In 2027, the federal income tax bracket of 37% is expected to apply to higher income levels than currently observed. Preliminary estimates suggest that for married couples filing jointly, this bracket may begin at taxable incomes exceeding $793,650. For single taxpayers, the threshold could start at more than $661,375. It is important to note that these figures are early estimates and have not yet been confirmed by the IRS.
Bloomberg Tax released its 2027 tax projections on Tuesday. Its estimate uses a 3.2% inflation adjustment to calculate possible 2027 tax brackets. People planning a Roth conversion could look at the projected 24% bracket. These are planning scenarios, not guarantees of the final 2027 tax rules. Long-term capital-gains tax brackets are also being projected for 2027. A separate estimate from tax analyst Kelly Phillips Erb gives possible 2027 thresholds for long-term capital gains. There is more uncertainty around this year’s early 2027 estimates. For this estimate, October 2025 data were unavailable. The projected $793,650 threshold for married couples and $661,375 threshold for single filers are not yet official IRS numbers. The same applies to the projected 24% bracket, standard deduction and capital-gains thresholds. Taxpayers can use the estimates to compare possible 2027 income and investment decisions. The figures should be updated once the IRS officially releases its 2027 inflation-adjusted tax brackets.
Bloomberg Tax therefore used an 11-month average of chained consumer-price data, instead of the usual 12-month window. The IRS usually announces the official inflation-adjusted tax brackets for the next year in the fall. The final figures will come after the full statutory calculation period is completed. Bloomberg Tax made the projection based on the available inflation data. Investors exercising nonqualified stock options could also consider the possible higher threshold. People expecting a large bonus may use the projected brackets when deciding when income should be received. Taxpayers would also need to keep enough cash available to pay the resulting tax. Bloomberg Tax normally uses inflation data over a specific calculation period to project the coming year’s tax figures. That makes the early numbers subject to change. For now, taxpayers should treat the numbers as planning estimates.
