2027 Inflation Adjustments: What to Know for Planning

In November 2026, the IRS published its inflation adjustments for tax year 2027 in Revenue Procedure 2026-35. These figures apply to income you earn in 2027 — the return you will file in 2028 — but they are valuable right now as a planning tool. Here is what changed and how to put the numbers to work.

The Headline Numbers for 2027

The standard deduction rises to $16,600 for single filers, $33,200 for married couples filing jointly, and $24,925 for heads of household. The cap on the state and local tax (SALT) deduction rises to about $40,804 for 2027.

Where the Top Rate Begins

The 37% top tax rate will begin above approximately $661,375 in taxable income for single filers and about $793,650 for married couples filing jointly. Knowing where the top brackets start helps high earners time income and deductions across two tax years.

Which Numbers Apply to Your Return

This is the part that trips people up: the return you file in early 2027 covers your 2026 income, and it still uses the 2026 figures — the 2026 standard deduction, the 2026 SALT cap, and the 2026 brackets. The new 2027 adjustments apply only to income you earn during 2027, which you will report on the return you file in 2028. In other words, the figures published this November are for the return you will prepare a year from now — the forms you fill out in early 2027 are still 2026 forms, with 2026 amounts. Do not use the 2027 numbers to estimate a 2026 balance due.

How to Use These Numbers Now

If you make estimated tax payments, the first 2027 estimated payment will be due in April 2027 — the new figures help you size those payments from the start. If you are an employer or run payroll, the adjusted brackets and deduction amounts shape withholding decisions early in the year. And if you are planning a large deductible expense, comparing the 2026 and 2027 standard deductions and caps helps you decide which year the expense belongs in. Planning early also leaves room to adjust: if a figure changes your expected balance or refund, you can act during the year instead of discovering it at filing time.

Plan Your Filing With a Team That Tracks This

Inflation adjustments change every year, and small details decide whether you capture them correctly. The Queens Financial Group prepares returns for individuals and businesses using the right figures for the right tax year — and plans ahead for the years to come. Contact us today for help with your filing, and let us put these numbers to work for you.