See how your income tax bracket could change for 2027

Federal tax brackets are projected to increase by 3.2% for the upcoming tax year, a measure designed to counteract inflation and prevent bracket creep. This adjustment, based on the chained Consumer Price Index, will allow Americans to earn more before being taxed at higher rates. The standard deduction is also expected to rise for both single filers and married couples filing jointly.

• Federal tax brackets are projected to rise by 3.2% next year due to inflation adjustments.
• This increase helps prevent ‘bracket creep,’ where income taxed at lower rates can rise with inflation.
• The IRS typically announces inflation-adjusted brackets in October or November.
• Bloomberg Tax estimates the chained Consumer Price Index based on an 11-month average due to a government shutdown impacting October 2025 data.
• Higher inflation in 2026, partly attributed to the Iran war affecting fuel prices, is a factor in the larger tax bracket adjustment.
• The standard deduction is also projected to increase for both single filers and married couples filing jointly.