Projected 2027 federal tax brackets and other inflation-adjusted amounts

By Michael Henaghan, JD, LLM, John Buchanan, JD, LLM, and Alicia Ernst, JD

Wolters Kluwer projects higher 2027 federal tax brackets and key inflation-adjusted amounts, though missing CPI data may affect final IRS figures

Wolters Kluwer has projected federal tax brackets and other inflation-adjusted amounts for the 2027 tax year. Inflation in 2026 has rebounded somewhat after years of reductions, resulting in higher increases in the ranges for the tax brackets, standard deduction amounts, Code Sec. 179 election limitations, and many other tax-related amounts for 2026.

The 2025 federal government shutdown has also caused a potential wrinkle in projecting numbers for 2027. The calculation of inflation-adjusted amounts for a given year relies on a 12-month average of CPI for the period ending in August of the prior year. However, due to the shutdown, the October 2025 CPI was never released. The Wolters Kluwer 2027 projections, therefore, are relying on an 11-month average for September 2025 through August 2026, skipping October 2025. It is not clear how the IRS intends to handle this missing month, so official inflation-adjusted amounts may differ from these projections.

2026 post-filing season update:  OBBBA implementation, refund trends, and potential tax legislation

Projected inflation-adjusted amounts for the 2027 tax year 

On September 11, 2026, the Bureau of Labor Statistics released Consumer Price Index amounts for August 2026, enabling the calculation of 2027 amounts.

Compare the trend: Review how projected inflation adjustments evolved from 2025 to 2027

The projected individual tax brackets for 2027 are as follows:

Married filing jointly (and surviving spouses)

Married individuals filing separate returns

Unmarried individuals (other than surviving spouses and heads of households)

Head of household

Additional projected inflation adjusted amounts for 2027 include:

• Threshold amounts for the Section 199A qualified business income deduction are projected to be $416,650 for joint filers and $208,300 for all other filers
• Standard deduction amounts are projected to be $33,200 for joint filers, $24,950 for heads of households, and $16,600 for all other taxpayers
• The Code Sec. 179 limitation on the election to expense depreciable assets are projected to be $2.64 million per asset or $4.23 million per year
• The estate tax exclusion is $15,480,000, resulting in a unified credit of $6,137,800

Retirement planning update: Explore the latest retirement plan cost-of-living adjustments

Official inflation adjustments for the 2027 tax year

The IRS should release official amounts for the 2027 tax year in late October or early November. Cost of living adjustments for retirement planning are based on a different set of numbers released by the Bureau of Labor Statistics and are typically released in late October. Amounts for the 2026 tax year were released on October 9, 2025. 

Keep up to date with CCH® AnswerConnect

CCH® AnswerConnect helps accounting professionals stay current on changing tax rules with timely analysis, expert insights, and authoritative guidance.

As projected 2027 tax brackets and other inflation-adjusted amounts evolve into official IRS figures, AnswerConnect makes it easy to track updates, understand their impact, and advise clients with confidence.

Download a free trial copy today.