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IRS releases new tax brackets, raises standard deductions - see what your 2027 tax rate will be
New York Post • • business
Key Points:
- The IRS has announced new tax brackets for 2027, increasing income thresholds by about 3.22% to 3.25% to adjust for inflation, while tax rates remain unchanged.
- The standard deduction will rise to $16,600 for individuals and $33,200 for married couples filing jointly, representing increases of $500 and $1,000 respectively.
- The child tax credit will increase by $100, reaching $2,300 for the 2027 tax year.
- The state and local tax (SALT) deduction cap remains unchanged by inflation adjustments but will receive a special 1% annual increase to $40,804 in 2027.
- Estate tax exclusions will rise from $15 million to $15.48 million, and the annual tax-free gift limit will increase by $1,000 per recipient to $20,000.
