000 deduction for people 65 and older is still in effect for 2027 (it runs 2025 through 2028)
Child Tax Credit: $2,300 per qualifying child, with up to $1,800 refundable (each up $100)
0% long-term capital gains rate: applies to taxable income up to $51,050 single and $102,100 joint
Annual gift exclusion: $20,000 per recipient (up from $19,000)
Health FSA limit: $3,500, with a $700 maximum carryover

What is not out yet: the IRS had not published the 2027 401(k) and IRA contribution limits as of November 10, 2026. Those usually arrive in a separate notice in November. Our 401(k) paycheck guide and 401(k) vs IRA comparison cover the current limits.

2027 federal income tax brackets by filing status

These figures come straight from Rev. Proc. 2026-35, section 3.01. Brackets apply to taxable income, which is your income after the standard or itemized deduction, not your salary.

Single filers

10%: $0 to $12,800
12%: $12,801 to $52,025
22%: $52,026 to $109,125
24%: $109,126 to $208,325
32%: $208,326 to $264,550
35%: $264,551 to $661,375
37%: over $661,375

Married filing jointly (and qualifying surviving spouses)

10%: $0 to $25,600
12%: $25,601 to $104,050
22%: $104,051 to $218,250
24%: $218,251 to $416,650
32%: $416,651 to $529,100
35%: $529,101 to $793,650
37%: over $793,650

Head of household

10%: $0 to $18,250
12%: $18,251 to $69,650
22%: $69,651 to $109,100
24%: $109,101 to $208,300
32%: $208,301 to $264,550
35%: $264,551 to $661,350
37%: over $661,350

Married filing separately

Same thresholds as single filers up to $264,550
35%: $264,551 to $396,825
37%: over $396,825

A quick pattern worth remembering: for the 10% through 32% brackets, the joint thresholds are exactly double the single thresholds. That “marriage penalty relief” stops at the 35% and 37% brackets, where the joint thresholds are less than double.

Green terraced rice fields stepping down a hillside, illustrating how marginal tax brackets fill one level at a time — Income fills the 10% tier first, then 12%, then 22%. Only the dollars on each step pay that step’s rate.

How tax brackets actually work (marginal vs effective rate)

The most common tax myth is that moving into a higher bracket makes all of your income taxed at the higher rate. It does not. The U.S. uses marginal brackets: each rate applies only to the slice of taxable income that falls inside that bracket.

Think of the brackets as buckets you fill in order:

The first $12,800 of a single filer’s taxable income is taxed at 10%
The next slice, up to $52,025, is taxed at 12%
Only the dollars above $52,025 are taxed at 22%, and so on

That gives you two different rates to track:

Marginal rate: the rate on your next dollar of taxable income. This is the number that matters for decisions like a raise, a bonus, a Roth conversion or a traditional 401(k) contribution
Effective rate: your total federal income tax divided by your income. It is always lower than your marginal rate, often by a lot

Rev. Proc. 2026-35 also gives the shortcut formula for each bracket. For a single filer with taxable income in the 22% bracket, the tax is $5,987 plus 22% of the amount over $52,025. For a married couple in the 22% bracket, it is $11,974 plus 22% of the amount over $104,050.

One more distinction: your tax bracket is not the same as your income bracket. If you want to know where your earnings rank against other U.S. households, use our U.S. income percentile calculator instead.

A raise never lowers your take-home pay because of the federal brackets alone. Some credits and deductions do phase out as income rises, which can create higher effective marginal rates in certain ranges, but the bracket system itself only taxes the new dollars at the new rate.

Worked examples: what 2027 tax looks like in real numbers

These examples assume wages are the only income, no pre-tax retirement contributions, and the standard deduction. They show federal income tax before credits; they ignore state tax and payroll taxes (Social Security and Medicare). For a rough AGI figure for your own situation, try our AGI calculator.

Example 1: single filer earning $75,000

Taxable income: $75,000 − $16,600 = $58,400
Tax: $5,987 + 22% × ($58,400 − $52,025) = $5,987 + $1,402.50 = $7,389.50
Effective rate on gross pay: about 9.9%. Marginal rate: 22%
Same salary in 2026: taxable income $58,900, tax $7,670. The 2027 inflation adjustments cut the bill by about $280

Example 2: married couple earning $150,000 combined

Taxable income: $150,000 − $33,200 = $116,800
Tax: $11,974 + 22% × ($116,800 − $104,050) = $11,974 + $2,805 = $14,779
Effective rate: about 9.9%. Marginal rate: 22%
Same income in 2026: tax $15,340, so about $561 less in 2027 before any credits
With two qualifying children, the Child Tax Credit could reduce the bill by up to $4,600 more ($2,300 each), subject to income phase-outs

Example 3: head of household earning $60,000

Taxable income: $60,000 − $24,925 = $35,075
Tax: $1,825 + 12% × ($35,075 − $18,250) = $1,825 + $2,019 = $3,844
Effective rate: about 6.4%. Marginal rate: 12%
Same income in 2026: tax $3,948

Example 4: what a $5,000 raise really costs a single filer at $75,000

The extra $5,000 sits entirely in the 22% bracket, so federal income tax rises by $1,100
The worker keeps $3,900 of the raise before payroll and state taxes. Nothing about the first $75,000 changes

If your income is irregular, the IRS Tax Withholding Estimator is the best free way to check whether your paycheck withholding matches these numbers once 2027 starts.

Three clear glasses of different sizes holding different amounts of water, a visual for marginal versus effective tax rates — Your marginal rate is the level in the last glass. Your effective rate is the average across all of them, and it is always lower.

The 2027 standard deduction (and who should itemize)

The standard deduction is the first thing subtracted from your income, so it decides how much income ever reaches the brackets. For 2027 (Rev. Proc. 2026-35, section 3.15):

Married filing jointly / qualifying surviving spouse: $33,200
Head of household: $24,925
Single or married filing separately: $16,600
Additional amount for age 65+ or blind: $1,700 per qualifying spouse if married, or $2,100 if unmarried and not a surviving spouse
Dependents: the greater of $1,400 or earned income plus $500 (capped at the regular amount)

You should only itemize if your deductible expenses beat those amounts. The higher cap on state and local taxes (SALT) makes itemizing more realistic for some homeowners in high-tax states:

Under the 2025 law, the SALT cap is $40,000 for 2025 and $40,400 for 2026, and the statute raises both the cap and its phase-down threshold by 1% a year for 2027 through 2029 before the cap drops back to $10,000 in 2030. That puts the 2027 cap at $40,804 ($20,402 married filing separately), per 26 U.S.C. § 164(b)
The cap shrinks by 30% of modified AGI above $510,050 in 2027 (101% of the 2026 threshold of $505,000), but never below $10,000
Mortgage interest, charitable gifts and large medical bills (above 7.5% of AGI) are the other common itemized deductions

Most households still take the standard deduction. If you are close to the line, “bunching” two years of charitable giving into one year can push you over it in alternate years.

New deductions that still apply in 2027

The 2025 law added several deductions that run from 2025 through 2028, so they are available for the 2027 tax year. They are claimed on Schedule 1-A, and you can take them whether or not you itemize. Per the IRS’s Working Families Tax Cuts guide for individuals:

Senior deduction: an extra $6,000 per person age 65 or older ($12,000 if both spouses qualify), on top of the regular age-65 standard deduction add-on. It phases out above modified AGI of $75,000 (single) or $150,000 (joint)
No tax on tips: up to $25,000 of qualified tips in occupations the IRS lists as customarily tipped. Phases out above $150,000 MAGI ($300,000 joint)
No tax on overtime: up to $12,500 ($25,000 joint) of the premium portion of FLSA-required overtime pay (the “half” in time-and-a-half). Same phase-out ranges as tips
Car loan interest: up to $10,000 of interest on a qualifying loan for a new, U.S.-assembled vehicle bought for personal use. Phases out above $100,000 MAGI ($200,000 joint), and you must report the vehicle’s VIN (IRS Schedule 1-A overview)

The senior, tip and overtime deductions require a valid Social Security number, and married couples must file jointly to claim them. The car loan deduction instead requires the vehicle’s VIN on your return.

What the 2027 brackets mean for retirees

Retirees often have more control over their taxable income than workers do, which makes the brackets especially useful for planning.

Example 5: married couple, both 65+, with $90,000 of income that counts toward AGI

Deductions: $33,200 standard + 2 × $1,700 age add-on + $12,000 senior deduction = $48,600
Taxable income: $90,000 − $48,600 = $41,400
Tax: $2,560 + 12% × ($41,400 − $25,600) = $4,456, an effective rate of about 5%
They have about $62,650 of room left in the 12% bracket before hitting 22%

That leftover room is where planning happens:

Roth conversions: converting just enough each year to “fill” the 12% or 22% bracket can lower taxes on future required minimum distributions
Claiming age: delaying benefits past your full retirement age can keep taxable income lower in your early 60s, leaving more bracket room for conversions
Social Security: up to 85% of benefits can become taxable as other income rises. The 2027 raise from the 3.6% Social Security COLA adds a little to that income figure
Capital gains harvesting: a couple whose taxable income stays at or below $102,100 in 2027 pays 0% federal tax on long-term gains in that range
Withdrawal order: our guide to why the 4% rule may not be enough covers how taxes change sustainable withdrawal rates

Empty wooden rocking chair on a porch at golden hour, representing tax planning room for retirees in 2027 — Bigger deductions for people 65 and older leave many retirees room in the 12% bracket for Roth conversions or 0% gains.

2027 capital gains thresholds (quick reference)

Long-term capital gains and qualified dividends use their own 0%, 15% and 20% rates, but the thresholds are based on the same taxable income. From Rev. Proc. 2026-35, section 3.03:

Single: 0% up to $51,050; 15% up to $563,200; 20% above
Married filing jointly: 0% up to $102,100; 15% up to $633,600; 20% above
Head of household: 0% up to $68,350; 15% up to $598,400; 20% above
Married filing separately: 0% up to $51,050; 15% up to $316,800; 20% above

The 3.8% Net Investment Income Tax can still apply above $200,000 of modified AGI (single) or $250,000 (joint), and those thresholds are not indexed. For how gains “stack” on top of wages, holding-period rules and harvesting strategies, see our full guide to capital gains tax brackets.

Six ways to lower the bracket your next dollar lands in

The brackets themselves are fixed, but you control a lot of what counts as taxable income. These are the most common legal levers:

Traditional 401(k), 403(b) or 457 contributions: each pre-tax dollar comes off the top at your marginal rate. A 22% filer saves $220 in federal tax for every $1,000 deferred
HSA contributions: if you have a qualifying high-deductible plan, the 2027 HSA limits are $4,500 (self-only) and $9,000 (family), and they are deductible even if you don’t itemize. See our HSA contribution limits guide and HSA vs FSA comparison
Traditional vs Roth choice: pre-tax contributions win when your rate today is higher than you expect in retirement; Roth wins when it is lower. Our Roth vs Traditional IRA guide walks through it, and the Roth IRA income limits decide whether you can contribute directly
Tax-efficient investing in taxable accounts: broad index funds and ETFs tend to distribute fewer capital gains. Our index fund vs ETF guide covers the tax differences
Timing income and deductions: if a bonus, stock sale or Roth conversion is flexible, putting it in a lower-income year can keep more of it in a lower bracket
Municipal bonds for high earners: compare yields on an after-tax basis with our tax-equivalent yield calculator

None of these is right for everyone. Model the trade-offs, and if your situation is complicated (business income, equity compensation, large one-time gains), a CPA or enrolled agent can be worth the fee.

When the 2027 brackets actually apply

This is the part that trips up a lot of people searching right now:

Filing in early 2027? You are filing your 2026 return, so you use the 2026 brackets (single 22% bracket starts at $50,400; standard deduction $16,100). Those are in IRS Rev. Proc. 2025-32
The 2027 brackets apply to income earned from January 1 to December 31, 2027, and you report it on the return you file by mid-April 2028
Paychecks: employers start withholding under the 2027 tables in January 2027, so many workers will see slightly higher take-home pay early in the year. Review your Form W-4 after any job, marriage or baby change
Estimated payments: freelancers and retirees who pay quarterly can use the 2027 brackets for their 2027 estimates starting with the April 2027 payment

Frequently asked questions

What are the 2027 federal income tax brackets?

The seven rates are 10%, 12%, 22%, 24%, 32%, 35% and 37%. For single filers, they apply at taxable income above $0, $12,800, $52,025, $109,125, $208,325, $264,550 and $661,375. For married couples filing jointly, the starting points are $0, $25,600, $104,050, $218,250, $416,650, $529,100 and $793,650. The source is IRS Rev. Proc. 2026-35.

What is the standard deduction for 2027?

$16,600 for single filers and married filing separately, $33,200 for married couples filing jointly, and $24,925 for heads of household. People 65 or older or blind add $1,700 each if married, or $2,100 if unmarried, and many seniors can also claim the separate $6,000 senior deduction.

Did the 2027 tax rates change?

No. The rates are the same as in 2026. Only the income thresholds moved, rising about 3.2% for inflation. The 2025 tax law made the current seven-rate structure permanent, so there was no scheduled return to the older, higher rates.

Will I pay less tax in 2027 than in 2026?

If your income stays the same, usually yes, by a modest amount. Because the thresholds and standard deduction rise, a single filer earning $75,000 pays about $280 less federal income tax in 2027 than in 2026. If your raise outpaces inflation, your bill can still go up.

Does moving into a higher tax bracket mean all my income is taxed more?

No. Only the dollars above each threshold are taxed at the higher rate. A single filer who crosses from 12% into 22% pays 22% only on the income above $52,025 of taxable income in 2027. Your effective rate rises gradually.

When do I use the 2027 tax brackets?

For income earned during calendar year 2027, reported on the return you file in early 2028. The return you file in early 2027 covers 2026 income and uses the 2026 brackets.

What is the 0% capital gains bracket for 2027?

Long-term capital gains and qualified dividends are taxed at 0% when they fall within taxable income up to $51,050 for single filers, $102,100 for married couples filing jointly and $68,350 for heads of household.

Have the 2027 401(k) and IRA limits been announced?

Not as of November 10, 2026. The IRS publishes retirement plan limits in a separate notice, which in recent years has come out in early-to-mid November. The 2026 limits are $24,500 for 401(k) deferrals and $7,500 for IRAs. We will update our retirement guides when the 2027 figures are official.

Bottom line

The 2027 tax brackets keep the same seven rates and lift every threshold about 3.2%, so most people with steady income will owe slightly less federal tax for the same pay. The numbers to remember are the $16,600 / $33,200 / $24,925 standard deductions and where your filing status crosses from 12% into 22% ($52,025 single, $104,050 joint). Then use the levers you control (pre-tax savings, HSA contributions, Roth timing and gain harvesting) to decide which bracket your next dollar lands in.

This article is general education for U.S. taxpayers and is not personalized tax, legal or investment advice. Figures are federal, verified against IRS IR-2026-133 and Rev. Proc. 2026-35 (November 5, 2026), Rev. Proc. 2025-32, IRS guidance on the Working Families Tax Cuts, Rev. Proc. 2026-24 and 26 U.S.C. § 164 as of November 10, 2026, and can change. Confirm your own situation with IRS guidance or a qualified tax professional.

Sources (checked 2026-11-10)

IRS IR-2026-133: tax inflation adjustments for tax year 2027 (Nov. 5, 2026)
IRS Revenue Procedure 2026-35 (PDF): brackets §3.01, capital gains §3.03, Child Tax Credit §3.05, standard deduction §3.15
IRS Revenue Procedure 2025-32 (PDF): 2026 figures used for comparison
IRS: Working Families Tax Cuts, individuals and workers
IRS: Schedule 1-A additional deductions
IRS Revenue Procedure 2026-24 (PDF): 2027 HSA contribution limits
26 U.S.C. § 164 (SALT cap), Cornell LII
Tax Foundation: 2027 tax brackets

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2027 Tax Brackets: The New IRS Income Tax Rates, Standard Deduction and What They Mean for Your Paycheck