WASHINGTON —
The IRS on Thursday announced new federal income tax brackets for 2027.
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The higher income thresholds were adjusted for inflation, according to a news release from the IRS.
Marginal tax rates for 2027 listed below:
- 10% for single individuals with incomes of $12,800 or less; $25,600 for married couples filing jointly
- 12% for single individuals with incomes over $12,800; $25,600 for married couples filing jointly
- 22% for single individuals with incomes over $52,025; $104,050 for married couples filing jointly
- 24% for single individuals with incomes over $109,125; $218,250 for married couples filing jointly
- 32% for single individuals with incomes over $208,325; $416,650 for married couples filing jointly
- 35% for single individuals with incomes over $264,550; $529,100 for married couples filing jointly
- 37% for single individuals with incomes over $661,375; 793,650 for married couples filing jointly
The standard deduction, which is applied by about 9 of 10 taxpayers, is also rising in 2027, according to the IRS.
The standard deduction for next year will increase to $33,200 for married couples filing jointly, up $1,000 from 2026. The standard deduction will rise to $16,600 for single taxpayers and married individuals filing separately. The standard deduction will be $24,925 for heads of households.
Child tax credit
The child tax credit will increase by $100 to $2,300 in 2027. The amount of credit that may be refundable is $1,800, also up $100 from last year.
Annual Exclusion for Gifts
The annual exclusion for gifts will increase to $20,000 in 2027, up from $19,000 in 2026.
