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Here Are the Federal Income Tax Brackets for 2027
See how much you’ll owe Uncle Sam
3-minute read
Higher income limits and a larger standard deduction could lower your federal tax bill for 2027.
Rauf Karimov/Getty Images
Key takeaways
- The 2027 brackets apply to income you report on the tax return you file in 2028.
- Moving into a higher bracket does not mean you pay a higher rate on all of your income.
- Eligible adults 65 and older can claim extra deductions, including a deduction of up to $6,000 per person.
The IRS released its federal income tax brackets for 2027 on Nov. 5. If your income stays the same, the changes could mean a smaller tax bill.
The seven federal tax rates aren’t changing, but more of your income could fall into the lower brackets in 2027. In addition, the standard deduction — the amount you can deduct on your 1040 tax return without itemizing — is going up.
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These changes apply to your 2027 income, which you’ll report on the return you file in 2028. They don’t affect your 2026 tax return — the one due in April 2027.
How the federal income tax brackets work
A tax bracket tells you the rate you pay on a portion of your taxable income. That’s the income left after deductions. The seven federal rates are 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent.
You don’t pay the highest rate on every dollar. Say you’re single and have $60,000 in taxable income in 2027. You’ll pay 10 percent on the first $12,800, then 12 percent on the portion from $12,801 to $52,025. Only the remaining $7,975 falls into the 22 percent bracket.
A higher standard deduction for 2027
The standard deduction is a set amount you can subtract from your federal income before calculating your taxes. You can take it instead of claiming individual deductions on your return, a process called itemizing.
For 2027, the standard deduction is:
- $16,600 for single filers and married people filing separately, up $500 from 2026.
- $33,200 for married couples filing jointly, up $1,000 from 2026.
- $24,925 for heads of household, up $775 from 2026.
Here’s what that means: If you’re married and filing jointly with $80,000 in adjusted gross income, subtracting the $33,200 standard deduction leaves $46,800 subject to federal income tax. Above-the-line deductions — tax breaks you can claim whether or not you itemize — could reduce that amount further, depending on your eligibility.
The standard deduction reduces your taxable income; it’s not a tax credit, which provides a dollar-for-dollar reduction to your tax bill.
Before choosing the standard deduction, add up the expenses you could itemize, such as eligible mortgage interest, up to $40,804 in state and local taxes you pay in 2027, and unreimbursed medical and dental expenses that exceed 7.5 percent of your adjusted gross income (AGI). Itemizing generally makes sense when itemized deductions exceed your standard deduction.
Extra deductions for taxpayers 65 and older
People 65 and older get a larger standard deduction. In 2027, a single filer can add $2,100, bringing the total to $18,700. Married couples filing jointly can add $1,700 for each spouse who is 65 or older. If both qualify, their standard deduction totals $36,600.
There’s also a separate deduction of up to $6,000 per eligible person age 65 or older, available through 2028 under the One Big Beautiful Bill Act. Married couples filing jointly can deduct up to $12,000 if both spouses qualify. You can claim it whether you take the standard deduction or itemize.
This deduction starts to shrink when your modified adjusted gross income (MAGI) — your AGI minus certain deductions, such as IRA contributions — exceeds $75,000 for an individual or $150,000 for a joint return. Married taxpayers must file jointly to claim it.
What the 2027 tax brackets mean for retirement income
The new tax rates also apply to the taxable portion of withdrawals from traditional IRAs and 401(k)s, along with taxable pension income. Some of your Social Security benefits may count as taxable income, depending on your other income and filing status.
That means the higher bracket limits can help retirees, too. If your taxable retirement income stays the same, more of it can fall into the lower brackets.
To avoid a surprise bill at filing time, check how much federal income tax comes out of your paycheck or pension. The IRS’s free withholding estimator can help you decide whether to change your withholding.
Having more withheld won’t reduce your total taxes for the year, but it spreads out the payments so that you’re not hit with a big tax bill in the spring.
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