2027 income tax brackets announced: What to know

article The IRS adjusts federal income tax brackets annually to account for inflation (Photo illustration by Michael Bocchieri/Getty Images) The Brief The IRS has announced federal income tax brackets and standard deductions for 2027. The IRS adjusts federal income tax brackets annually to account for inflation, and the new brackets can help you estimate your tax obligation based on your income and filing status for the year. The IRS has released federal income tax brackets and standard deductions for 2027. The IRS makes such adjustments for each tax year to account for inflation. Here’s what to know: 2027 tax brackets By the numbers: According to the IRS, the 2027 income tax brackets are: 37%: for incomes over $661,375 ($793,650 for married couples filing jointly) 35%: for incomes over $264,550 ($529,100 for married couples filing jointly) 32%: for incomes over $208,325 ($416,650 for married couples filing jointly) 24%: for incomes over $109,125 ($218,250 for married couples filing jointly) 22%: for incomes over $52,025 ($104,050 for married couples filing jointly) 12%: for incomes over $12,800 ($25,600 for married couples filing jointly) 10%: for incomes of $12,800 or less ($25,600 for married couples filing jointly) The standard deduction will also go up next year, from $32,200 for married couples in 2026 to $33,200 for married couples filing jointly in 2027. Single filers will see their standard deduction increase to $16,600, up from $16,100 in 2026. RELATED: Credit card delinquencies are rising fastest in these states; what to do about the debt What they're saying: "Hardworking American taxpayers will continue to benefit from the Working Families Tax Cuts (WFTC) and will see WFTC credits and deductions increase with this adjustment," IRS Chief Executive Officer Frank J. Bisignano said in a statement. "American individuals and businesses will see increased tax benefits next tax year ranging from an increase in the standard deduction and the Child Tax Credit for families, and a boost to the amount that can be expensed by businesses." MORE: Walmart's holiday meal basket offers meal for 10: How much it costs and what's included How do tax brackets work? Big picture view: According to Fidelity, the U.S. has a progressive tax system at the federal level with seven tax brackets. As you earn more money, the additional income jumps to a higher bracket with a higher tax rate. Over a certain amount, your income is taxed no further. RELATED: The cost of caring for a loved one is surging – and families are feeling the strain The IRS adjusts federal income tax brackets annually to account for inflation, and the new brackets can help you estimate your tax obligation based on your income and filing status for the year. RELATED: IRS launches mobile app for refund tracking and payments as agency targets fraud The IRS uses different federal income tax brackets and ranges depending on filing status: Single filers Married filing jointly Married filing separately Heads of households who are unmarried but taking care of a qualifying child or dependent The Source: This article includes information from the IRS, Fidelity and previous FOX Local reporting. FOX’s Stephanie Weaver contributed. Money U.S.