IRS reveals 2027 tax brackets. Find yours here
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The Internal Revenue Service unveiled new federal income tax bracket thresholds for 2027 on Thursday.
Why it matters: The higher thresholds help protect Americans from paying more in federal income taxes simply because their wages have risen with inflation.
Driving the news: The IRS said the seven federal income tax rates will remain unchanged in 2027, ranging from 10% to 37%, while the income thresholds for each bracket will rise.
- Standard deductions will climb to $16,600 for single filers and $33,200 for married couples filing jointly, up by $500 and $1,000 from 2026, respectively.
- For heads of households, the standard deduction will be $24,925.
- The IRS said the maximum child tax credit for 2027 is $2,300, an increase of $100 from 2026.
The big picture: Annual adjustments are designed to prevent "bracket creep," when inflation pushes taxpayers into higher tax brackets without increasing their purchasing power.
The fine print: Tax brackets apply to taxable income after deductions, with each rate applying only to income within that bracket. The 2027 figures apply to tax returns filed in 2028.
