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2027 tax brackets and federal income tax rates
CNBC • • business
Key Points:
- The IRS announced updated federal income tax brackets and standard deductions for the 2027 tax year, with income thresholds raised to account for inflation and other economic factors.
- The top tax rate of 37% will apply to individuals with taxable income over $661,375 and married couples filing jointly earning above $793,650 in 2027.
- The standard deduction will increase to $33,200 for married couples filing jointly and $16,600 for single filers in 2027, up from $32,200 and $16,100 respectively in 2026.
- These adjustments come amid rising living costs, including housing, groceries, and gasoline, with the consumer price index rising 3.7% year-over-year as of September 2026.
- The progressive tax system means tax rates apply to income within specific brackets, which are adjusted annually by the IRS based on inflation measures like the consumer price index.
