Tax projected that federal income tax brackets will rise 3.2% in 2027, a forecast that would lift the income thresholds for all seven IRS tax brackets and push the standard deduction higher for married couples and single filers.
That early estimate matters because taxpayers are looking for a guide before the IRS releases its official inflation-adjusted brackets. The IRS usually announces those figures in October or November, and this year’s forecast landed while people were still trying to gauge how much more income would be sheltered from higher rates next year.
Tax issued its forecast on Friday, and CBS News reported it on September 11, 2026. The analysis used the same chained Consumer Price Index that the IRS relies on, but Tax said it calculated the index using an 11-month average. That left it with a projected 3.2% increase, compared with a 2.7% adjustment in the current tax year.
For married couples filing jointly, the 12% bracket would cover taxable income from $25,601 to $104,050 under the projection. The top of that bracket would rise $3,250 from 2026. Income below $25,601 would be taxed at the 10% rate, while only the portion of income that falls within the 12% bracket range would be taxed at 12%. Single filers would see similar inflation adjustments under the forecast.
The standard deduction would also rise if the projection holds. Tax estimated it at $33,200 for married couples filing jointly in 2027 and $16,600 for single filers, up from $31,500 and $15,750 in the current tax year.
The catch is that the IRS had not yet announced its official 2027 brackets when Tax released its estimate. The Department of Labor did not report October 2025 inflation data because of the government shutdown, which helps explain why outside forecasts have been getting attention before the agency’s own figures arrive.
Annual bracket changes are meant to reduce bracket creep, the quiet squeeze that happens when inflation lifts pay but not buying power. If the forecast proves close, the IRS will be confirming a larger shift in thresholds when it posts its official numbers in October or November. For taxpayers, the key question now is not whether the brackets will move, but how closely the IRS will match Tax’s 3.2% call.
