The IRS released the official 2027 tax brackets, and every single one of them went up. That means you can earn more next year and pay less tax on the same paycheck. It’s automatic. You don’t have to do anything.
A single person making $75,000 saves about $280. A married couple making $150,000 saves about $560. The worked examples later in this article show $280.50 and $561.
These numbers are for tax year 2027: the money you earn from January to December 2027, and the return you file in early 2028. For the return you file next spring, the 2026 numbers still apply.
Why these adjustments exist
Every fall the IRS adjusts about 70 tax numbers for inflation. On November 5, 2026, it released the 2027 numbers in Revenue Procedure 2026-35.
Without these adjustments, a raise that just keeps up with inflation would push you into a higher bracket. That’s called bracket creep, and this is the IRS’s fix for it.
The 2027 standard deduction
The standard deduction is the chunk of income you pay zero federal income tax on, and most people take it instead of itemizing.
| Filing status | 2026 | 2027 | Change |
|---|---|---|---|
| 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’re single, your first $16,600 is tax-free. Married filing jointly, it’s $33,200. Head of household, $24,925.
For a couple, that extra $1,000 alone, in the 12% bracket, is $120 back in your pocket. In the 22% bracket, it’s $220.
If you’re 65 or older, the IRS release says the senior deduction is separate from these numbers.
The rates didn’t change. The starting lines did.
The rates themselves did not change. It’s still seven: 10, 12, 22, 24, 32, 35, and 37 percent. What changed is where each one starts. Every threshold moved up about 3.2%.
These are taxable income numbers, meaning after your standard deduction.
Single filers
| Rate | 2026: income over | 2027: income over |
|---|---|---|
| 10% | $0 | $0 |
| 12% | $12,400 | $12,800 |
| 22% | $50,400 | $52,025 |
| 24% | $105,700 | $109,125 |
| 32% | $201,775 | $208,325 |
| 35% | $256,225 | $264,550 |
| 37% | $640,600 | $661,375 |
For single filers, the 22% bracket now starts at $52,025 instead of $50,400. The top 37% rate doesn’t kick in until $661,375.
Married filing jointly
| Rate | 2026: income over | 2027: income over |
|---|---|---|
| 10% | $0 | $0 |
| 12% | $24,800 | $25,600 |
| 22% | $100,800 | $104,050 |
| 24% | $211,400 | $218,250 |
| 32% | $403,550 | $416,650 |
| 35% | $512,450 | $529,100 |
| 37% | $768,700 | $793,650 |
For married couples, the 22% bracket starts at $104,050, and you don’t hit 37% until $793,650.
The mistake: “I’m in the 22% bracket”
People see “I’m in the 22% bracket” and think 22% of everything they make goes to the IRS. That’s wrong, and it’s why people turn down raises or overtime.
Brackets work like buckets. Your first dollars fill the 10% bucket, then the 12% bucket, and only the dollars above that line get taxed at 22%.
These examples are simplified: wages only, the standard deduction, and no credits or other income. Real returns have credits and other income, so your number will be different. But this is how the math works.
Example 1: single, $75,000 salary
- Salary $75,000 minus the $16,600 standard deduction = taxable income $58,400
- First $12,800 at 10% = $1,280
- Next $39,225 (up to $52,025) at 12% = $4,707
- Last $6,375 at 22% = $1,402.50
- Total 2027 federal income tax = $7,389.50
She’s “in the 22% bracket,” but her tax is about 9.9% of her salary, not 22%. If she’d multiplied 22% by her taxable income, she’d have guessed $12,848. That’s $5,400 too high.
Same salary under the 2026 numbers? $7,670. So 2027 saves her $280.50.
Example 2: married filing jointly, $150,000 combined
- $150,000 minus $33,200 = taxable income $116,800
- First $25,600 at 10% = $2,560
- Next $78,450 (up to $104,050) at 12% = $9,414
- Last $12,750 at 22% = $2,805
- Total 2027 tax = $14,779
Under 2026 rules it would be $15,340. That’s $561 saved for doing nothing.
Other 2027 changes from the same release
| Item | 2026 | 2027 |
|---|---|---|
| Child tax credit (max per child) | $2,200 | $2,300 ($1,800 refundable) |
| Earned income credit (max, 3+ kids) | $8,231 | $8,496 |
| Health FSA contribution limit | $3,400 | $3,500 |
| Annual gift exclusion | $19,000 | $20,000 |
| Estate tax exclusion | $15,000,000 | $15,480,000 |
| AMT exemption (single / joint) | $90,100 / $140,200 | $93,000 / $144,700 |
| Adoption credit (max) | $17,670 | $18,250 |
Parents get an extra $100 per child. The gift exclusion hits a round $20,000, so you can give anyone up to $20,000 next year without filing a gift tax return.
One thing that is not in this release: the 2027 401(k) and IRA limits. The IRS hadn’t released those yet when this video was published.
What to do with these numbers
Don’t fear the raise. Moving into a higher bracket only taxes the extra dollars at the higher rate. A raise always leaves you with more money.
Check your withholding in January. Employers update payroll tables for 2027, so your paycheck may go up slightly. Look at your first 2027 pay stub. If you owed last year, use the IRS Tax Withholding Estimator.
Plan the big moves around the new lines. If you’re near the top of a bracket, a Roth conversion, a side-business expense, or a bigger 401(k) contribution can be timed around these thresholds. Know where your line is.
And again: none of this changes the return you file next spring. That one still uses 2026 numbers.