Tax experts have projected the new 2027 Internal Revenue Service taxable income brackets - and it looks like good news for American taxpayers.
Income limits on all seven tax brackets are projected to go up by 3.2 percent to account for this year’s increased cost-of-living, according to experts including Bloomberg Tax and Wolters Kluwer. That’s higher than the 2.7 percent increase the IRS chose for 2026.
Single taxpayers will see the limit increase from $12,400 to $12,800 for those in the lowest tax bracket (10 percent), the firms projected. Married taxpayers in the 10-percent bracket will go from $24,800 to $25,600.
Income limits for the nation’s highest tax bracket - 37 percent - will increase from $768,000 and up to $793,650 and up, according to the experts.
The IRS is expected to release the official figures later this month.
The following projections for single, married and head of household filing statuses account for more than 98 percent of taxpayers, according to federal data:
Single
- 10% bracket: $0 - $12,800
- 12% bracket: $12,801 - $52,025
- 22% bracket: $52,026 - $109,125
- 24% bracket: $109,126 - $208,325
- 32% bracket: $208,326 - $264,550
- 35% bracket: $264,551 - $661,375
- 37% bracket: $661,375 and up
Married filing jointly
- 10% bracket: $0 - $25,600
- 12% bracket: $25,601 - $104,050
- 22% bracket: $104,051 - $218,250
- 24% bracket: $218,251 - $416,650
- 32% bracket: $416,651 - $529,100
- 35% bracket: $529,101 - $793,650
- 37% bracket: $793,650 and up
Head of household
- 10% bracket: $0 - $18,250
- 12% bracket: $18,251 - $69,650
- 22% bracket: $69,651 - $109,100
- 24% bracket: $109,101 - $208,300
- 32% bracket: $208,301 - $264,550
- 35% bracket: $264,551 - $661,350
- 37% bracket: $661,350 and up.
The IRS releases updated tax brackets every year to keep pace with inflation. As the cost of everyday goods and services goes up like groceries, rent and daycare, consumers’ dollars don’t go as far.
Inflation adjustments typically expand each tax bracket, making space for those who might be earning more but also paying higher prices across the board.
The annual updates also include increases for IRA and 401(k) contribution limits, and other tax deductions, credits and limits.
U.S. inflation has hit 3 percent or more six times this year, compared to only twice in 2025, according to the Bureau of Labor Statistics.
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