The IRS is raising federal income tax bracket thresholds and increasing the standard deduction for 2027. The changes could reduce some taxpayers’ tax bills as income thresholds rise with inflation.
The adjustments apply to income earned in 2027 and generally affect tax returns filed in 2028.
The standard deduction — the amount taxpayers may subtract from their income before calculating taxable income — will increase to $33,200 for married couples filing jointly, up $1,000 from 2026. It will rise to $16,600 for single taxpayers and $24,925 for heads of household…