On November 5, 2026 the IRS published the tax year 2027 inflation adjustments for almost 70 provisions in Revenue Procedure 2026-35. The standard deduction rises to $16,600 for single filers, $33,200 for married couples filing jointly and $24,925 for heads of household, and every bracket threshold from 12% to 37% moves up. For a typical paycheck the change is small, a few dollars per pay period, and it is worth putting into your 2027 budget before January.
What the IRS announced on November 5, 2026
News release IR-2026-133 lists the figures of greatest interest to most taxpayers, and Revenue Procedure 2026-35 carries the full tables (IRS, IR-2026-133; Rev. Proc. 2026-35). The 2027 amounts generally apply to the tax returns filed in 2028.
- Standard deduction: $16,600 single and married filing separately (2026: $16,100), $33,200 married filing jointly (2026: $32,200), $24,925 head of household (2026: $24,150).
- Top rate: 37% stays, starting above $661,375 for single filers and $793,650 for joint filers.
- Child Tax Credit: up to $2,300 per child, $100 more than in 2026; the refundable part is $1,800.
- Health FSA: salary reductions up to $3,500, up $100; the carryover limit, where a plan allows it, is $700.
- Commuting: the monthly limit for qualified transit and qualified parking is $350, up $10.
- Unchanged: personal exemptions stay at $0.
2027 federal tax brackets for single filers
Each rate applies only to the slice of taxable income inside its band. The 2026 thresholds come from Revenue Procedure 2025-32 (IRS, Rev. Proc. 2025-32).
| Rate | 2027 taxable income (single) | 2026 taxable income (single) |
|---|---|---|
| 10% | Up to $12,800 | Up to $12,400 |
| 12% | $12,800 to $52,025 | $12,400 to $50,400 |
| 22% | $52,025 to $109,125 | $50,400 to $105,700 |
| 24% | $109,125 to $208,325 | $105,700 to $201,775 |
| 32% | $208,325 to $264,550 | $201,775 to $256,225 |
| 35% | $264,550 to $661,375 | $256,225 to $640,600 |
| 37% | Over $661,375 | Over $640,600 |
For married couples filing jointly the 2027 bands start at $25,600 (12%), $104,050 (22%), $218,250 (24%), $416,650 (32%), $529,100 (35%) and $793,650 (37%).
What it means for your take-home pay
Take a single filer with $70,000 of wages in both years, the standard deduction and no other income or credits. Federal income tax before credits works out from the IRS tables like this:
A married couple filing jointly with $140,000 of wages would owe $12,579 for 2027 against $13,140 for 2026, or $561 less, about $47 a month. State income tax, Social Security and Medicare follow their own rules, and a raise in 2027 can use up the difference. Your employer works out withholding from IRS Publication 15-T and your Form W-4 (IRS Publication 15-T), so the first January pay stub shows the real number.
A 15-minute budget update for 2027
- Save your last 2026 pay stub and compare it with the first one in January. Put the new net amount into your income line so a change in withholding is not mistaken for overspending. How to make a budget covers the income line.
- Check your W-4 after a life change. The IRS suggests checking withholding after a major life change, such as a new job, a marriage or the birth of a child. The IRS Tax Withholding Estimator runs the numbers with your pay stub at hand (IRS estimator).
- Set your health FSA election during open enrollment: up to $3,500 for 2027. Plan it from what you actually spent on copays and prescriptions this year; a category for medical costs in your expense app gives you that total.
- Move the gain to a goal. If your check grows by $20 to $50 a month, send that amount to an emergency fund or an extra debt payment before it disappears into everyday spending.
- Pick a tool you will keep using. Our comparison of free budgeting apps shows what each one keeps free, and free vs paid budgeting apps explains what a subscription adds.
This article is general information about federal amounts published by the IRS. Your own tax depends on your income, deductions, credits and state, and a tax professional can confirm the figures for your situation.
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