Every year, the IRS adjusts the tax code for inflation so that rising prices don’t quietly push families into higher tax brackets. On November 5, the agency released its 2027 figures, and they’re worth a look, especially with housing, groceries, and gas all costing more.

The seven federal income tax rates stay the same in 2027: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. What changes is how much income falls into each bracket. The income thresholds rise, so more of your earnings are taxed at lower rates than they would have been under the 2026 numbers.

The standard deduction also goes up. For 2027, it’s $16,600 for single filers and $33,200 for married couples filing jointly. Because the standard deduction is subtracted before brackets apply, a higher deduction can lower your taxable income even if your pay stays the same.

Other provisions were adjusted as well, including long-term capital gains brackets, the estate and gift tax exemption, and the earned income tax credit. The specific figures for these vary by filing status and situation, so they’re worth reviewing with your advisor rather than estimating on your own.

Keep in mind that these changes apply to tax returns filed in 2028 for the 2027 tax year. Your 2026 and 2027 planning may look different depending on your income, deductions, and goals.

At Boulder Wealth Advisors, we help clients think through how changes like these fit into their broader plans. If you’d like to talk through what the 2027 numbers could mean for you, let’s connect.

Source: IRS releases tax inflation adjustments for tax year 2027; taxpayers continue to benefit from the Working Families Tax Cuts

This article is for general informational purposes only and is not tax, legal, or investment advice. Consult a qualified professional about your specific situation.