On November 5, 2026, the IRS released its inflation adjustments for tax year 2027 in Revenue Procedure 2026-35 (news release IR-2026-133). The seven federal income tax rates did not change: 10%, 12%, 22%, 24%, 32%, 35% and 37%. What moved is the income range each rate applies to. These figures apply to income earned in 2027, which most people report on the return they file in 2028.
The brackets apply to taxable income, which is income after deductions.
| Rate | Married filing jointly | Single |
|---|---|---|
| 10% | Up to $25,600 | Up to $12,800 |
| 12% | Over $25,600 to $104,050 | Over $12,800 to $52,025 |
| 22% | Over $104,050 to $218,250 | Over $52,025 to $109,125 |
| 24% | Over $218,250 to $416,650 | Over $109,125 to $208,325 |
| 32% | Over $416,650 to $529,100 | Over $208,325 to $264,550 |
| 35% | Over $529,100 to $793,650 | Over $264,550 to $661,375 |
| 37% | Over $793,650 | Over $661,375 |
For comparison, the 22% bracket for joint filers ended at $211,400 of taxable income for 2026. For 2027 it ends at $218,250.
For 2027, the standard deduction is $33,200 for married couples filing jointly, up $1,000 from $32,200 for 2026. It is $16,600 for single filers and married individuals filing separately, and $24,925 for heads of household.
People who are 65 or older (or blind) add an extra amount to the standard deduction. For 2027 that amount is $1,700 for each qualifying married individual, or $2,100 for someone who is unmarried and not a surviving spouse. A married couple filing jointly in 2027 with both spouses 65 or older would have a standard deduction of $36,600 ($33,200 plus $1,700 for each spouse).
Separately, for tax years 2025 through 2028, individuals age 65 and older may claim a senior deduction of up to $6,000 each ($12,000 for a married couple when both spouses qualify). It phases out above $75,000 of modified adjusted gross income ($150,000 for joint filers) and is available whether or not you itemize.
Withdrawals from traditional accounts. Withdrawals from a traditional IRA or a workplace plan such as a 401(k) are generally included in taxable income, except for any part that was already taxed and qualified distributions from Roth accounts. Knowing where the next bracket starts may help when you think about how much to withdraw in a given year.
Required minimum distributions. Under the IRS final regulations, required withdrawals from traditional IRAs and workplace plans generally start at age 73 for people born from 1951 through 1958, and at age 75 for people born in 1960 or later. People still working can generally delay RMDs from their current employer's plan until the year they retire, unless they own 5% or more of the business. Some pre-retirees look at the years between leaving work and their RMD age as a window for planning.
Roth conversions. Converting a traditional IRA to a Roth IRA makes any untaxed amount that is converted taxable in the year of the conversion. That is why the bracket thresholds often come up when people weigh how much, if anything, to convert in a year.
Capital gains. For 2027, the 0% long-term capital gains rate applies to taxable income up to $102,100 for joint filers and $51,050 for single filers.
Social Security. Social Security benefits rise 3.6% starting with January 2027 payments, under the cost-of-living adjustment the Social Security Administration announced on October 14, 2026. For people still working, the maximum earnings subject to Social Security tax rises to $192,300 for 2027, up from $184,500 for 2026.
As of November 6, 2026, the IRS had not published the 2027 contribution limits for 401(k), 403(b) and IRA accounts. The 2026 limits stay in place until it does.
If you would like to walk through how the 2027 figures fit your own retirement plan, a TRG advisor can review them with you at no cost.
This article is for general educational purposes only and should not be considered tax, legal, or investment advice. Tax rules depend on individual circumstances and can change. Consult qualified tax and financial professionals and review your plan documents before taking action.
Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA. Investing involves risk, including possible loss of principal.
Advisory services offered through Wealth Enhancement Advisory Services, LLC, a registered investment advisor and affiliate of Wealth Enhancement Group®.