The IRS announced new federal income tax brackets and standard deductions for tax year 2027, covering returns filed in 2028. The income thresholds for each bracket were raised, with the top 37% rate applying to individuals with taxable income above $661,375 and married couples filing jointly earning at least $793,650. The standard deduction will rise to $33,200 for married couples filing jointly, up from $32,200 in 2026, and to $16,600 for single filers, compared with $16,100 previously. The announcement also updated long-term capital gains brackets, the estate and gift tax exemption, and eligibility for the earned income tax credit. The seven tax rates range from 10% to 37%, with each rate applying only to the portion of taxable income within its corresponding income band.
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