2027 tax brackets and federal income tax rates

The IRS announced new federal income tax brackets and standard deductions for 2027.

In its announcement Thursday, the agency raised the income thresholds for each bracket, which apply to the 2027 tax year for returns filed in 2028.

The IRS also increased the numbers for other key provisions, including long-term capital gains brackets, estate and gift tax exemption, and eligibility for the Earned Income Tax Credit, among others.

For 2027, the top rate of 37% applies to individuals with taxable income above $661,375 and to married couples filing jointly earning $793,650 or more.

Here are the federal income tax brackets for 2027:

• 37%: for income above $661,375 ($793,650 for married couples filing jointly)
• 35%: for income above $264,550 ($529,100 for married couples filing jointly)
• 32%: for income above $208,325 ($416,650 for married couples filing jointly)
• 24%: for income above $109,125 ($218,250 for married couples filing jointly)
• 22%: for income above $52,025 ($104,050 for married couples filing jointly)
• 12%: for income above $12,800 ($25,600 for married couples filing jointly)
• 10%: for income of $12,800 or less ($25,600 for married couples filing jointly)

Federal income tax brackets show how much you owe on each part of your “taxable income,” which you calculate by subtracting the greater of the standard or itemized deductions from your adjusted gross income.

The standard deduction will also increase in 2027, increasing to $33,200 for married couples filing jointly, up from $32,200 in 2026. Starting in 2027, single filers can claim $16,600, an increase from $16,100.

New federal income tax brackets for 2027 come as Americans struggle to be affordable amid the rising cost of housing, groceries, gasoline and other living expenses.

The consumer price index climbed 3.7% in September 2026 from a year earlier, up from an annual pace of 3.4% in August, the Bureau of Labor Statistics reported in October.

The U.S. federal income tax system is progressive, meaning that tax rates increase as income increases.

For 2027, the federal brackets include seven income levels, with rates ranging from 10% to 37%. Tax rates apply to each income bracket rather than a flat percentage for all income.

The IRS adjusts the income brackets for each tax rate each year based on the Consumer Price Index.

Your federal tax brackets depend on your filing status, which you choose on your tax return. Options include single, married, joint, married separately, heads of household, or eligible surviving spouses.

You can find your taxable income for 2025 on line 15 of your federal individual income tax return, known as Form 1040.