IRS releases new tax brackets, raises standard deductions — see what your 2027 tax rate will be

The IRS has raised the income thresholds for each 2027 federal tax bracket to account for inflation, while keeping the tax rates unchanged. The adjustments may reduce tax bills for people whose incomes stay the same, and increase the amount many taxpayers can earn before paying tax.

The standard deduction will rise to $16,600 for individuals and $33,200 for married couples filing jointly, increases of $500 and $1,000 respectively. The child tax credit will increase by $100 to $2,300, while the tax-free estate exclusion will reach $15.48 million and the annual gift tax exclusion will be $20,000 per recipient; the SALT deduction gets a separate adjustment to $40,804.