Adjustments to tax brackets and deductions for 2027.
The IRS has announced adjusted federal income tax brackets and standard deductions for 2027 to account for inflation. While tax rates remain unchanged, the agency increased income thresholds for all seven brackets, potentially allowing taxpayers to earn more before reaching higher rates.
For the 2027 tax year, the top 37% rate will apply to individuals earning over $661,375 and married couples earning over $793,650.
The standard deduction for 2027 will be $16,600 for single filers and $33,200 for married couples filing jointly.
CNBCThe 0% long-term capital gains rate applies to single filers earning up to $51,050 and married couples up to $102,100.
CNBCThe 15% long-term capital gains rate applies up to $563,200 for singles and $633,600 for couples.
CNBCThe 20% long-term capital gains rate applies to income above the 15% threshold.
CNBCAdjustments also apply to the estate and gift tax exemption and earned income tax credit eligibility.
CNBCThe IRS is raising federal income tax brackets and the standard deduction for 2027 to adjust for inflation.
The IRS has increased the income thresholds for capital gains tax brackets and other tax provisions for 2027 as part of inflation adjustments.
The IRS has increased federal income tax brackets and standard deductions for 2027 to account for inflation.
The IRS has increased the standard deduction for 2027, allowing individuals and couples to shield an additional $500 from taxation.
Federal tax brackets and standard deductions are projected to rise by 3.2% in 2027 to offset inflation.
The IRS has raised tax brackets, standard deductions, and certain credits for 2027 to adjust for inflation.
The IRS has adjusted 2027 federal income tax brackets, standard deductions, child tax credits, and gift exclusions upward due to inflation.
The IRS has increased federal income tax bracket thresholds for 2027 to account for inflation.
Inflation adjustments to prevent hidden tax hikes
The IRS adjusts income thresholds to ensure that inflation does not push taxpayers into higher tax brackets despite their real purchasing power remaining the same. This mechanism prevents a phenomenon where nominal wage increases lead to a higher tax burden even when the standard of living has not improved.
For 2027, the top 37% rate now begins at $661,375 for individuals and $793,650 for married couples. The standard deduction also rises to $16,600 for single filers and $33,200 for joint filers, reducing the portion of income subject to tax. These shifts, along with the increased lifetime gift and estate tax exemption of $15.48 million, reflect a routine alignment with the consumer price index.
Focus on numbers over the mechanism of inflation
Coverage across USA Today and CNBC focuses heavily on the updated figures. Both outlets provide the specific thresholds for the top tax bracket and the new standard deduction amounts, giving readers the immediate data needed for financial planning.
CNBC goes further by detailing the long-term capital gains rates and the specific 0% threshold for single filers. USA Today distinguishes itself by noting that state-level death taxes may still apply despite the federal estate tax exemption increase. While the reporting is accurate and comprehensive regarding the numbers, it treats these changes as a routine administrative update without exploring the broader economic signals provided by the inflation index that triggered them.
Nov 10 · 10% tax rate for 2027 applies to earnings under $12,800
NBC Chicago reported that the 10% tax rate for 2027 applies to those earning under $12,800.
The 10% tax rate for 2027 applies to those earning under $12,800.
NBC ChicagoNov 7 · NY Post reports income threshold and tax credit increases
The NY Post reported that income thresholds for tax brackets will rise by approximately 3.22% to 3.25% and the child tax credit will increase by $100 to $2,300. The NY Post also stated that a special 1% adjustment brings the SALT deduction cap to $40,804, estate-tax exclusions will rise to $15.48 million, and the tax-free gift limit will increase to $20,000 per recipient. WBAL-TV reported that the refundable portion of the child tax credit is rising to $1,800 and that the annual exclusion for gifts is increasing from $19,000 to $20,000 for 2027.
Today's reports expand the scope of inflation adjustments beyond basic income brackets to include specific tax credits and deduction caps. NY Post provided the most granular detail by identifying a special 1% adjustment to the SALT deduction cap and the specific percentage increase for income thresholds.
WBAL-TV complemented this by specifying the refundable portion of the child tax credit. Together, these reports answer the first analysis's question by showing that the IRS is not just shifting brackets, but is adjusting a wider array of tax-shielding mechanisms to maintain taxpayer purchasing power.
Income thresholds for tax brackets will rise by approximately 3.22% to 3.25%.
NY PostThe child tax credit will increase by $100 to $2,300.
NY PostA special 1% adjustment brings the SALT deduction cap to $40,804.
NY PostEstate-tax exclusions will rise to $15.48 million.
NY PostThe tax-free gift limit will increase to $20,000 per recipient.
NY PostThe refundable portion of the child tax credit is rising to $1,800.
WBAL-TVThe annual exclusion for gifts is increasing from $19,000 to $20,000 for 2027.
WBAL-TVNov 6 · Standard deduction for singles filing as head of household set at $24,925
The Washington Post reported that the standard deduction for singles with children filing as head of household will be $24,925, and that new rates for singles and couples represent a $500 per person increase shielded from taxation compared to 2026 rates. CBS News reported that Bloomberg Tax projected 2027 federal income tax brackets would rise by 3.2% based on the chained Consumer Price Index. According to CBS News, Bloomberg Tax used an 11-month average for these calculations because a government shutdown prevented the Department of Labor from reporting October 2025 data. CBS News also reported that the IRS had not officially announced the new brackets at the time of the Bloomberg Tax report.
The standard deduction for singles with children filing as head of household will be $24,925.
Washington PostThe new rates for singles and couples represent an increase of $500 per person shielded from taxation compared to 2026 rates.
Washington PostBloomberg Tax projected that federal income tax brackets for 2027 would rise by 3.2% based on the chained Consumer Price Index.
CBS NewsBloomberg Tax used an 11-month average for calculations because a government shutdown prevented the Department of Labor from reporting October 2025 data.
CBS NewsCBS News reported that the IRS had not yet officially announced the new brackets at the time of the Bloomberg Tax report.
CBS NewsNews Story
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