How the 2027 tax brackets work
The U.S. has seven federal income tax rates — 10%, 12%, 22%, 24%, 32%, 35% and 37%. The One Big Beautiful Bill Act (OBBBA, signed July 4, 2025) made these rates permanent, so 2027 keeps the same seven rates; only the income thresholds move up with inflation (chained CPI). Bloomberg Tax and Thomson Reuters both project a 3.2% increase for 2027, versus 2.7% for 2026.
Brackets are marginal: each rate only applies to the slice of taxable income inside its band. A single filer with $60,000 of taxable income in 2027 would pay 10% on the first $12,800 ($1,280), 12% on $12,800–$52,025 ($4,707) and 22% on the last $7,975 ($1,754.50) — $7,741.50 total, an effective rate of 12.9%. Under the 2026 brackets the same income owes $7,912, so bracket creep saves about $170.
OBBBA provisions still in effect for 2027
- Higher standard deduction — made permanent and indexed for inflation.
- Senior deduction — extra $6,000 per person age 65+, tax years 2025–2028, phasing out above $75,000 MAGI ($150,000 joint).
- No tax on tips — deduction up to $25,000 of qualified tips, 2025–2028, phasing out above $150,000 MAGI ($300,000 joint).
- No tax on overtime — deduction for the overtime premium up to $12,500 ($25,000 joint), 2025–2028, same phase-out.
- Car-loan interest — up to $10,000 a year on a new U.S.-assembled personal vehicle, 2025–2028, phasing out above $100,000 ($200,000 joint).
- SALT cap — $40,000 for 2025, rising 1% a year through 2029 (about $40,804 for 2027), reduced for MAGI above roughly $500,000; reverts to $10,000 in 2030.
- Child tax credit — $2,200 per child for 2025–2026 and indexed for inflation after that; the 2027 amount will be in the IRS release.
This calculator covers ordinary income tax only. It does not include long-term capital gains rates, the 3.8% net investment income tax, credits, AMT or state tax — use the capital gains and paycheck calculators for those.
FAQ
Has the IRS released the 2027 tax brackets?
Not as of November 2, 2026. The IRS normally publishes next year's inflation adjustments in a revenue procedure in October or November (the 2026 figures came out October 9, 2025 in Rev. Proc. 2025-32). Until then, the 2027 figures on this page are projections from Bloomberg Tax and Thomson Reuters based on a 3.2% chained-CPI adjustment.
What is the projected 2027 standard deduction?
Projected: $16,600 for single filers and married filing separately, $33,200 for married filing jointly and about $24,900 for heads of household, up from $16,100, $32,200 and $24,150 in 2026.
How much federal tax does a single filer pay on $60,000 of taxable income in 2027?
About $7,741.50 using the projected 2027 brackets (10% on the first $12,800, 12% up to $52,025 and 22% on the rest), versus $7,912 in 2026 — roughly $170 less. The marginal rate is 22% and the effective rate on taxable income is about 12.9%.
Sources
- IRS, Rev. Proc. 2025-32 / IR-2025-103 — official 2026 brackets and standard deductions (October 9, 2025).
- Bloomberg Tax — 2027 Projected Tax Rates report (September 11, 2026), as reported by CPA Practice Advisor and CBS News.
- Thomson Reuters Checkpoint — key 2027 figures (September 11, 2026), incl. head-of-household and separate brackets.
- Wolters Kluwer — projected 2027 federal tax brackets (September 18, 2026).
- One Big Beautiful Bill Act, Pub. L. 119-21 (July 4, 2025) — rates, standard deduction, senior, tips, overtime, car-loan and SALT provisions.