WASHINGTON, D.C. — The Internal Revenue Service has announced inflation adjustments for the 2027 tax year, including increases to federal income tax brackets, standard deductions and certain tax credits.

The adjustments are intended to account for inflation and will generally apply to income earned in 2027, with tax returns filed in 2028.

Under the new guidelines, the standard deduction for single taxpayers and married individuals filing separately will increase by $500 to $16,600.

For married couples filing jointly, the standard deduction will rise by $1,000 to $33,200. The standard deduction for heads of household will increase to $24,925.

The IRS also announced increases to income thresholds across federal tax brackets. The top federal income tax rate will remain at 37%, applying to single taxpayers with taxable income above $661,375 and married couples filing jointly with taxable income above $793,650.

Other tax brackets will also be adjusted upward to account for changes in the cost of living.

The maximum Child Tax Credit will increase by $100 to $2,300 per qualifying child in 2027. The maximum refundable portion of the credit will rise to $1,800.

The Earned Income Tax Credit will also see adjustments, with the maximum credit for qualifying taxpayers with three or more children increasing to $8,496.

The annual adjustments are designed to help prevent inflation-related income increases from pushing taxpayers into higher tax brackets without corresponding increases in purchasing power.

The new figures will not apply to 2026 income tax returns filed in 2027.

Additional information about the 2027 tax adjustments is available at irs.gov.