2027 tax year: new income brackets and standard deduction announced

The brackets determine the tax rate applied to different portions of an individual’s taxable income, which is calculated after deductions.

For single filers, the highest tax bracket of 37% applies to incomes exceeding $661,375. Married couples filing jointly will enter that bracket with incomes above $793,650.

The 35% bracket begins at $264,550 for single filers and $529,100 for married couples. The 32% bracket starts at $208,325 for single filers and $416,650 for married couples. The 24% bracket begins at $109,125 for single filers and $218,250 for married couples. The 22% bracket begins at $52,025 for single filers and $104,050 for married couples. The 12% bracket begins at $12,800 for single filers and $25,600 for married couples. The 10% bracket applies to incomes of $12,800 or less for single filers, and $25,600 or less for married couples.

Alongside the updated brackets, the standard deduction is also increasing. Married couples filing jointly will see a standard deduction of $33,200, an increase from $32,200 in 2026. Single filers can claim a standard deduction of $16,600, up from $16,100.

The announcements arrive as inflation continues to impact household budgets. The Consumer Price Index rose 3.7% in September 2026 compared to the previous year, according to data released by the Bureau of Labor Statistics.