Overview
- The IRS announced the finalized inflation-adjusted figures on Thursday, Nov. 5, 2026, that will apply to tax year 2027 and affect returns filed in 2028.
- All seven federal income tax brackets were shifted upward so the same tax rates (10%–37%) now apply at higher taxable-income cutoffs, with the 37% top rate beginning at $661,375 for singles and $793,650 for joint filers.
- The standard deduction rose to $16,600 for single filers and $33,200 for married couples filing jointly, which will reduce taxable income for many households that claim the standard deduction.
- Long-term capital gains cutoffs were raised, setting the 0% rate up to $51,050 for singles and $102,100 for joint filers, the 15% rate up to $563,200/$633,600, and the 20% rate above those amounts, which may affect when investors realize gains or rebalance portfolios.
- The IRS also increased other indexed figures, including the estate and gift tax exemption and earned-income tax credit thresholds, meaning changes in estate planning, gift strategies, and low-income credit eligibility for 2027.