Millions of US taxpayers are waiting on one of the tax calendar’s quieter but more consequential announcements: the Internal Revenue Service’s annual inflation adjustments for 2027. As of mid-October, the agency has not published them, but early projections offer a preview of how tax brackets and the standard deduction could change.

What the IRS Typically Announces

Each year the IRS adjusts dozens of tax provisions for inflation, including bracket thresholds, the standard deduction and various credits and limits. The figures apply to income earned in the coming year and are generally used on returns filed the year after. CBS News reported in September that the agency usually releases them in October or November, and that the IRS did not respond to a request about the timing of the 2027 numbers.

Last year’s release came on October 9, 2025, when the IRS published adjustments for tax year 2026, including amendments tied to the One, Big, Beautiful Bill. Those figures are the baseline against which any 2027 changes will be measured.

The 2026 Baseline

According to the IRS, the 2026 standard deduction is:

  • $16,100 for single filers and married individuals filing separately
  • $32,200 for married couples filing jointly and surviving spouses
  • $24,150 for heads of household

The 37% top rate for 2026 applies to taxable income above $640,600 for single filers and above $768,700 for married couples filing jointly. The maximum Earned Income Tax Credit is $8,231 for filers with three or more qualifying children, up from $8,046 for tax year 2025. The basic exclusion amount for estates of people dying in 2026 is $15 million, up from $13.99 million in 2025.

What Early Projections Suggest

A forecast from Bloomberg Tax, as reported by CBS News on September 11, projects that bracket thresholds will rise 3.2% for 2027. That compares with a 2.7% increase for the current year. The same forecast projects a 2027 standard deduction of $16,600 for single filers and $33,200 for married couples filing jointly.

Measured against the IRS’s 2026 figures, those projections would amount to an increase of $500 for single filers and $1,000 for joint filers. They are estimates only. The final numbers are set by the IRS and can differ from outside forecasts.

The forecast relies on the chained Consumer Price Index, the same inflation measure the IRS uses for these adjustments. CBS News noted that because October 2025 inflation data was not reported during a government shutdown, Bloomberg Tax calculated the index using an 11-month average, one reason final figures could diverge from early estimates.

Why Higher Thresholds Matter

Bracket adjustments exist to prevent “bracket creep,” in which income rises with inflation and pushes taxpayers into higher rates even though their purchasing power has not improved. When thresholds rise, the same amount of income is taxed at the same rates over a wider range. A larger standard deduction, meanwhile, shields more income from tax for those who do not itemize.

The timing carries added weight given the broader price environment. CBS News reported that August consumer price inflation ran at 3.4% annually, above expectations, with diesel prices above $6 per gallon and gasoline above $4. Higher inflation generally produces larger automatic adjustments, which partly offset the effect on household budgets, though not the cost of everyday goods.

Items Not Indexed for Inflation

Not every tax provision moves with prices. The IRS has noted that some items are fixed by statute, such as the personal exemption, which remains at $0, and the income phase-out thresholds for the Lifetime Learning Credit. Taxpayers should not assume every limit will change in 2027.

Other Figures to Watch

The same IRS announcement usually covers a range of other amounts. For 2026, the health flexible spending account salary reduction limit is $3,400, up $100, with a carryover maximum of $680. Employers’ open enrollment periods are underway or approaching at many companies, and 2027 figures for these accounts typically become clear only after the IRS publishes its annual guidance. The IRS release page for 2026 did not address health savings accounts, and no 2027 projections for FSAs or HSAs were identified in the reporting reviewed for this article.

Retirement plan contribution limits are typically announced separately, often shortly after consumer price data is released.

What Taxpayers Can Do Now

Because the 2027 figures do not yet exist officially, most taxpayers have little to act on beyond awareness. Several general points apply:

  • Changes to 2027 brackets and deductions affect income earned next year, not the return due in early 2027, which reflects 2026 rules.
  • Withholding and estimated tax payments for 2027 are usually reviewed after the official numbers are published.
  • Projections from forecasters are not IRS guidance, and individual circumstances vary widely.

Anyone with a complex situation may wish to consult a tax professional or review the IRS’s official Revenue Procedure once it is released. This article is informational and is not personalized tax advice.

Sources: CBS News; Internal Revenue Service (IRS).