IRS Announces Adjusted Federal Income Tax Brackets and Standard Deductions for 2027
The Internal Revenue Service (IRS) has released updated federal income tax brackets and standard deduction amounts for the 2027 tax year. These adjustments, which will apply to returns filed in 2028, are designed to account for inflation based on the consumer price index. The changes include increased thresholds across all seven tax tiers, ranging from 10% to a top rate of 37%. In addition to income bracket shifts, the IRS is raising the standard deduction to $33,200 for married couples filing jointly and $16,600 for single taxpayers. The announcement also includes adjustments to long-term capital gains brackets, estate and gift tax exemptions, and earned income tax credit eligibility. These updates come as consumers face ongoing affordability challenges driven by rising costs in housing, groceries, and fuel.