US Tax Changes 2027

What's confirmed for tax year 2027 under current law — and what the IRS hasn't published yet. Sourced from the IRS and enacted statute only; no speculation. Last reviewed August 8, 2026.

The big picture: no tax cliff in 2027

For years, 2026 was pencilled in as the year the Tax Cuts and Jobs Act would expire and rates would snap back up. That cliff is gone: the One Big Beautiful Bill Act (P.L. 119-21, signed July 4, 2025) made the TCJA rate structure permanent. So 2027 is a year of continuity plus a handful of scheduled changes already written into law — listed below. The one thing nobody can tell you yet is the exact 2027 bracket dollar amounts, because the IRS hasn't published them.

1. Tax rates: unchanged, now permanent Law

The seven federal rates — 10%, 12%, 22%, 24%, 32%, 35%, 37% — continue in 2027. The bracket thresholds will be adjusted for inflation; for reference, the official 2026 thresholds (from IRS Rev. Proc. 2025-32) are:

RateSingle (2026, taxable income over)Married filing jointly
10%$0$0
12%$12,400$24,800
22%$50,400$100,800
24%$105,700$211,400
32%$201,775$403,550
35%$256,225$512,450
37%$640,600$768,700

2027 dollar amounts: not yet released. The IRS publishes each year's inflation adjustments the preceding fall (the 2026 figures arrived October 9, 2025), so expect official 2027 brackets and standard deduction around October–November 2026. We'll update this page when they land. The 2026 standard deduction is $16,100 (single) / $32,200 (joint), and it stays inflation-indexed for 2027.

2. SALT deduction cap rises to $40,804 Law

Tax yearSALT cap
2025$40,000
2026$40,400
2027$40,804 (+1%, set by statute)

The state-and-local-tax deduction cap increases 1% per year through 2029, then reverts to $10,000 in 2030 under current law. The cap still phases down toward $10,000 for modified AGI above roughly $500,000 (that threshold also rises 1% per year). If you itemize in a high-tax state, 2027 gives you slightly more room.

3. Tips, overtime & senior deductions continue through 2028 Law

DeductionMax amountAvailable in 2027?
Qualified tips ("no tax on tips")$25,000Yes (2025–2028)
Qualified overtime premium pay$12,500 single / $25,000 jointYes (2025–2028)
Extra deduction for age 65+$6,000 per qualifying personYes (2025–2028)
Car loan interest (US-assembled vehicles)$10,000Yes (2025–2028)

All four are temporary deductions created by the 2025 law and all remain claimable on your 2027 return, subject to income phase-outs (tips and overtime phase out above $150,000 single / $300,000 joint). They're scheduled to expire after 2028 — so 2027 is the second-to-last year under current law.

4. New Opportunity Zones start January 1, 2027 Law

The Opportunity Zone program is now permanent with rolling 10-year zone designations. The first new round of Qualified Opportunity Zones takes effect January 1, 2027, with tighter low-income eligibility criteria (Treasury published the eligible census tract rules in March 2026) and a rolling 5-year capital gain deferral for new investments. Relevant if you're planning to realize large capital gains in late 2026 vs 2027.

5. Other items already set for 2026–27 Law

ItemStatus for 2027
Child tax credit$2,200 per child in 2026, inflation-indexed going forward
Estate tax exclusion$15,000,000 base (2026), indexed for 2027
Personal exemptionsRemain at $0 (permanent)
Residential clean-energy & EV creditsAlready terminated (2025) — not available in 2027
Trump accounts for newborns$1,000 federal pilot contribution for babies born 2025–2028

What has NOT been announced (as of August 2026) Pending

The IRS has not yet released the 2027 bracket thresholds, standard deduction, 401(k)/IRA contribution limits, or Social Security wage base — all arrive in fall 2026 as routine inflation adjustments. No new tax legislation affecting 2027 has been enacted beyond what's listed above. Treat any specific "2027 bracket" figures you see elsewhere as unofficial projections.

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FAQs

Have the 2027 federal tax brackets been released?

No — expect them from the IRS around October–November 2026. The seven rates (10%–37%) are permanent, so only the dollar thresholds will change with inflation.

Were the Trump tax cuts extended into 2027?

Yes. The One Big Beautiful Bill Act made the TCJA rates and larger standard deduction permanent — there is no 2027 expiration.

What is the SALT cap in 2027?

$40,804 for most filers, set by the statute's 1%-per-year escalator, phasing down toward $10,000 at high incomes.

Do the tips and overtime deductions still apply in 2027?

Yes — both run through tax year 2028, with income phase-outs above $150,000 single / $300,000 joint.

What's new for investors in 2027?

New Qualified Opportunity Zone designations take effect January 1, 2027, with a rolling 5-year gain deferral for new investments.

Related tools & guides

US Tax Bracket Calculator · US Paycheck Calculator · Social Security Estimator · US salary take-home guides · All US tax tools · UK tax changes 2027 · Australia tax changes 2027

This page summarizes enacted federal law and official IRS announcements for general information only — it is not tax advice. State taxes are not covered. Verify current figures at irs.gov or with a qualified tax professional before acting.