Key Things to Know About 2027 Income Tax Brackets

Learn more about 2027 income tax brackets and rates.

Key takeaways

• Identify your 2027 federal income tax bracket using taxable income and filing status.
• Understand progressive taxes so you know how different income blocks are taxed.
• Factor in higher standard deductions at age 65 to lower taxable income.

Summary

2027 federal income tax brackets determine how portions of your taxable income are taxed, making it important to know your filing status and the applicable income cutoffs. Start with the rough bracket ranges, then look up the exact numbers that correspond with your income and whether you file as single or married filing jointly.

Because federal income tax is progressive, different blocks of income can be taxed at different rates. If you’re 65 or over, remember that a higher standard deduction can reduce your taxable income.

The key takeaways and summary were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.

Full transcript

[0:00:00] Here are your AARP top tips on how to identify your tax bracket.

[0:00:05] How much federal income tax will you pay this year?

[0:00:08] It depends on your taxable income.

[0:00:10] There are seven federal tax brackets ranging from 10 to 37%, and their

[0:00:15] income cutoffs are raised a little every year to account for inflation.

[0:00:19] Here’s how to find your bracket using 2027’s tax rules.

[0:00:24] Know the rough numbers.

[0:00:26] For example, if you’re filing single and your taxable income is up to $12,800,

[0:00:32] you’ll be in the 10% tax bracket.

[0:00:35] From there up to $52,025, your tax bracket is 12%.

[0:00:40] From $52,026 to $109,125, it’s 22%.

[0:00:48] From $109,126 to $208,325, it’s 24%.

[0:00:56] From $208,326 to $264,550, it’s 32%.

[0:01:04] And from there to around $661,000, it’s 35%.

[0:01:10] For every dollar you make over that, you’re paying a 37% tax.

[0:01:15] Look up the exact numbers.

[0:01:18] On aarp.org, search for tax brackets.

[0:01:23] Find the tax rate that corresponds with your income and filing status,

[0:01:27] whether you are filing as single or a married couple filing jointly.

[0:01:31] Understand progressive taxes.

[0:01:34] For federal income tax, your income is broken into different blocks or

[0:01:39] brackets, and each block gets taxed differently, so you may actually pay

[0:01:44] multiple tax brackets: 10% in that first block, then 12% for every dollar

[0:01:49] in the next block, and so on for each additional bracket of your income.

[0:01:54] Finally, don’t forget to factor in your senior deductions.

[0:01:58] If you’re 65 or over, your standard deduction is higher,

[0:02:02] making your taxable income lower.

[0:02:05] For more tips on your taxes, visit aarp.org/taxes.