The IRS has announced its inflation adjustments for the 2027 tax year. The standard deduction rises to $16,600 for single filers and $33,200 for married couples filing jointly, while the federal income-tax rates remain the same.

Which tax return does this affect?

The IRS announcement of November 5, 2026 concerns income earned in 2027, generally reported on returns filed in 2028. These are not the rules for 2026 income simply because its return is filed during 2027.

How much does the standard deduction increase?

The single-filer amount rises by $500 and the joint-filer amount by $1,000. For heads of household, the 2027 standard deduction is $24,925, an increase of $775. The Journal of Accountancy reports the same figures.

An extra $500 deduction does not mean a $500 tax refund. A deduction reduces the income on which tax is calculated; the resulting tax difference depends on the taxpayer’s circumstances.

What changes in the brackets?

The seven rates remain 10%, 12%, 22%, 24%, 32%, 35% and 37%. What changes is the taxable-income threshold for each bracket. For example, the 37% bracket starts above $661,375 for single filers and above $793,650 for married couples filing jointly.

A marginal rate applies to the portion of taxable income within that bracket, not automatically to every dollar earned. The IRS release includes the full threshold schedule and other annual adjustments. Individual filing status, deductions and credits still need to be considered before estimating a tax bill.