2027 Tax Brackets for Retirees
By Hans Goldstein, founder, Retirement Literacy Foundation. Education only; nothing is sold.
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2027 federal income tax brackets Projected
The rates stay the same: 10%, 12%, 22%, 24%, 32%, 35% and 37%. The 2025 tax law made them permanent, so the old "rates go up in 2026" warning no longer applies. What changes each year is where each bracket starts, which moves up with inflation (about 3.2% for 2027).
Married filing jointly (taxable income)
| Rate | 2027 (projected) | 2026 (official) |
|---|---|---|
| 10% | $0 to $25,600 | $0 to $24,800 |
| 12% | $25,601 to $104,050 | $24,801 to $100,800 |
| 22% | $104,051 to $218,250 | $100,801 to $211,400 |
| 24% | $218,251 to $416,650 | $211,401 to $403,550 |
| 32% | $416,651 to $529,100 | $403,551 to $512,450 |
| 35% | $529,101 to $793,650 | $512,451 to $768,700 |
| 37% | $793,651 and up | $768,701 and up |
Single (taxable income)
| Rate | 2027 (projected) | 2026 (official) |
|---|---|---|
| 10% | $0 to $12,800 | $0 to $12,400 |
| 12% | $12,801 to $52,025 | $12,401 to $50,400 |
| 22% | $52,026 to $109,125 | $50,401 to $105,700 |
| 24% | $109,126 to $208,325 | $105,701 to $201,775 |
| 32% | $208,326 to $264,550 | $201,776 to $256,225 |
| 35% | $264,551 to $661,375 | $256,226 to $640,600 |
| 37% | $661,376 and up | $640,601 and up |
How we project these: the 10% and 37% bracket edges are the Bloomberg Tax projection (September 2026). The middle edges are our calculation with the IRS chained-CPI formula, which reproduces Bloomberg's published edges exactly. Final IRS figures can differ by $25 to $50.
2027 standard deduction, the 65+ amount and the senior deduction
| Deduction | 2026 (official) | 2027 | Status |
|---|---|---|---|
| Standard deduction, single | $16,100 | $16,600 | Projected |
| Standard deduction, married filing jointly | $32,200 | $33,200 | Projected |
| Standard deduction, head of household | $24,150 | about $24,950 | Projected |
| Extra for age 65+ (or blind), single or head of household | $2,050 | $2,100 | Projected |
| Extra for age 65+ (or blind), each married spouse | $1,650 | $1,700 | Projected |
| Senior deduction, per person 65+ (tax years 2025 through 2028) | $6,000 | $6,000 | Set by law |
| Total, single 65+ (MAGI under $75,000) | $24,150 | $24,700 | Projected |
| Total, married couple both 65+ (MAGI under $150,000) | $47,500 | $48,600 | Projected |
The $6,000 senior deduction Set by law is separate from the standard deduction and you get it whether or not you itemize. It shrinks by 6% of your modified adjusted gross income over $75,000 (single) or $150,000 (joint) and is gone at $175,000 or $250,000. Each spouse 65 or older gets one, married couples must file jointly to claim it, and it is not indexed. It ends after tax year 2028, so 2026, 2027 and 2028 are the last three years. A Roth conversion or a large capital gain can phase it out, which is one reason to size those carefully.
2027 capital gains brackets: the 0% and 15% lines Projected
| Long-term gains and qualified dividends | 2027 single | 2027 joint | 2026 single | 2026 joint |
|---|---|---|---|---|
| 0% rate if taxable income is up to | $51,050 | $102,100 | $49,450 | $98,900 |
| 15% rate up to | $563,200 | $633,600 | $545,500 | $613,700 |
| 20% rate | above that | above that | above that | above that |
The 0% line is measured on taxable income, after deductions, and your ordinary income (pensions, IRA withdrawals, the taxable part of Social Security) fills it first; gains sit on top. Because a married couple both 65 or older can deduct about $48,600 in 2027 (projected), the 0% line effectively starts that much higher for them. Watch Social Security: extra gains can make more of your benefit taxable, which eats into the same room.
Other 2027 numbers retirees use
| Item | 2026 | 2027 | Status |
|---|---|---|---|
| Qualified charitable distribution (QCD) limit, age 70½+ | $111,000 Official | about $114,000 | Projected |
| Net investment income tax (3.8%) applies above MAGI of | $200,000 single / $250,000 joint | Same | Set by law |
| Required minimum distributions start at | 73 (born 1951 to 1959); 75 (born 1960 or later) | Same. If you were born in 1954, 2027 is your first RMD year | Set by law |
| Social Security taxation thresholds (provisional income) | $25,000 / $34,000 single; $32,000 / $44,000 joint | Same, never indexed | Set by law |
QCD: the 2026 limit is from IRS Notice 2025-67; the 2027 figure is a Bloomberg Tax projection until the IRS notice, usually in November.
What the 2027 numbers mean for retirees
Inflation adjustments mean the same income is taxed a little less in 2027 than in 2026. For retirees, a few things matter more than the headline brackets:
- Room to fill a bracket. If you are doing Roth conversions, the top of the 12% and 22% brackets is where many people stop. Higher bracket edges in 2027 mean a little more can be converted at the same rate. The Roth conversion calculator shows how much fits.
- The senior deduction window. The $6,000 per-person deduction lasts only through 2028. Because it phases out with income, it rewards keeping income under $75,000 (single) or $150,000 (joint), which can pull against a large conversion in the same year.
- The lines that are not in the brackets. The tax brackets are not the only income cliffs. Medicare IRMAA (see the 2027 IRMAA brackets), the 3.8% net investment income tax and the ACA premium credit cliff for people under 65 (see the ACA subsidy cliff guide) can each cost more than the bracket itself.
- Social Security. The provisional income thresholds that decide how much of your benefit is taxable are not indexed, so they do not move with the brackets. Every COLA makes them bite a little harder.
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RMDs and QCDs in 2027
Required minimum distributions start at 73 for anyone born from 1951 through 1959 and at 75 for anyone born in 1960 or later. If you were born in 1954 you turn 73 in 2027, so 2027 is your first RMD year. You can delay that first withdrawal until April 1, 2028, but then two RMDs land in 2028, which can push you into a higher bracket or an IRMAA line.
Once you are 70½, a qualified charitable distribution (QCD) sent straight from your IRA to a charity counts toward your RMD but is left out of your income. That keeps it out of adjusted gross income, which also helps with IRMAA and the senior deduction phase-out. The QCD limit is indexed each year and the 2027 figure comes with the IRS retirement plan limits in November.
When the official 2027 figures come out
- Mid to late October 2026: the IRS publishes the 2027 brackets, standard deduction, 65+ amount, capital gains lines and estate and gift amounts in a revenue procedure.
- Early to mid November 2026: the IRS publishes 2027 retirement plan limits, including 401(k), IRA and QCD limits.
- December 31, 2026: last day for 2026 moves such as Roth conversions, gains, QCDs and your 2026 RMD.
- April 15, 2028: filing deadline for the 2027 tax year, the year these brackets apply to.
Sources
- IRS, Tax inflation adjustments for tax year 2026 (2026 brackets and deductions)
- IRS, Rev. Proc. 2025-32 (2026 brackets, capital gains thresholds)
- IRS, Notice 2025-67 (2026 QCD limit $111,000)
- IRS, Tax deductions for working Americans and seniors (the $6,000 senior deduction)
- IRS, Required minimum distribution FAQs
- Taxgirl (Bloomberg Tax projection), First look at 2027 tax brackets and standard deduction (September 2026)
Checked October 4, 2026. 2027 brackets, deductions and capital gains lines are projections until the IRS publishes its revenue procedure; the senior deduction, NIIT thresholds and RMD ages are set by law.
Get the official 2027 tax brackets the day the IRS publishes them
The IRS usually releases the 2027 brackets, standard deduction and capital gains lines in mid to late October. We send one short email that day with everything a retiree needs on one page. Add your mobile if you also want a text.
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Frequently asked questions
What are the 2027 tax brackets?
The rates stay at 10%, 12%, 22%, 24%, 32%, 35% and 37%. For married couples filing jointly the 12% bracket is projected to end at $104,050 of taxable income and the 22% bracket at $218,250; the 37% rate starts above $793,650. The IRS usually publishes the official numbers in mid to late October.
What is the 2027 standard deduction?
$33,200 for married couples filing jointly, $16,600 for single filers (projected). People 65 or older add $2,100 (single) or $1,700 per spouse (married) (projected), and can also claim the separate $6,000 senior deduction.
How much is the senior deduction in 2027?
$6,000 per person age 65 or older, or $12,000 for a married couple who both qualify. It shrinks by 6% of modified adjusted gross income above $75,000 (single) or $150,000 (joint), is gone at $175,000 or $250,000, and applies only for tax years 2025 through 2028.
Does the 2025 tax law make Social Security tax-free?
No. Social Security is still taxed under the same provisional income rules as before. The law added the temporary $6,000 senior deduction, which lowers taxable income for many retirees but does not change how much of the benefit is counted.
What is the 0% capital gains bracket for 2027?
Long-term gains and qualified dividends are taxed at 0% when taxable income is up to $102,100 for married couples filing jointly or $51,050 for single filers (projected).
What is the QCD limit for 2027?
The 2026 limit is $111,000 per person (official). The 2027 limit is projected at about $114,000; the IRS publishes it with the other retirement plan limits, usually in November.
When does the IRS release the 2027 tax brackets?
Usually in mid to late October, in a revenue procedure with the brackets, standard deduction and capital gains thresholds. 401(k), IRA and QCD limits come in a separate notice, usually in November.
Want to run these numbers for your own situation?
The Retirement Literacy Foundation runs free retirement classes across Southern California on Social Security timing, taxes in retirement, and how to turn savings into income. No products are sold at our classes.
The Retirement Literacy Foundation is a 501(c)(3) non-profit. This guide is general financial education, not individualized investment, tax, or insurance advice. Figures are illustrative and change with income thresholds and your personal situation. Consider speaking with a licensed professional before making decisions.
Hans Goldstein
Founder & Executive Director · Retirement Literacy Foundation, a 501(c)(3) non-profit
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