2027 Tax Brackets, Capital Gains Rates, and Contribution Limits

The IRS published the 2027 inflation adjustments on November 5, 2026, in Revenue Procedure 2026-35. ^{1, 2} They set the brackets, the standard deduction, the capital gains thresholds and several dozen other figures for income earned in 2027, which you report on the return you file in 2028. The 2027 HSA limits came out earlier in the year, and the Social Security Administration published its 2027 figures in October. ^{4, 18}

Two sets of numbers were still unpublished on November 8, 2026: the 2027 401(k), IRA and other retirement plan limits, which the IRS releases in a separate notice, and the 2027 Medicare Part B premium and IRMAA brackets, which CMS announced in mid-November last year. ^{5, 19} Those rows show the 2026 figure and are marked pending. This page will be updated when each is released.

The 2027 numbers at a glance

Confirmed: published by the IRS, SSA or CMS. Pending: not yet published as of November 8, 2026; the 2026 value is shown. Fixed in law: a dollar amount set in the statute with no inflation adjustment. Scheduled in law: the statute sets each year’s amount, with no inflation adjustment (the SALT figures rise 1% a year).

Federal income tax brackets for 2027

The seven rates are the same as in 2026: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Each threshold rose about 3.2%. ¹ A rate applies only to the taxable income inside its band, so crossing into a higher bracket raises the tax on the dollars above the threshold and leaves the tax on the rest unchanged.

For comparison, the 2026 brackets: ³

Brackets apply to taxable income, after deductions. For a married couple whose only deduction is the standard deduction, the top of the 12% bracket corresponds to $137,250 of adjusted gross income in 2027 ($104,050 plus $33,200), up from $133,000 in 2026. For a couple who are both 65 or older, the age-65 addition and the senior deduction move that point to $152,366.

Standard deduction and the senior deduction

Rev. Proc. 2025-32 section 4.14 and Rev. Proc. 2026-35 section 3.15.

The senior deduction from the 2025 tax law adds $6,000 for each person 65 or older in tax years 2025 through 2028, whether or not you itemize. It is not indexed. It shrinks by 6% of modified AGI above $75,000 ($150,000 on a joint return), and Schedule 1-A applies that reduction to each spouse’s $6,000 separately. Married couples must file jointly to claim it. ^{25, 26} A couple who are both 65 or older lose 12 cents of deduction for every dollar of income above $150,000 and have none left at $250,000.

That phase-out raises the tax on each extra dollar above the bracket rate. For a married couple, both 65 or older and taking the standard deduction, each dollar of ordinary income between $152,366 and $250,000 of modified AGI adds $1.12 of taxable income in the 22% bracket, a 24.64% rate on that dollar. For a single filer 65 or older, the phase-out multiplies the bracket rate by 1.06 between $75,000 and $175,000 of modified AGI (23.32% in the 22% bracket). The calculator below includes it.

Three other deductions from the same law run through 2028 and are fixed in dollars: up to $25,000 of qualified tips and up to $12,500 of qualified overtime pay ($25,000 joint), both phasing out above $150,000 of modified AGI ($300,000 joint), and up to $10,000 of interest on qualifying car loans taken out after 2024, phasing out above $100,000 ($200,000 joint). ²⁵

Capital gains and qualified dividend rates for 2027

Long-term gains and qualified dividends are stacked on top of ordinary taxable income. Ordinary income fills the 0% band first, and gains take whatever room is left. ¹

With no other income, a married couple under 65 taking the standard deduction could realize $135,300 of long-term gains in 2027 and owe no federal income tax. A couple who are both 65 or older could realize $150,625, because the age-65 addition and most of the senior deduction add to the room. Social Security changes the answer: gains count toward the income that makes benefits taxable, so with $50,000 of benefits the same older couple’s 0% room falls to $108,125, still with no federal income tax owed.

The 3.8% net investment income tax is a separate calculation. It applies to the smaller of net investment income or the amount by which modified AGI exceeds $200,000 ($250,000 joint, $125,000 married filing separately), thresholds that have not changed since the tax took effect in 2013. ³⁰ Above the threshold, a gain taxed at 15% costs 18.8% and one taxed at 20% costs 23.8%. Net capital losses can offset up to $3,000 of ordinary income a year, a limit that has stood since 1978. ³³

Calculator: your 2027 brackets and headroom

Enter one year of income. The calculator applies the 2026 and 2027 tables to it and shows how much more ordinary income fits in your 2027 bracket, how many long-term gains you could still realize at 0%, and the tax on the next $1,000 of each. That last figure includes the knock-on effects of Social Security taxation, the senior deduction phase-out, gains pushed out of the 0% band and the 3.8% NIIT.

The default inputs show a common case. A married couple with $120,000 of ordinary income and $20,000 of long-term gains is in the 12% bracket, yet the next $1,000 of ordinary income costs 27%, because it moves $1,000 of their gains from the 0% rate to 15%.

The room figures are a starting point for sizing a Roth conversion or a gain-harvesting sale. The calculator leaves out ACA premium credits, the Medicare IRMAA surcharge two years later and state income tax, any of which can make a smaller amount the better choice, and it says nothing about whether today’s rate beats the rate you would pay on the same money later. For conversions spread over many years, the Roth conversion calculator projects RMDs, Social Security and IRMAA to age 95.

401(k), IRA and HSA limits for 2027

The IRS had not published the 2027 retirement plan limits as of November 8, 2026. The table shows the 2026 figures from Notice 2025-67. ^{5, 6} The 2027 HSA limits are final. ⁴

A 457(b) plan has its own limit, separate from the one shared by 401(k) and 403(b) plans, so an employee offered both a 457(b) and a 403(b) can defer the full amount to each. ⁷

Bronze and catastrophic plans have counted as HSA-eligible coverage since 2026, and direct primary care fees of up to $150 a month ($300 for more than one person) do not disqualify you. ^{15, 4} HSA money can pay long-term care insurance premiums up to an age-based limit, which for 2027 is $5,030 at ages 61 to 70 and $6,290 over 70. ^{1, 16} Marketplace plans have their own 2027 out-of-pocket cap of $12,000 ($24,000 for a family), and a plan can meet that cap and still fail the stricter HDHP test. ¹⁷

The Saver’s Match starts in 2027

From 2027, the federal government deposits a match into the retirement account of eligible savers: 50% of up to $2,000 of contributions per person, so up to $1,000 each. The match phases out over these ranges of modified AGI: $20,500 to $35,500 for single filers, $30,750 to $53,250 for heads of household and $41,000 to $71,000 for married couples filing jointly. From 2028 the starting points rise with inflation; the width of each range does not. ⁸

Pre-tax contributions do not lower the income the match is tested against. Its modified AGI adds back traditional 401(k), 403(b) and 457(b) deferrals and deductible IRA contributions made that year. ⁹ A married couple with $50,000 of wages who each defer $5,000 to a traditional 401(k) report $40,000 of AGI, but the match counts $50,000, which cuts it from $1,000 to $700 each.

You must be 18 or older, not a full-time student and not claimed as a dependent. The match goes into a traditional IRA or workplace plan that accepts it. It cannot be deposited into a Roth IRA or Roth 401(k), although Roth contributions count toward qualifying. Withdrawals in the current year, the two years before it, or before that year’s return is due reduce the contributions that count, and taking match money out early can trigger a recovery tax. ⁹ You claim it on the 2027 return, on Form 8880-A, which the IRS has not yet published. The old Saver’s Credit continues only for contributions to ABLE accounts. ⁸

Early retirees with part-time earnings can qualify. For a married couple with $40,000 of modified AGI in 2027, counting their own contributions, who each contribute $2,000 to an IRA, the match is $1,000 each. Roth conversions and realized gains count toward that income, so a year of large conversions can eliminate the match. In a 2005 field experiment with about 14,000 H&R Block clients, IRA take-up was 3% with no match offered, 8% with a 20% match and 14% with a 50% match. ¹⁰

Trump accounts, ABLE accounts and 529-to-Roth rollovers

Trump accounts, the children’s accounts created by the 2025 law, keep a $5,000 annual contribution limit in 2027 and are indexed from 2028. Employers can contribute up to $2,500 per employee tax-free, and children who are U.S. citizens born from 2025 through 2028 can receive a one-time $1,000 federal deposit. ¹¹ ABLE accounts take up to $20,000 in 2027. ¹ A 529 plan open for at least 15 years can roll up to $35,000 over the beneficiary’s lifetime into the beneficiary’s own Roth IRA, by direct transfer. Contributions made in the last five years, and their earnings, cannot be rolled. Each year’s rollover is capped by the Roth IRA contribution limit, less any other IRA contributions, and by the beneficiary’s earned income, but the Roth income phase-out does not apply. The 2027 annual amount waits on the IRS notice. ^{13, 14, 12} More on the children’s accounts in Trump Accounts for Children.

Social Security and Medicare in 2027

SSA FR Doc. 2026-21796; CMS 2026 Parts A and B fact sheet; CY 2027 Part D Rate Announcement; 26 U.S.C. 86. ^{18, 19, 21, 31}

The 6.2% Social Security tax stops at the wage maximum, so an employee who earns at least $192,300 in each year pays $483.60 more in 2027 than in 2026, and the tax comes out of more paychecks. The 1.45% Medicare tax has no cap. ¹⁸

The 2026 Medicare Trustees Report projects a 2027 Part B premium of $209.50 a month. That is a projection; CMS sets the premium itself. ²⁰ Whatever the 2027 IRMAA brackets turn out to be, your 2027 surcharge is based on the modified AGI on your 2025 tax return. Income you realize in 2027 sets your 2029 premiums. ²² From age 63, a Roth conversion or large gain is also a Medicare premium decision two years out.

Before Medicare, the enhanced premium tax credits that expired after 2025 have not been renewed, so for 2027 Marketplace coverage the credit again stops at 400% of the poverty line. A household between 300% and 400% is expected to contribute 10.22% of income toward the benchmark plan. ^{24, 23} The ACA subsidy cliff guide covers how early retirees manage income around it.

Families, gifts and itemized deductions

Rev. Proc. 2026-35 sections 3.02, 3.04-3.06, 3.11, 3.15(2), 3.28, 3.31, 3.44 and 3.46; Rev. Proc. 2025-32 for 2026. The kiddie tax figure is twice the $1,400 amount in section 3.02 (2026: $1,350). SALT figures are set by 26 U.S.C. 164(b)(7) at $40,400 and $505,000 for 2026, rising 1% a year. ^{1, 3, 27, 28}

The gift exclusion rose 5.3%, faster than the brackets, because the law rounds it down to a multiple of $1,000. It moves in $1,000 steps once enough inflation accumulates. ²⁹ The estate exclusion, set at $15 million for 2026 by the 2025 law, is indexed from 2027. ^{3, 1}

For itemizers, the SALT cap of $40,804 drops by 30% of modified AGI above $510,050 but not below $10,000, rises 1% a year through 2029 and returns to $10,000 in 2030. A married person filing separately gets half of each figure: a $20,402 cap, reduced above $255,025 of modified AGI, to no less than $5,000. ²⁸ Charitable gifts count only above 0.5% of AGI, and in the 37% bracket itemized deductions save at most 35 cents on the dollar. Taxpayers who take the standard deduction can deduct up to $1,000 of cash gifts to charity ($2,000 joint). ^{27, 25}

The AMT exemption phase-out was reset to $500,000 and $1,000,000 for 2026 by the 2025 law and is indexed again from 2027. ^{3, 1} It matters most in a year you exercise incentive stock options.

Thresholds never indexed for inflation

Some thresholds are written into the statute as fixed dollar amounts. Inflation lowers their real value every year and brings more households above them. The last column shows what each would be today had it been indexed to consumer prices from the year it took effect.

Method: amount × CPI-U for September 2026 (336.940) ÷ CPI-U annual average for the year each took effect (1978: 65.233; 1984: 103.883; 1994: 148.225; 1997: 160.517; 2013: 232.957; 2018 for the mortgage cap: 251.107), rounded to the nearest $100 for the loss limit and $1,000 otherwise. BLS series CUUR0000SA0. ³⁶

The senior deduction, the dependent care FSA limit and the non-itemizer charitable deduction are also fixed dollar amounts. A married couple with about $173,000 of modified AGI in 2013, whose income has since risen with prices, now sits at the $250,000 NIIT threshold.

What to update for 2027

1. Payroll elections. If you contribute the maximum to a 401(k), set the per-paycheck amount for 2027 once the IRS publishes the limit, before your first 2027 paycheck if your employer allows. The HSA limit of $4,500 or $9,000 includes employer contributions.
2. Roth conversion and gain-harvesting targets. Reset them to the 2027 bracket tops. Conversions count in the year they are made, with a December 31 deadline.
3. Withholding and estimated tax. Regular payroll withholding follows the new tables, but many employers withhold on supplemental wages such as RSU vests at a flat 22% (37% above $1 million), whatever your bracket. The RSU withholding guide covers choosing a rate.
4. Gifts. From January 1, 2027, you can give $20,000 per recipient without filing a gift tax return, unless you split gifts with a spouse.
5. Medicare. Income you realize in 2027 sets your 2029 IRMAA tier. The 2027 tier is already fixed by your 2025 return.
6. Saver’s Match. If your modified AGI may fall inside the phase-out ranges, contribute in 2027 to an account that will accept the match. Pre-tax contributions are added back to that income, so they will not move you into a lower range.

When these numbers change nothing for you

A higher contribution limit matters only if you were at the old one. In 2025, 14% of participants in Vanguard-administered plans saved the statutory maximum; among those earning more than $150,000, 51% did. ³⁷

Indexed brackets keep tax roughly level for a household whose income keeps pace with prices. A married couple with $150,000 of wages and the standard deduction owes $15,340 for 2026. On the same wages in 2027 they would owe $14,779; with a 3% raise, $15,769. Their average rate is 10.2% in both years. The drop on unchanged income is an inflation adjustment, and in real terms their tax is about the same.

This page covers federal figures only. State income tax rules are separate.

Frequently asked questions

What are the 2027 federal income tax brackets?

The rates stay at 10%, 12%, 22%, 24%, 32%, 35% and 37%. For single filers, 12% starts above $12,800, 22% above $52,025, 24% above $109,125, 32% above $208,325, 35% above $264,550 and 37% above $661,375. For married couples filing jointly, the thresholds are $25,600, $104,050, $218,250, $416,650, $529,100 and $793,650. ¹

What is the 0% capital gains threshold for 2027?

Long-term gains and qualified dividends are taxed at 0% while total taxable income, including ordinary income, is at or below $51,050 for single filers and married couples filing separately, $68,350 for heads of household and $102,100 for married couples filing jointly. ¹

What is the 2027 401(k) contribution limit?

The IRS had not published it as of November 8, 2026. The 2026 limit is $24,500, plus $8,000 of catch-up contributions from age 50 or $11,250 at ages 60 to 63. ⁶

What is the 2027 HSA contribution limit?

$4,500 for self-only coverage and $9,000 for family coverage, plus a $1,000 catch-up from age 55. ⁴

What is the standard deduction for 2027?

$16,600 for single filers and married couples filing separately, $24,925 for heads of household and $33,200 for married couples filing jointly, plus $1,700 per married person or $2,100 per unmarried person who is 65 or older or blind. ¹

Do the 2027 brackets apply to the return I file in April 2027?

No. The return you file in 2027 reports 2026 income and uses the 2026 tables. The 2027 tables apply to income earned in 2027, reported in 2028.

When will the 2027 Medicare premiums be announced?

CMS published the 2026 figures on November 14, 2025, and had not published 2027 figures as of November 8, 2026. The Trustees projected $209.50 a month for the 2027 Part B premium. ^{19, 20}

Does moving into a higher bracket raise the tax on all my income?

No. Each rate applies only to the income inside its bracket. The exceptions are income-linked rules outside the brackets: the senior deduction phase-out, Social Security taxation, IRMAA tiers and the ACA credit cliff can make the next dollar cost more than its bracket rate, and IRMAA and the ACA cliff can cost hundreds or thousands of dollars for a single dollar over a threshold.

Key takeaways

• Brackets and the standard deduction rose about 3%. The 0% capital gains rate covers taxable income up to $102,100 for married couples and $51,050 for single filers in 2027.
• Some figures are still pending. The 2027 401(k), IRA and Medicare Part B numbers had not been published as of November 8, 2026.
• The senior deduction phases out per spouse. For a married couple both 65 or older on the standard deduction, each dollar between $152,366 and $250,000 of modified AGI is taxed at 24.64% in the 22% bracket.
• The Saver’s Match is new. Up to $1,000 per person, deposited into a non-Roth account, for modified AGI below $35,500 single or $71,000 joint. That income includes your own pre-tax retirement contributions.
• Several thresholds are fixed in law. NIIT, Social Security benefit taxation, the $3,000 loss limit and the home sale exclusion lose real value every year.

Related guides

• Roth Conversion Calculator: How Much to Convert Each Year tests bracket-filling conversions over a full retirement.
• Tax-Aware Decumulation: A Guide for Self-Directed High Earners sequences withdrawals around brackets, NIIT, IRMAA and ACA credits.
• There Are Only Four Things You Can Do With a Capital Gain covers what to do with appreciated holdings.
• The HSA Investing Strategy: Triple Tax Advantage for High Earners explains why the HSA is usually the first account to fill.
• The Tax-Advantaged Trifecta: Mega Backdoor Roth, Backdoor Roth IRA, and HSA covers the accounts above the standard 401(k) limit.
• The ACA Subsidy Cliff Is Back: Health Insurance for Early Retirees in 2026 covers the 400% income limit for Marketplace credits.

Sources

1. Internal Revenue Service. Revenue Procedure 2026-35, 2027 inflation adjustments (sections cited in the text). irs.gov
2. Internal Revenue Service. IR-2026-133, “IRS releases tax inflation adjustments for tax year 2027,” November 5, 2026. irs.gov
3. Internal Revenue Service. Revenue Procedure 2025-32, 2026 inflation adjustments, sections 2.14 and 4. irs.gov
4. Internal Revenue Service. Revenue Procedure 2026-24, 2027 HSA and high-deductible health plan limits, Internal Revenue Bulletin 2026-25. irs.gov
5. Internal Revenue Service. “COLA increases for dollar limitations on benefits and contributions” (checked November 8, 2026). irs.gov
6. Internal Revenue Service. Notice 2025-67, 2026 limitations adjusted as provided in section 415(d). irs.gov
7. Internal Revenue Service. “How much salary can you defer if you’re eligible for more than one retirement plan?” irs.gov
8. Internal Revenue Service. Notice 2026-48, Saver’s Match, Internal Revenue Bulletin 2026-35. irs.gov
9. 26 U.S.C. 6433(d)(2) (testing period) and (f)(1) (modified adjusted gross income for the Saver’s Match). law.cornell.edu
10. Duflo, E., Gale, W., Liebman, J., Orszag, P., and Saez, E. “Saving Incentives for Low- and Middle-Income Families: Evidence from a Field Experiment with H&R Block.” Quarterly Journal of Economics, 2006 (NBER Working Paper 11680). nber.org
11. Internal Revenue Service. Notice 2025-68, Trump accounts. irs.gov
12. Internal Revenue Service. Publication 590-A, Contributions to Individual Retirement Arrangements, rollovers from a 529 plan. irs.gov
13. 26 U.S.C. 529(c)(3)(E), rollovers to Roth IRAs from long-term qualified tuition programs. law.cornell.edu
14. 26 U.S.C. 408A(c)(2) and (c)(3)(E), Roth IRA contribution limits and the 529 rollover exception to the income phase-out. law.cornell.edu
15. Internal Revenue Service. Notice 2026-05, HSA changes under the 2025 law (bronze and catastrophic plans, direct primary care). irs.gov
16. Internal Revenue Service. Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. irs.gov
17. Centers for Medicare & Medicaid Services. Premium Adjustment Percentage, Maximum Annual Limitation on Cost Sharing, and Required Contribution Percentage for 2027, January 29, 2026. cms.gov
18. Social Security Administration. “Cost-of-Living Increase and Other Determinations for 2027,” Federal Register, October 26, 2026 (FR Doc. 2026-21796). govinfo.gov
19. Centers for Medicare & Medicaid Services. “2026 Medicare Parts A & B Premiums and Deductibles,” November 14, 2025. cms.gov
20. Boards of Trustees. 2026 Annual Report of the Medicare Trustees, section III.C and Table V.E2. cms.gov
21. Centers for Medicare & Medicaid Services. CY 2027 Medicare Advantage and Part D Rate Announcement, April 6, 2026, Attachment V. cms.gov
22. 20 CFR 418.1135, the tax year used to determine the income-related monthly adjustment amount. ecfr.gov
23. Internal Revenue Service. Revenue Procedure 2026-26, 2027 applicable percentage table for the premium tax credit. irs.gov
24. Internal Revenue Service. “Questions and answers on the premium tax credit.” irs.gov
25. Public Law 119-21 (the 2025 tax law), sections 70103 (senior deduction), 70111 (itemized deduction limit), 70120 (SALT), 70201-70203 (tips, overtime, car loan interest), 70424-70425 (charitable deductions). congress.gov
26. Internal Revenue Service. Schedule 1-A (Form 1040), Additional Deductions, Part V, lines 31-37. irs.gov
27. Internal Revenue Service. Internal Revenue Manual 21.6.4, state and local tax deduction limits by year. irs.gov
28. 26 U.S.C. 164(b)(6)-(7), the SALT limitation, its phase-out and the amounts for married individuals filing separately. law.cornell.edu
29. 26 U.S.C. 2503(b)(2), inflation adjustment and rounding of the annual gift exclusion. law.cornell.edu
30. Internal Revenue Service. “Net Investment Income Tax”; 26 U.S.C. 1411. irs.gov
31. 26 U.S.C. 86(c) and statutory notes (Pub. L. 98-21 sec. 121(g); Pub. L. 103-66 sec. 13215(d)). law.cornell.edu
32. Davies, P. Social Security: Taxation of Benefits. Congressional Research Service RL32552, November 1, 2019. everycrsreport.com
33. Gravelle, J. An Analysis of the Tax Treatment of Capital Losses. Congressional Research Service RL31562, September 30, 2022. everycrsreport.com
34. 26 U.S.C. 121(b) and statutory note on the effective date of Pub. L. 105-34 sec. 312. law.cornell.edu
35. Internal Revenue Service. Publication 936, Home Mortgage Interest Deduction. irs.gov
36. U.S. Bureau of Labor Statistics. Consumer Price Index for All Urban Consumers (CPI-U), U.S. city average, all items, series CUUR0000SA0. bls.gov
37. Vanguard. How America Saves 2026, Figure 38. workplace.vanguard.com