IRS announces inflation adjustments for tax year 2027
November 07, 2026
The IRS has announced inflation adjustments to nearly 70 federal tax provisions for the 2027 tax year, generally affecting returns filed in 2028.
The standard deduction will increase to $33,200 for married couples filing jointly, $16,600 for single filers and $24,925 for heads of household. The maximum child tax credit will rise to $2,300, including a refundable portion of up to $1,800.
Income tax bracket thresholds will also increase, with the highest 37% rate applying to taxable income above $661,375 for individuals and $793,650 for married couples filing jointly.
Among other inflation-adjusted provisions, the maximum earned income tax credit for taxpayers with three or more qualifying children will increase to $8,496, the foreign earned income exclusion will rise to $137,300, and the monthly limitation for qualified transportation fringe benefits and qualified parking will increase to $350. Read more.
