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What's new in 2027 US federal taxes: everything published so far

The IRS just released 2027 tax brackets, standard deductions, and capital-gains thresholds — joining earlier 2027 updates for HSAs, Social Security, and new statutory credits. Here is what's official so far and what's still pending.

On November 5, 2026, the IRS published Revenue Procedure 2026-35 alongside News Release IR-2026-133, locking in nearly 70 inflation-adjusted federal tax thresholds for tax year 2027 (returns filed in early 2028).

Combined with earlier 2026 releases covering Health Savings Accounts, Social Security, and scheduled provisions taking effect on January 1, 2027 under SECURE 2.0 and the 2025 tax law (Public Law 119-21, the One Big Beautiful Bill Act / Working Families Tax Cuts), most of the 2027 federal tax map is now official. Below is a complete summary of what has been published as of early November 2026 — plus the few late-autumn numbers still on deck.

1. Standard deduction and the 65+ deduction stack

Driven by roughly 3.2% chained-CPI indexing, the basic standard deduction rises across every filing status under Rev. Proc. 2026-35:

Filing status 2026 2027 Change
Married filing jointly & surviving spouses $32,200 $33,200 +$1,000
Head of household $24,150 $24,925 +$775
Single $16,100 $16,600 +$500
Married filing separately $16,100 $16,600 +$500

For retirees and older workers, two separate age-based deductions sit on top of those baseline numbers in 2027:

  • Additional standard deduction for age 65+ or blindness (§ 63(f)): Increases by $50 to $1,700 per qualifying spouse on joint/separate returns (or surviving spouses) and $2,100 for unmarried filers.
  • Temporary $6,000 senior deduction (2025–2028): Enacted under the Working Families Tax Cuts, taxpayers age 65 or older can claim an extra $6,000 per person ($12,000 on a joint return if both spouses are 65+), whether they take the standard deduction or itemize. It begins phasing out above $75,000 MAGI for single filers and $150,000 MAGI for joint filers.

Stack all three together, and an eligible 65+ single filer below the phase-out shelters $24,700 before owing a dime of ordinary income tax ($16,600 + $2,100 + $6,000), while a married couple both 65+ shelters $48,600 ($33,200 + $3,400 + $12,000) — widening the low-tax runway for IRA withdrawals and carefully sized Roth conversions.

2. 2027 federal income tax brackets

The seven permanent marginal rates (10% through 37%) remain unchanged, while the taxable-income thresholds move upward to prevent bracket creep (Rev. Proc. 2026-35, § 3.01):

Marginal rate Single Married filing jointly Head of household
10% Up to $12,800 Up to $25,600 Up to $18,250
12% $12,801 – $52,025 $25,601 – $104,050 $18,251 – $69,650
22% $52,026 – $109,125 $104,051 – $218,250 $69,651 – $109,100
24% $109,126 – $208,325 $218,251 – $416,650 $109,101 – $208,300
32% $208,326 – $264,550 $416,651 – $529,100 $208,301 – $264,550
35% $264,551 – $661,375 $529,101 – $793,650 $264,551 – $661,350
37% Over $661,375 Over $793,650 Over $661,350

(For married individuals filing separately, brackets match single filers through 32%, with 37% starting above $396,825.)

3. Long-term capital gains and investment thresholds

Preferential ceilings for long-term capital gains and qualified dividends also step higher for 2027 (Rev. Proc. 2026-35, § 3.03):

Capital gains rate Single Married filing jointly Head of household
0% Up to $51,050 Up to $102,100 Up to $68,350
15% $51,051 – $563,200 $102,101 – $633,600 $68,351 – $598,400
20% Over $563,200 Over $633,600 Over $598,400

Because capital-gains brackets key off taxable income (after deductions), a joint couple under 65 taking the $33,200 standard deduction can realize up to $135,300 of total income ($102,100 + $33,200) inside the 0% long-term capital gains zone — and a couple both age 65+ claiming the full deduction stack can reach $150,700 before crossing into the 15% capital-gains tier (subject to the senior deduction's $150,000 MAGI phase-out).

Keep in mind that the 3.8% Net Investment Income Tax (NIIT) thresholds are not indexed for inflation and remain fixed at $200,000 MAGI (single) and $250,000 MAGI (joint).

4. Health Savings Accounts, FSAs, and long-term care limits

Earlier in the year, the IRS issued Revenue Procedure 2026-24 setting 2027 parameters for Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs), while Rev. Proc. 2026-35 added 2027 updates for FSAs and long-term care insurance:

  • HSA contribution limits: Rise to $4,500 for self-only coverage (+$100) and $9,000 for family coverage (+$250). The age 55+ catch-up stays at $1,000 by statute.
  • HDHP thresholds: Minimum deductibles increase to $1,750 (self-only) and $3,500 (family); maximum out-of-pocket limits increase to $8,700 (self-only) and $17,400 (family).
  • Health FSAs: Salary-reduction contributions rise to $3,500 (+$100), and the maximum unused carryover rises to $700 (+$20).
  • Qualified long-term care insurance: Age-based caps on deductible LTC premiums move to $1,890 (ages 51–60), $5,030 (ages 61–70), and $6,290 (over age 70), while the tax-free per-diem benefit cap rises to $445/day.

5. Social Security changes for 2027

The Social Security Administration's 2027 COLA Fact Sheet brings four distinct tax and retirement planning shifts:

  • 3.6% benefit COLA: Monthly Social Security and SSI benefits increase by 3.6% starting in January 2027.
  • $192,300 payroll tax cap: Maximum earnings subject to the 6.2% OASDI payroll tax jump from $184,500 to $192,300 — adding up to $483.60 in employee tax (or $967.20 for self-employed workers).
  • Retirement earnings test limits: Beneficiaries claiming before Full Retirement Age (FRA) can earn up to $25,560 in 2027 ($2,130/month) before $1 is withheld per $2 above the cap. Those reaching FRA during 2027 have a higher exempt limit of $67,920 ($5,660/month) for months prior to their birth month.
  • Full Retirement Age hits 67: Workers born in 1960 turn 67 in 2027 — completing the multi-decade transition from 65 to 67 enacted in 1983. Anyone born in 1960 or later now has a 67 FRA.

(Note: Unlike tax brackets, the $25,000 single / $32,000 joint provisional-income thresholds that make up to 85% of Social Security benefits taxable remain unindexed by statute.)

6. Brand-new and stepping-up tax rules taking effect in 2027

Beyond routine inflation indexing, several statutory tax changes either launch on January 1, 2027 or step up automatically under multi-year formulas:

  • The new federal Saver's Match (replaces the Saver's Credit): Starting in 2027 under SECURE 2.0, the IRS replaces the old nonrefundable Saver's Credit for IRA and workplace-plan contributions with the Saver's Match. Eligible low- and moderate-income savers receive a 50% federal match on up to $2,000 of contributions ($1,000 max per person) deposited directly into their retirement plan or IRA after filing Form 8880-A in 2028. The full 50% match applies up to $20,500 MAGI (single), $30,750 (head of household), and $41,000 (married filing jointly), phasing out completely at $35,500, $53,250, and $71,000.
  • SALT deduction cap steps up to $40,804: Under Public Law 119-21's 1% annual escalator ($40,000 in 2025, $40,400 in 2026), the State and Local Tax deduction cap increases to $40,804 ($20,402 married filing separately) for 2027, subject to high-earner phase-downs above roughly $510,050 MAGI. Meanwhile, taxpayers in the 37% bracket continue to face the statutory cap on the tax value of itemized deductions noted in IR-2026-133.
  • New $1,700 Federal Scholarship Tax Credit (§ 25F): Treasury and the IRS issued implementing guidance (IR-2026-117 and the Federal Scholarship Tax Credit portal) for a new dollar-for-dollar nonrefundable tax credit of up to $1,700 per taxpayer ($3,400 on a joint return when both spouses contribute) for cash gifts made on or after January 1, 2027 to certified K–12 Scholarship Granting Organizations in participating states. Contributions claimed for the credit cannot also be deducted as charitable gifts.
  • Opportunity Zones 2.0 go live January 1, 2027: On November 5, 2026, Treasury and the IRS announced more than 6,500 newly designated Qualified Opportunity Zones (IR-2026-132) across all 50 states, D.C., and territories. Capital gains rolled into Qualified Opportunity Funds starting in 2027 operate under the permanent decennial framework, featuring a rolling 5-year deferral and enhanced basis step-ups for Rural Opportunity Funds.
  • Continuing 2025–2028 Working Families Tax Cuts & PTC rules: Temporary deductions for qualified tips (up to $25,000), overtime premium pay (up to $12,500 single / $25,000 joint), and interest on new U.S.-assembled personal auto loans (up to $10,000) remain active through 2027, alongside Section 530A children's accounts ($5,000 annual contribution limit). For early retirees buying ACA marketplace plans, Treasury and the IRS also issued proposed Premium Tax Credit regulations (IR-2026-121) reinforcing stricter eligibility verification alongside the removal of excess advance-credit repayment caps.

7. Credits, estate and gift exclusions, and business limits

Rounding out IR-2026-133 and Rev. Proc. 2026-35:

  • Estate and gift taxes: The unified estate, gift, and GST exclusion rises from $15,000,000 to $15,480,000 per person ($30,960,000 for a married couple), and the annual gift tax exclusion increases from $19,000 to $20,000 per recipient ($201,000 for gifts to a non-citizen spouse).
  • Child Tax Credit & EITC: The maximum Child Tax Credit increases by $100 to $2,300 per qualifying child (with up to $1,800 refundable). The maximum Earned Income Tax Credit rises to $8,496 (three or more children), with the investment-income cap moving to $12,600.
  • Alternative Minimum Tax (AMT): Exemptions climb to $93,000 for single filers (phasing out at $515,950) and $144,700 for joint filers (phasing out at $1,031,900).
  • Adoption & ABLE accounts: The adoption credit rises to $18,250 (up to $5,280 refundable), and annual ABLE account contributions rise to $20,000.
  • Business & investor provisions: Section 199A QBI deduction phase-ins start at $208,300 (single) and $416,600 (joint); Section 179 expensing rises to $2,640,000; Section 1202 Qualified Small Business Stock (QSBS) gain exclusions index to $15,480,000; and the Foreign Earned Income Exclusion reaches $137,300.

Official sources & further reading

Educational information only — not individualized tax, legal, or financial advice. Tax rules and late-year agency releases can change; confirm figures directly in the linked IRS and SSA publications and consult a qualified tax professional before acting.

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