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Accountancy Slice
North America
Higher standard deductions and tax credits announced for 2027

The IRS has announced inflation adjustments to nearly 70 federal tax provisions for the 2027 tax year, generally affecting returns filed in 2028. The standard deduction will increase to $33,200 for married couples filing jointly, $16,600 for single filers, and $24,925 for heads of household. The maximum child tax credit will rise to $2,300, including a refundable portion of up to $1,800. Income tax bracket thresholds will also increase, with the highest 37% rate applying to taxable income above $661,375 for individuals and $793,650 for married couples filing jointly. Additional changes include raising the estate tax exemption to $15.48m, the annual gift tax exclusion to $20,000, and the maximum earned income tax credit for families with three or more qualifying children to $8,496. Personal exemptions will remain at zero.

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