US raises 2027 tax brackets, standard deductions

The IRS has announced increased federal income tax brackets and standard deductions for the 2027 tax year, in line with inflation. The top tax rate of 37% now applies to individuals earning over $661,375 and married couples filing jointly with taxable income exceeding $793,650. The income thresholds for the other six tax brackets have also been raised, ranging from 10% to 35%.

The standard deduction for single filers has increased to $16,600, while married couples filing jointly can claim $33,200. These adjustments aim to help alleviate the burden of rising living costs, as indicated by the Consumer Price Index's 3.7% increase in September 2026.

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