IRS 2027 tax brackets standard deduction $16,600 single $33,200 joint

IRS 2027 Tax Brackets Are Out: Standard Deduction Hits $16,600 Single and $33,200 Joint

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The IRS has released the tax numbers for 2027, and the headline is a bigger standard deduction. For tax year 2027, the standard deduction rises to $16,600 for single filers, $33,200 for married couples filing jointly, and $24,925 for heads of household.

The IRS published the figures on November 5, 2026, in news release IR-2026-133 and Revenue Procedure 2026-35. The seven tax rates do not change — they stay at 10%, 12%, 22%, 24%, 32%, 35% and 37% — but every bracket gets wider, so more of your income is taxed at a lower rate.

Read this first: these are NOT the numbers for the return you file in April 2027

This is the trap most coverage skips, so let us be blunt. The 2027 figures apply to income you earn in 2027, which you report on the return you file in 2028.

The return due April 15, 2027 still uses the 2026 numbers: a $16,100 standard deduction for single filers and $32,200 for joint filers. If you plug $16,600 into your 2026 return, you will overstate your deduction. Your employer’s payroll will switch to the 2027 figures in January 2027, so the effect shows up in your paycheck first — but your tax return lags a year behind.

The 2027 brackets at a glance

For single filers, the 2027 brackets on taxable income are: 10% up to $12,800; 12% above $12,800; 22% above $52,025; 24% above $109,125; 32% above $208,325; 35% above $264,550; and 37% above $661,375.

For married couples filing jointly, the thresholds roughly double: 10% up to $25,600; 12% above $25,600; 22% above $104,050; 24% above $218,250; 32% above $416,650; 35% above $529,100; and 37% above $793,650.

The increases run about 3.1% to 3.3% over 2026. That is the inflation adjustment doing its job: without it, a pay raise that only keeps up with prices would quietly push you into a higher bracket. The adjustment is based on chained CPI, the inflation measure the tax code uses.

What it means for a typical paycheck

Take a single filer earning $70,000 in 2027 who takes the standard deduction. Taxable income is $70,000 minus $16,600, or $53,400.

The tax works out to $1,280 on the first $12,800 at 10%, plus $4,707 on the slice from $12,800 to $52,025 at 12%, plus $302.50 on the last $1,375 at 22%. Total federal income tax: about $6,290, an effective rate of roughly 9%.

The same $70,000 in 2026, with the $16,100 standard deduction and narrower brackets, would owe about $6,570. The 2027 numbers save that filer roughly $281 — not a windfall, but real money, and it arrives automatically through withholding rather than a refund check.

The bigger point is what the brackets do not do. Moving into the 22% bracket does not mean all your income is taxed at 22%. Only the dollars inside each bracket pay that bracket’s rate, which is why the effective rate stays far below the marginal rate for most people.

Families get more too

The child tax credit rises to $2,300 per child under 17 in 2027, up $100 from $2,200, and up to $1,800 of it is refundable, up from $1,700. That refundable part matters most: it is money you can get back even if you owe no tax.

The earned income tax credit also grows. The maximum EITC for 2027 is $8,496 for workers with three or more qualifying children, up from $8,231 in 2026. Smaller maximums apply with fewer children, and the credit phases out as income rises.

The $6,000 senior deduction is separate — do not add it to the standard deduction

If you are 65 or older, there is a second, separate deduction to know about. The Working Families Tax Cuts law added a $6,000 deduction for taxpayers 65 and older, available for tax years 2025 through 2028. It is not part of the standard deduction and it is not indexed for inflation, so it stays $6,000.

It phases out once modified adjusted gross income passes $75,000 for single filers or $150,000 for joint filers, shrinking by 6% of the excess until it disappears at $175,000 single or $250,000 joint. Both spouses can claim it, for $12,000, but only if you file jointly. And it is available whether you itemize or take the standard deduction.

Do not confuse it with the additional standard deduction for age or blindness, which is a different amount: $1,700 per qualifying married person or $2,100 for an unmarried filer in 2027.

What is still missing: your 401(k) limit

One number is conspicuously absent. The IRS release does not include the 2027 retirement-plan limits, and as of November 9 the IRS has not announced them. The 401(k), 403(b) and IRA limits come in a separate notice, usually in mid-November — last year it arrived November 13.

Actuarial firm Milliman projects the 2027 401(k) deferral limit at $25,500, up from $24,500, with the age-50 catch-up rising to $8,500. That is a projection, not an IRS figure, so do not set your 2027 payroll deferral on it. Until the notice lands, the official limits are still the 2026 ones: $24,500 for a 401(k) and $7,500 for an IRA.

A few other 2027 figures from the same release: the estate tax exclusion rises to $15,480,000, the annual gift exclusion rises to $20,000 per recipient, the alternative minimum tax exemption is $93,000 single and $144,700 joint, and the health flexible spending account limit rises to $3,500 with a $700 carryover.

The bottom line for your planning

The 2027 numbers are modestly good news for almost every filer: a bigger standard deduction, wider brackets, a larger child tax credit and a larger EITC. None of it changes the return you file this spring. But if you are setting withholding, planning a bonus, or deciding how much to put in a retirement account, these are the numbers your 2027 paycheck will actually use.

FAQ: IRS 2027 tax brackets

When do the 2027 tax brackets take effect?
They apply to income earned in calendar year 2027, reported on the return you file in 2028. Your employer’s withholding switches to them in January 2027.

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.

Did the tax rates change for 2027?
No. The seven rates stay at 10%, 12%, 22%, 24%, 32%, 35% and 37%. Only the income thresholds and deduction amounts moved.

What is the child tax credit for 2027?
$2,300 per qualifying child under 17, up from $2,200, with up to $1,800 refundable, up from $1,700.

Has the IRS announced the 2027 401(k) limit?
Not yet, as of November 9, 2026. It comes in a separate notice, expected in mid-November. Milliman projects $25,500, but that is a projection, not an official figure.

Do I use the 2027 numbers on the tax return I file in April 2027?
No. That return covers tax year 2026, so it uses the 2026 figures: $16,100 single and $32,200 joint standard deduction, and a $2,200 child tax credit.

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