As of Oct. 25, 2026, the IRS had not released official 2027 income-tax brackets or retirement-plan limits. Projections put the tax-threshold increase at 3.2%, while the main 401(k), 403(b) and eligible 457 deferral limit could rise to $25,500. September inflation and the missing October 2025 CPI reading could affect final figures.
| Rate | Single | Married filing jointly | Head of household | Married filing separately |
|---|---|---|---|---|
| 10% | Up to $12,800 | Up to $25,600 | Up to $18,250 | Up to $12,800 |
| 12% | Over $12,800 to $52,025 | Over $25,600 to $104,050 | Over $18,250 to $69,650 | Over $12,800 to $52,025 |
| 22% | Over $52,025 to $109,125 | Over $104,050 to $218,250 | Over $69,650 to $109,100 | Over $52,025 to $109,125 |
| 24% | Over $109,125 to $208,325 | Over $218,250 to $416,650 | Over $109,100 to $208,300 | Over $109,125 to $208,325 |
| 32% | Over $208,325 to $264,550 | Over $416,650 to $529,100 | Over $208,300 to $264,550 | Over $208,325 to $264,550 |
| 35% | Over $264,550 to $661,375 | Over $529,100 to $793,650 | Over $264,550 to $661,350 | Over $264,550 to $396,825 |
| 37% | Over $661,375 | Over $793,650 | Over $661,350 | Over $396,825 |
The figures are projections, not amounts released by the IRS. Bloomberg Tax & Accounting forecast a 3.2% rise in income thresholds for tax year 2027, compared with the 2.7% adjustment used for 2026. The seven rates would stay the same.
A separate schedule applies to estates and trusts. Projected tax is 10% on income below $3,400; $340.00 plus 24% of the excess over $3,400 for income over $3,400 but not over $12,100; and $2,428.00 plus 35% of the excess over $12,100 for income over $12,100 but not over $16,500. Above $16,500, the projection is $3,968.00 plus 37% of the excess over $16,500.
The projected standard deduction rises for every filing status
| Filing status | Projected 2027 deduction | 2026 amount |
|---|---|---|
| Joint return or surviving spouse | $33,200 | $32,200 |
| Single | $16,600 | $16,100 |
| Head of household | $24,900 | $24,150 |
| Married filing separately | $16,600 | $16,100 |
These are projected amounts for tax year 2027, filed in 2028. The One Big Beautiful Bill Act added an extra year of inflation adjustment to the 10% and 12% bands, making those lower brackets somewhat wider than they would be under the formula used for higher brackets. The Tax Cuts and Jobs Act created the rates in 2017; President Donald Trump signed the One Big Beautiful Bill Act on July 4, 2025, making them permanent.
Examples show how deductions and marginal rates affect the estimates
A single filer earning $60,000 could owe about $4,952, down from $5,020 under the comparison figures. Bloomberg Tax’s example assumes wage income, the standard deduction, no tax credits and unchanged pay in 2027. The projected $16,600 deduction would leave $43,400 taxable.
A married couple with $60,000 in combined income could owe about $2,704, compared with $2,840. Both calculations assume pay does not change. A raise that keeps pace with inflation would instead raise the dollar amount of the tax bill.
Each marginal rate applies only to the portion of taxable income within its band, after deductions. At the projected 10% rate, the maximum tax on income in that band would be $1,280 for a single filer and $2,560 for a married couple filing jointly.
The projected thresholds would apply to income earned from Jan. 1 through Dec. 31, 2027, with returns filed in early 2028, usually by mid-April. Returns filed next spring for 2026 income will use the 2026 thresholds and deduction.
The missing CPI month could leave the final tax figures different
The 2025 federal shutdown interrupted the inflation data Bloomberg Tax used for its forecast. October 2025 data was not published, so its calculation used an 11-month average. Under IRC § 1(f), annual tax adjustments generally rely on average C-CPI-U data for the 12 months ending Aug. 31. The IRS did not respond to Checkpoint’s request for comment on its calculation.
James Creech, a principal in Baker Tilly’s specialty tax practice, said he was “not overly concerned about the difference between using 11 months of inflation data and 12 months.” He added that the incomplete data “potentially creates greater latitude in how the missing information is interpreted.” An adjustment above actual inflation generally favors taxpayers; one that runs low can contribute to bracket creep.
Andrew Phillips, an EY principal and the firm’s Americas Quantitative Economics & Statistics leader, said “dropping out October would slightly bias the average upward.” He said that would modestly favor taxpayers on its own. Housing represents about a third of the index and is measured on a rolling six-month basis; the Bureau of Labor Statistics assumed no housing-price change for October. Phillips said the resulting effect “may have a material impact.”
Stephanie Hingtgen, a senior research analyst at the Center on Budget and Policy Priorities, expects the IRS to use published figures that omit October. She said leaving out that month yields a slightly higher adjustment for some provisions, “generally more favorable for tax[payers].” The August 2026 Consumer Price Index showed annual inflation of 3.4%, unchanged from the 12 months ending July 31, 2026.
Bloomberg Tax’s estimates also cover qualified business income deduction thresholds, alternative minimum tax thresholds, estate tax exemptions and penalties. The report identified first-time inflation adjustments under the One Big Beautiful Bill Act for Section 45F, the employer-provided childcare credit amount; Section 1202, certain capital-gains and gross-assets dollar limits; and Section 6041, the threshold for information-at-source reporting.
Workplace contribution and plan limits are also estimates
| Limit | 2026 actual | Projected 2027 |
|---|---|---|
| 401(k), 403(b) and eligible 457 elective deferrals, including designated Roth | $24,500 | $25,500 |
| Catch-up contribution, ages 50+ | $8,000 | $8,500 |
| Catch-up contribution, ages 60–63 | $11,250 | $11,750 |
| 415(c) defined-contribution plan annual addition | $72,000 | $75,000 |
| 415(b) defined-benefit plan maximum annuity | $290,000 | $300,000 |
| 401(a)(17) annual compensation / 408(k)(3)(C) SEP compensation | $360,000 | $375,000 |
| Highly compensated employee threshold, 414(q) | $160,000 | $170,000 |
| Key employee/officer compensation, 416(i) | $235,000 | $240,000, potentially $245,000 |
| FICA wage threshold associated with Roth catch-up mandate | $150,000 | $155,000 |
Marsh People and Investments, in projections by Margaret Berger and James Chakan dated Sept. 14, 2026, and Milliman both forecast increases. The estimates reflect inflation data through August, with September still outstanding. Different limits apply to SIMPLE plans.
The highly compensated employee threshold for a plan year helps determine status for the following plan year. An employee with 2027 plan-year compensation above $170,000 may be considered highly compensated for 2028.
Milliman also tracks limits for participant contributions to emergency savings accounts and eligible defined-contribution-plan distributions to domestic abuse victims. The latter is capped at the lesser of the applicable amount or 50% of the present value of the vested account balance, with distributions aggregated across an employer’s plans and its controlled group. SECURE 2.0 allows plan sponsors to offer Roth emergency savings accounts to employees who are not highly compensated. The law also addresses how qualified student loan payments interact with elective deferrals.
September inflation could move several workplace-plan caps
Milliman’s forecast assumes a 0.25% monthly CPI increase for September 2026. It estimates an annual increase factor of 3.4%; CPI had risen about 3.1% since Sept. 30, 2025. Milliman compared the estimate with a 3% annual change as of Sept. 30, 2025, and a 3.2% average annual change over the past 10 federal fiscal years.
If September’s CPI increase is less than 0.04%, the main elective-deferral ceiling could be $25,000 rather than $25,500. The regular catch-up limit for people 50 and older could stay at $8,000 instead of rising to $8,500. If September inflation exceeds 0.35%, the key employee/officer amount could reach $245,000. Marsh also said a September increase below 0.034% would put that limit $500 lower.
SECURE 2.0 requires plans that offer catch-up contributions to require Roth contributions for participants whose prior-year wages, as defined in IRC §3121(a), exceed $145,000, indexed for inflation. The projected $155,000 FICA wage threshold is one of the figures that could affect that requirement for 2027.
Official IRS releases will replace the projections
The IRS issues income thresholds in a fall revenue procedure and typically announces retirement-plan limits by mid-November. The agency could release the latter in October or November 2026; it announced the 2026 limits on November 13, 2025.
Taxpayers can use the estimates to plan, but should check the final figures before changing withholding or workplace contribution elections. This article is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or CPA about your specific situation.
