Quick answer: The IRS raised the federal standard deduction and the income thresholds for federal tax brackets for tax year 2027. If your income and filing status stay the same, those changes can lower your federal income tax. The new amounts generally apply to returns filed in 2028. Use 2026 amounts for your 2026 return.
The IRS announced the changes on November 5, 2026, in release IR-2026-133. This comparison is for a U.S. single filer who takes the standard deduction and wants to see what the change could mean at the same income. It does not estimate take-home pay.
Put each year’s deduction and thresholds in separate columns
| Federal amount for a single filer | Tax year 2026 | Tax year 2027 |
|---|---|---|
| Standard deduction | $16,100 | $16,600 |
| 10% bracket ends at this taxable income | $12,400 | $12,800 |
| 12% bracket ends at this taxable income | $50,400 | $52,025 |
The income cutoffs in this table apply to taxable income, after deductions. Only the dollars within a bracket are taxed at that bracket’s rate. The full schedules and amounts for other filing statuses are in the 2026 IRS revenue procedure (2025-32) and 2027 IRS revenue procedure (2026-35, PDF).
Example: $68,000 of adjusted gross income in both years
Assume a single filer under age 65 who is not blind or another taxpayer’s dependent, with all income taxed at ordinary rates, no other deductions and no credits. The example applies the statutory brackets to show the effect of the changes; it is not a tax return calculation.
| Calculation | 2026 | 2027 |
|---|---|---|
| Adjusted gross income | $68,000 | $68,000 |
| Less standard deduction | $16,100 | $16,600 |
| Taxable income | $51,900 | $51,400 |
| Tax on dollars in the 10% bracket | $12,400 × 10% = $1,240 | $12,800 × 10% = $1,280 |
| Tax on dollars in the 12% bracket | $38,000 × 12% = $4,560 | $38,600 × 12% = $4,632 |
| Tax on dollars in the 22% bracket | $1,500 × 22% = $330 | $0 |
| Federal income tax before credits, using the brackets | $6,130 | $5,912 |
The bracket calculation is $218 lower in 2027 at the same adjusted gross income. In 2026, only $1,500 is in the 22% bracket; in 2027, all taxable income in the example falls in the first two brackets. This comparison excludes state taxes, payroll taxes and credits. The IRS tax table used on a return can differ slightly from this direct bracket calculation.
Use the comparison before making a paycheck change
Write down your filing status, projected adjusted gross income, deductions and current withholding. Keep the tax years separate, and mark any amounts that could change, such as a bonus or a second job. Review your first 2027 pay statement when it arrives. A lower projected annual tax does not tell you how much your employer will withhold or whether you will receive a refund.
When checking withholding for the relevant year, use the IRS Tax Withholding Estimator and current pay information. For a one-time bonus, see the bonus withholding and pay stub checklist. IRS sources checked November 6, 2026.