Every fall the IRS adjusts tax brackets, the standard deduction and dozens of other numbers for inflation. The official 2027 figures usually arrive in late October or early November. Until then, here is what we know: the official 2026 numbers you will file with next spring, the projected 2027 numbers, and what the change means for planning before December 31.
The short version: The seven tax rates (10% to 37%) do not change in 2027; only the income ranges do. Bloomberg Tax projects the 2027 brackets and standard deduction will rise about 3.2%, putting the standard deduction near $16,600 for single filers and $33,200 for married couples filing jointly, up from $16,100 and $32,200 in 2026. These are projections, not IRS figures. We will update this page with the official table as soon as the IRS publishes it.
Projected 2027 numbers at a glance
These figures are Bloomberg Tax projections based on the inflation formula in the tax code. The IRS may publish slightly different amounts after rounding.
| Item | 2026 (official) | 2027 (projected) |
|---|---|---|
| Standard deduction, single | $16,100 | $16,600 |
| Standard deduction, married filing jointly | $32,200 | $33,200 |
| Standard deduction, head of household | $24,150 | About $24,950 |
| Top of 10% bracket, single | $12,400 | $12,800 |
| Top of 10% bracket, married filing jointly | $24,800 | $25,600 |
| 37% bracket starts, single | $640,600 | $661,375 |
| 37% bracket starts, married filing jointly | $768,700 | $793,650 |
| 0% long-term capital gains rate, up to (single / joint) | $49,450 / $98,900 | $51,050 / $102,100 |
| Annual gift tax exclusion | $19,000 | $20,000 |
| Estate tax exemption, per person | $15,000,000 | $15,480,000 |
The official 2026 tax brackets
These are the brackets for the return you file in early 2027. They come from IRS Revenue Procedure 2025-32. The amounts are taxable income, meaning income after the standard deduction or itemized deductions.
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | $0 to $12,400 | $0 to $24,800 | $0 to $17,700 |
| 12% | $12,401 to $50,400 | $24,801 to $100,800 | $17,701 to $67,450 |
| 22% | $50,401 to $105,700 | $100,801 to $211,400 | $67,451 to $105,700 |
| 24% | $105,701 to $201,775 | $211,401 to $403,550 | $105,701 to $201,775 |
| 32% | $201,776 to $256,225 | $403,551 to $512,450 | $201,776 to $256,200 |
| 35% | $256,226 to $640,600 | $512,451 to $768,700 | $256,201 to $640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 |
People 65 or older also get an extra standard deduction of $2,050 (single) or $1,650 per qualifying spouse, plus the new $6,000 senior deduction for 2025 through 2028.
How brackets actually work
A bracket is not a label on all of your income. Only the dollars inside each range are taxed at that range's rate.
Take a single filer in Westchester earning a $75,000 salary in 2026. After the $16,100 standard deduction, taxable income is $58,900:
- 10% on the first $12,400 = $1,240
- 12% on the next $38,000 = $4,560
- 22% on the last $8,500 = $1,870
Total federal income tax: $7,670. She is "in the 22% bracket," but her tax is only about 10% of her salary. A raise that pushes her into a higher bracket only taxes the new dollars at the higher rate. It never makes take-home pay go down.
If her salary stays at $75,000 in 2027, the projected higher standard deduction and wider brackets would cut her federal tax by roughly $250 to $300, with no change in her income.
Why 2027 matters for your planning now
Because the 2027 brackets will be wider, the same income is taxed a little less next year. That creates a few December decisions:
- Defer income when you can. If you are self-employed, sending December invoices in early January moves that income into a year with higher thresholds. Only do this if you expect your 2027 income to be similar or lower.
- Fill up a low bracket on purpose. If 2026 is a low-income year, a partial Roth conversion that fills the 12% or 22% bracket can be cheaper now than later.
- Harvest gains at 0%. In 2026, long-term capital gains are taxed at 0% while taxable income stays under $49,450 single or $98,900 joint. Retirees and lower-income years often have room to sell winners tax-free.
- Bunch deductions. If you are close to the standard deduction, paying two years of charitable gifts or property tax in one year can make itemizing worth it in that year.
- Max out pre-tax retirement savings. Every dollar into a 401(k), up to $24,500 for 2026, comes off income at your top bracket.
What about New York?
New York sets its own income tax brackets, separate from the federal ones, and New York City residents pay city income tax on top. New York does not simply copy the federal inflation adjustments, so your state bracket can stay the same while your federal bracket moves. A projection that only looks at federal brackets misses part of the picture for Westchester and NYC households.
We will update this page
The IRS normally releases the official inflation adjustments in a revenue procedure in late October or early November. When it does, we will replace the projected numbers above with the official 2027 table for every filing status.
Plan with real numbers
Brackets are only useful when you run them against your own income, deductions and timing. London's Tax Services prepares federal and New York returns and builds year-end tax plans for individuals, families and small business owners from our office at 75 South Broadway in White Plains, serving Westchester County, the Bronx and New York City. Our year-end tax planning checklist covers the rest of the December moves. Book a free 15-minute call or call (646) 917-7714 to see what 2027 means for you.
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