Federal tax authorities announced higher income tax brackets and other annual inflation adjustments for tax year 2027.
The standard deduction and other tax provisions, such as capital gains brackets, the earned income tax credit limit, and estate and gift tax exemptions, have also increased, the IRS said on Nov. 5.
The highest tax rate for the 2027 tax year is 37 percent, which applies to taxable income above $661,375 for single filers and above $793,650 for married couples filing jointly.
All income tax thresholds for tax year 2027 are higher than in 2026.
The single filer tax brackets are:
10 percent for income up to $12,800
12 percent for income between $12,801 and $52,025…