Bloomberg Tax projects 3.2% inflation increase for 2027 U.S. tax rates

  • Bloomberg Tax projects a 3.2% increase in 2027 federal tax brackets.
  • Married couples’ projected 12% bracket spans $25,601 to $104,050.
  • The IRS has not announced its official inflation-adjusted 2027 brackets.

Bloomberg Tax & Accounting projects that U.S. federal tax brackets will rise 3.2% in 2027, up from a 2.7% increase for 2026, allowing taxpayers to earn more before reaching higher rates. The forecast uses an 11-month average of the chained Consumer Price Index for All Urban Consumers after the Labor Department did not publish October 2025 inflation data during a government shutdown. The IRS has not yet released its official inflation-adjusted brackets, which it typically announces in October or November. Bloomberg Tax projects the 12% bracket for married couples filing jointly will cover taxable income from $25,601 to $104,050, while the standard deduction is expected to rise to $33,200 for joint filers and $16,600 for single filers. The adjustments are designed to limit bracket creep as prices and wages rise.

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