IRS sets 2027 standard deduction at $16,600 for single filers and $33,200 for couples

The IRS raised the standard deduction for 2027 to $16,600 for single filers, $33,200 for married couples filing jointly and $24,925 for heads of household, and moved all seven tax brackets up. The agency announced the figures on November 5, 2026 in IR-2026-133 and Rev. Proc. 2026-35. They cover income earned in 2027, which you report on the return you file in 2028.

Standard deduction and brackets, 2026 and 2027

The rates stay at seven levels from 10% to 37%. What moves is the taxable income at which each rate starts.

What it means for a paycheck

A single filer with $80,000 of wages and no other income has taxable income of $63,400 in 2027, against $63,900 in 2026. Federal income tax before credits on that income is $8,490 in 2027 and would have been $8,770 under the 2026 rules, a difference of $281.

Other 2027 amounts the IRS set

• Capital gains: the 0% rate on long-term gains applies up to taxable income of $51,050 (single), $102,100 (joint) and $68,350 (head of household). The 15% rate runs up to $563,200, $633,600 and $598,400. See the capital gains tax calculator.
• Child tax credit: $2,300 per qualifying child, of which up to $1,800 is refundable. Read how the credit works.
• Earned income credit: the maximum is $8,496 with three or more children, $7,552 with two, $4,573 with one and $685 with none.
• Aged or blind: an extra $1,700 on the standard deduction per person, or $2,100 for an unmarried taxpayer.
• Alternative minimum tax: exemption of $93,000 for unmarried filers and $144,700 for joint filers, phasing out above $515,950 and $1,031,900.
• Workplace benefits: health flexible spending account limit $3,500 (carryover up to $700), commuter and parking benefits $350 a month.
• Gifts and estates: annual gift tax exclusion $20,000 per recipient; estate tax basic exclusion $15,480,000 for people who die in 2027.
• Adoption credit: up to $18,250 of qualified expenses.

The revenue procedure also covers many business and excise amounts that do not affect an individual return. The full list is in Rev. Proc. 2026-35.

When do the new numbers apply?

Only to tax years beginning in 2027. Your 2026 return, due in 2027, and the paychecks you receive in 2026 use the 2026 amounts. Payroll systems usually adopt the new withholding tables in January 2027. Retirement plan limits, the Social Security wage base and the HSA limits for 2027 come from separate announcements; see our posts on the HSA limits and the Social Security wage base.