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2027 Tax Brackets Are Out: The IRS’s New Numbers and What They Do to Your Paycheck
The IRS released the 2027 tax brackets on November 5, 2026, and the news is good for most paychecks — not because tax rates fell, but because every income threshold moved up. The seven federal rates stay exactly where they are, 10% to 37%, while the standard deduction rises to $16,600 for single filers and $33,200 for married couples filing jointly. Here are the full 2027 tax brackets, the new standard deduction, and what the changes actually do to your paycheck.
One thing to get straight first: these are the numbers for income you earn in 2027, which goes on the tax return you file in early 2028. The return you file in early 2027 covers 2026 income and still uses the 2026 brackets. Everything below comes from the IRS itself — Revenue Procedure 2026-35, announced in news release IR-2026-133.
What are the 2027 tax brackets?
Federal income tax works in slices. Only the income inside each bracket is taxed at that bracket’s rate — being “in the 22% bracket” never means all of your income is taxed at 22%. These are taxable income figures, meaning income after your standard deduction or itemized deductions.
Single filers, 2027:
| Rate | Taxable income |
|---|---|
| 10% | Up to $12,800 |
| 12% | $12,800 to $52,025 |
| 22% | $52,025 to $109,125 |
| 24% | $109,125 to $208,325 |
| 32% | $208,325 to $264,550 |
| 35% | $264,550 to $661,375 |
| 37% | Over $661,375 |
Married filing jointly, 2027:
| Rate | Taxable income |
|---|---|
| 10% | Up to $25,600 |
| 12% | $25,600 to $104,050 |
| 22% | $104,050 to $218,250 |
| 24% | $218,250 to $416,650 |
| 32% | $416,650 to $529,100 |
| 35% | $529,100 to $793,650 |
| 37% | Over $793,650 |
Heads of household sit between the two: the 10% rate runs to $18,250, the 12% rate to $69,650, and the 37% rate starts above $661,350. Married couples filing separately use the single filer’s thresholds, except the 37% rate, which starts above $396,825.
Compared with 2026, every threshold is about 3% higher — the IRS’s annual inflation adjustment, designed to stop “bracket creep,” where a pay raise that only keeps up with inflation pushes more of your income into a higher bracket. The rates themselves did not change: the One Big Beautiful Bill Act made the seven rates permanent.
The 2027 standard deduction
The standard deduction is the chunk of your income the IRS does not tax at all, and most people take it instead of itemizing. For 2027 it rises for every filing status:
| Filing status | 2026 | 2027 | Increase |
|---|---|---|---|
| Single / married filing separately | $16,100 | $16,600 | +$500 |
| Married filing jointly | $32,200 | $33,200 | +$1,000 |
| Head of household | $24,150 | $24,925 | +$775 |
If you are 65 or older, or blind, you add $1,700 to your standard deduction in 2027 if you are married, or $2,100 if you are unmarried and not a surviving spouse (up from $1,650 and $2,050 in 2026). These amounts are also from Revenue Procedure 2026-35.
What the new numbers do to your paycheck
A wider bracket plus a bigger standard deduction means a little less federal income tax on the same income — not a windfall, but real money. Two labelled examples, worked out on taxable income only and before any credits:
Example 1 — single filer, $60,000 of taxable income. Under the 2027 brackets: 10% of $12,800 is $1,280; 12% of the next $39,225 (up to $52,025) is $4,707; 22% of the remaining $7,975 is $1,754.50. Total: $7,741.50. Under the 2026 brackets the same income cost $7,912 — about $170 less in 2027.
Example 2 — married couple filing jointly, $120,000 of taxable income. Under the 2027 brackets: 10% of $25,600 is $2,560; 12% of the next $78,450 is $9,414; 22% of the remaining $15,950 is $3,509. Total: $15,483. Under the 2026 brackets it was $15,824 — $341 less in 2027.
Two honest caveats. First, these examples ignore credits, state tax, and payroll taxes, so your own result will differ. Second, your paycheck will not jump the day the IRS publishes the numbers: employers use the IRS withholding tables for 2027, which are published in December, so the adjustment shows up in your early-2027 paychecks on its own. If your pay or family situation changed this year, January is the right time to check your W-4 — a new withholding check beats a surprise at tax time.
Other 2027 numbers worth knowing
The same IRS release set a few more figures that matter to families:
- Child Tax Credit: up to $2,300 per qualifying child for 2027, of which up to $1,800 can be refundable — money back even if you owe no tax.
- Capital gains: the 0% rate on long-term gains applies to taxable income up to $51,050 for single filers and $102,100 for married couples filing jointly.
- Gift tax: you can give up to $20,000 per person per year in 2027 without it counting against your lifetime gift-tax exemption.
What to do with these numbers now
Nothing in the 2027 figures requires urgent action before December 31 — they are next year’s numbers. But three small moves are worth making while the announcement is fresh:
- Do not mix up the tax years. The return you file in early 2027 still uses the 2026 brackets and the $16,100 / $32,200 standard deduction. The 2027 numbers only matter for income you earn from January 1, 2027 onward.
- If you buy health insurance on the marketplace, your income estimate matters twice. The premium tax credit is based on your 2027 income, so the same pay raise that moves you through the new brackets can also change your subsidy. See our guide to ACA open enrollment for 2027 before you lock in a plan — and remember, you must enroll by December 15 for coverage starting January 1.
- Put the saving on autopilot. A few hundred dollars a year is easy to spend and hard to notice. If your take-home pay rises slightly in January, routing that difference into savings before you get used to it is the simplest version of our 15 money-saving habits for US households.
The 2027 tax brackets are not a tax cut — nobody’s rate went down. They are the system doing what it is supposed to do: adjusting for inflation so a cost-of-living raise does not quietly become a tax increase. Knowing the new thresholds now means no surprises when the first 2027 paychecks land.
Frequently asked questions
What are the 2027 tax brackets?
The seven federal rates stay the same for 2027: 10%, 12%, 22%, 24%, 32%, 35% and 37%. For a single filer, the 10% rate applies up to $12,800 of taxable income and the 37% rate above $661,375. For married couples filing jointly, the 10% rate applies up to $25,600 and the 37% rate above $793,650. The IRS published the figures on November 5, 2026, in Revenue Procedure 2026-35.
What is the standard deduction for 2027?
$16,600 for single filers and married filing separately (up $500), $33,200 for married couples filing jointly (up $1,000), and $24,925 for heads of household (up $775). If you are 65 or older or blind, add $1,700 if married or $2,100 if unmarried.
Do the 2027 tax brackets change the taxes I file in 2027?
No. The return you file in early 2027 covers 2026 income and uses the 2026 brackets. The 2027 tax brackets apply to income you earn during 2027, reported on the return you file in early 2028.
Will my paycheck change in January 2027?
Probably slightly, if your income is similar. Employers switch to the IRS’s 2027 withholding tables, which are published in December, so any change from the wider brackets and the bigger standard deduction shows up in your early-2027 paychecks automatically.
This article is general information, not tax advice. Tax rules change and your situation is your own — verify the figures at irs.gov or talk to a qualified tax professional before making decisions based on them.
