The standard deduction for 2027 will be $33,200 for married couples filing jointly and $16,600 for single filers, the IRS said Thursday as it released its yearly inflation adjustments for almost 70 tax provisions. Heads of household get $24,925. These numbers apply to income earned in 2027, which most people will report on returns filed in 2028, not to the return due next spring.
That is $1,000 more than the 2026 deduction for joint filers and $500 more for singles, according to Revenue Procedure 2025-32, which set this year's amounts. Heads of household gain $775.
The 2027 tax brackets
The seven rates, from 10% to 37%, stay the same, while the income level where each one starts moves up. Here is the taxable income above which each rate starts in 2027 and 2026, from Revenue Procedure 2026-35 and last year's version.
Single filers:
| Rate | 2027, income over | 2026, income over |
|---|---|---|
| 10% | $0 | $0 |
| 12% | $12,800 | $12,400 |
| 22% | $52,025 | $50,400 |
| 24% | $109,125 | $105,700 |
| 32% | $208,325 | $201,775 |
| 35% | $264,550 | $256,225 |
| 37% | $661,375 | $640,600 |
Married couples filing jointly:
| Rate | 2027, income over | 2026, income over |
|---|---|---|
| 10% | $0 | $0 |
| 12% | $25,600 | $24,800 |
| 22% | $104,050 | $100,800 |
| 24% | $218,250 | $211,400 |
| 32% | $416,650 | $403,550 |
| 35% | $529,100 | $512,450 |
| 37% | $793,650 | $768,700 |
Each threshold rose about 3.2% for both groups. A raise that only keeps up with inflation is therefore less likely to push part of your pay into a higher bracket.
Long-term capital gains and qualified dividends are taxed at 0%, 15% or 20%, depending on taxable income, and those cutoffs rise too. For 2027, a single filer pays 0% on gains up to $51,050 of taxable income, up from $49,450 this year, and 15% up to $563,200, up from $545,500. Above that, the rate is 20%.
For married couples filing jointly, the 0% rate reaches $102,100, up from $98,900, and the 15% rate reaches $633,600, up from $613,700. Heads of household get $68,350 and $598,400.
Other amounts that change in 2027
- Child tax credit: up to $2,300 per child, $100 more than 2026, with up to $1,800 refundable.
- Older and blind filers: the extra standard deduction is $1,700, or $2,100 for unmarried filers who are not surviving spouses.
- Earned income tax credit: up to $8,496 for workers with three or more qualifying children, up from $8,231.
- Health flexible spending accounts: employees can put in up to $3,500, $100 more than 2026, and plans that allow carryovers can roll over up to $700.
- Commuter benefits: the monthly limit for transit passes and work parking rises to $350.
The annual gift exclusion rises to $20,000 per recipient, up from $19,000, so you can give that much to any one person in 2027 without it counting toward taxable gifts. The estate tax basic exclusion goes to $15,480,000 for people who die in 2027, up from $15,000,000. Families adopting a child can claim a credit for up to $18,250 in qualified expenses, with up to $5,280 of it refundable.
Some amounts do not change. Personal exemptions stay at zero, and the income range where the Lifetime Learning Credit phases out is still $80,000 to $90,000 for single filers and $160,000 to $180,000 for joint returns, because the law does not index it.
