Nov. 6, 2026

IRS 2027 Tax Year Inflation Adjustments Announced

The Internal Revenue Service has announced the tax year 2027 annual inflation adjustment.

Standard Deduction. For tax year 2027, the standard deduction increases to:

$33,200 for married couples filing jointly, up $1,000 from 2026.
$16,600 for single taxpayers and married individuals filing separately, and
$24,925 for heads of households.

Marginal Rates: For tax year 2027, the top tax rate remains 37% for individual single taxpayers with incomes greater than $661,375 ($793,650 for married couples filing jointly).

The other rates are:

35% for incomes over $264,550 ($529,100 for married couples filing jointly);
32% for incomes over $208,325 ($416,650 for married couples filing jointly);
24% for incomes over $109,125 ($218,250 for married couples filing jointly);
22% for incomes over $52,025 ($104,050 for married couples filing jointly);
12% for incomes over $12,800 ($25,600 for married couples filing jointly); and
10% for incomes of single individuals with incomes of $12,800 or less ($25,600 for married couples filing jointly).

Revenue Procedure 2026-35 provides more details about these annual adjustments.

(IR-2026-133, Nov. 05, 2026).

Source

IRS News Withholding Reporting News

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