IRS Announces Higher Tax Bracket Thresholds and Standard Deduction for 2027

The IRS has announced inflation adjustments for the 2027 tax year that will raise the income thresholds for federal tax brackets and increase the standard deduction.

Ohio News Network’s Stacia Naquin reports that the standard deduction for single filers will rise by $500 to $16,600. The increases for married couples filing jointly are generally about twice as large.

The IRS also announced a $100 increase in the child tax credit. The agency adjusts tax brackets annually for inflation. The higher thresholds mean taxpayers can earn more before additional income is taxed at a higher rate.