THE BARE STORY
The Internal Revenue Service on Thursday announced inflation-adjusted federal income tax brackets, standard deductions, long-term capital gains thresholds, and estate and gift tax exemptions for the 2027 tax year. The income tax changes will apply to returns filed in 2028.
The IRS said the standard deduction will increase to $16,600 for single filers, from $16,100 in 2026, and to $33,200 for married couples filing jointly, from $32,200. The agency said the top 37% income tax rate will apply above $661,375 for single filers and above $793,650 for married couples filing jointly.
For long-term capital gains, the IRS said the 0% rate will apply to taxable income of up to $51,050 for single filers and $102,100 for married couples filing jointly. The 15% rate will apply up to $563,200 for single filers and $633,600 for joint filers, with income above those levels subject to the 20% rate.
The agency also raised the federal estate and gift tax exclusion to $15.48 million per person for 2027, from $15 million in 2026. The IRS said it also adjusted thresholds for other provisions, including the earned income tax credit and child tax credit.
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