Marginal tax brackets, the standard deduction, and other inflation-connected tax figures are set for the 2027 tax year, the IRS announced Nov. 5.
Find the full details in this updated IRS publication, but see below for some of the more popular updates.
Standard Deduction
- Single or married, filing separately: $16,600, up from $16,100
- Married, filing jointly: $33,200, up from $32,200
- Head of household: $24,925, up from $24,150
- Those age 65 and over may claim an additional standard deduction ($2,100 for single filers, $1,700 for joint filers) as well as another $6,000 per taxpayer standard deduction authorized by the One Big Beautiful Bill Act. That deduction is set to expire at the end of 2028.
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Tax Brackets (Marginal Rates)
- 37% for incomes over $661,375 ($793,650 for married couples filing jointly)
- 35% over $264,550 ($529,100 married filing jointly)
- 32% over $208,325 ($416,650 married filing jointly)
- 24% over $109,125 ($218,250 married filing jointly)
- 22% over $52,025 ($104,050 married filing jointly)
- 12% over $12,800 ($25,600 married filing jointly)
- Note: Marginal rates apply only to the income amount that falls into the bracket, not a taxpayer’s full income amount.
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Tax Credits/Exemptions
- Alternative Minimum Tax (AMT) Exemption: $93,000 for individuals (begins to phase out at $515,950) and $144,700 for married couples filing jointly (begins to phase out at $1,031,900). Learn more about AMT.
- Earned Income Tax Credit (EITC): $8,496 for qualifying taxpayers with three or more children. Learn more about EITC.
- Estate Tax Exclusion: The basic exclusion of $15,480,000 in 2027 is up from $15 million in 2026.
- Gift Tax Exclusion: The first $20,000 given to any person in 2027 is excluded, up from $19,000 in 2026.
- Child Tax Credit: $2,300 maximum in 2027, up from $2,200 in 2026. $1,800 may be refunded, up from $1,700 in 2026. Learn more about the Child Tax Credit.
Find more financial resources at MOAA.org/finance.
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