IRS new tax brackets: 7 key takeaways for 2027 filings - Standard deduction to seniors relief

The IRS has announced new income tax brackets and standard deductions for 2026

Published on: Oct 9, 2025, 22:19:10 IST

By Yash Nitish Bajaj

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The IRS has announced new income tax brackets and standard deductions for 2026, adjusting for inflation in an effort to prevent ‘bracket creep’, when rising wages push taxpayers into higher tax brackets without an actual increase in purchasing power. On Thursday, the agency said that it is raising the income thresholds for each bracket, which apply to tax year 2026 for returns filed in 2027.

The IRS has released new income tax brackets for 2027 filings (Unsplash)

Here are seven key takeaways from the update

Inflation adjustment means potential savings

Americans will need to earn more before hitting higher tax brackets. For instance, a single filer earning $50,000 will fall under the 12% bracket in 2026, compared to 22% in 2025, offering some relief for middle-income earners.

Higher standard deductions

The IRS raised standard deductions across the board:

$32,200 for married couples filing jointly

$24,150 for heads of households

$16,100 for single filers or married individuals filing separately

Extra deductions for seniors

Under the One Big Beautiful Bill Act, seniors 65 and older may claim an additional deduction of up to $6,000, available to single filers earning up to $75,000 or joint filers earning up to $150,000. This temporary benefit will last through 2028.

Shutdown won’t affect tax deadlines

Despite a government shutdown, the IRS confirmed that all taxpayers — including those with an October 15 extension must file and pay as usual.

Single filers

10% $0-$11,925 $0-$12,400

12% $11,926-$48,475 $12,401-$50,400

22% $48,476-$103,350 $50,401-$105,700

24% $103,351-$197,300 $105,701-$201,775

32% $197,301-$250,525 $201,776-$256,225

35% $250,526-$626,350 $256,225-$640,600

37% $626,351 and up $640,601 and up

Married filing jointly

10% $0-$23,850 $0-$24,800

12% $23,851-$96,950 $24,801-$100,800

22% $96,951-$206,700 $100,801-$211,100

24% $206,701-$394,600 $211,401-$403,550

32% $394,601-$501,050 $403,551-$512,450

35% $501,051-$751,600 $512,451-768,700

37% $751,601 and up $768,701 and up

Temporary IRS furlough begins October 8

Due to funding lapses, the IRS will begin an agency-wide furlough on October 8, though core operations related to filings and payments will remain active, according to a spokesperson. Now, only 39,870 employees, or 53.6%, will remain working as the shutdown continues. It is unclear which workers will remain on the job.

ABOUT THE AUTHOR
Yash Nitish Bajaj
Yash Bajaj is a Chief Content Producer with a strong foundation in US coverage, digital strategy, and audience-focused storytelling. As part of the US Desk at Hindustan Times, he covers a wide range of topics - from American politics to sports (NFL, NBA, derbies, MLB and more). Before joining Hindustan Times, Yash served as Deputy News Editor at Times Now, where he oversaw international coverage and led a team of six. In this role, he significantly expanded global traffic through strategic planning, SEO-driven content execution, and meticulous trend tracking across platforms. He is experienced in managing high-pressure breaking-news shifts, coordinating live coverage, and building newsroom systems that improve speed, accuracy, and reach. Prior to Times Now, Yash held a position at Opoyi, where he headed the Sports and US news team. He developed broad editorial strategies, guided reporters across multiple beats, and played a key role in recruiting and training new talent. His responsibilities also extended to social media management and experimenting with innovative content formats. A passionate NFL fan, Yash is a die-hard supporter of the Cincinnati Bengals and has followed Joe Burrow closely since his college days at LSU. Whether breaking down top players' latest performance, analyzing team performances, or tracking roster moves, he brings the same dedication and sharp storytelling to his sports coverage as he does to American politics and breaking news. When he’s not writing, Yash can often be found watching games or debating the latest NFL storylines with fellow fans. Yash holds a Bachelor of Mass Media (Journalism) from HR College, Mumbai University. His interests extend well beyond the newsroom: he is an enthusiastic explorer of AI tools, a movie buff with an ever-growing watchlist, and someone who enjoys unraveling conspiracy theories for fun.Read More

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