Standard Deduction and Tax Brackets Rise for 2027: Up $500–$700 Across Filings
The IRS has projected 2027 standard deduction increases: joint filers will rise to $33,200, single filers to $16,600, and heads of household to $24,950—a modest inflation adjustment of roughly 3.3%.
Standard deduction amounts are projected to be $33,200 for joint filers, $24,950 for heads of households, and $16,600 for all other taxpayers for tax year 2027. These projections represent the IRS's best estimate based on inflation data through August 2026.
What This Means
The standard deduction is the amount you can subtract from gross income before calculating federal income tax. More than 80% of US taxpayers claim the standard deduction rather than itemizing.
Barring new federal tax legislation, the seven-bracket structure (10%, 12%, 22%, 24%, 32%, 35%, 37%) will remain in place for 2027. Only the dollar income thresholds adjust annually for inflation. This means the tax bracket thresholds (where each rate tier begins) will also shift upward, typically protecting more income from higher tax rates.
For tax years 2025–2028, individuals age 65 or older can claim a new $6,000 senior deduction. The deduction is reduced by 6% of any excess of the taxpayer's modified adjusted gross income (MAGI) above $75,000 (single) or $150,000 (joint).
Foreigners and expats on US visas or with US tax filing obligations should note that these increases offer modest relief from inflation-driven bracket creep. If you earn US-source income (wages, self-employment, investment income), higher standard deductions and brackets mean you may owe less tax or need lower withholding. Review your W-4 or estimated tax payments to ensure you're withholding correctly for 2027.
Sources
Independent app, not a government. General information, not advice. The official source:
