Earn $60,000? Your Federal Tax Bill Could Drop by $171 in 2027 Under Projected New Brackets

A potential change to US tax brackets in 2027 could leave some taxpayers paying hundreds of dollars less in federal income tax, depending on their taxable income. A single taxpayer with $60,000 in taxable income could pay about $171 less under projected 2027 thresholds than under the official 2026 thresholds, assuming all other tax circumstances remain unchanged.

The figures are not final. Bloomberg Tax projected on 11 September that federal income-tax brackets could rise by about 3.2% in 2027 as part of the annual inflation adjustment.

Inflation Could Push Tax Brackets Higher

The projected changes come as US consumer prices continue to rise. The Bureau of Labor Statistics reported that the Consumer Price Index increased 3.4% over the 12 months to August 2026, while prices rose 0.4% in August on a seasonally adjusted basis.

However, the 3.4% CPI figure is not itself the measure used to determine the annual federal tax-bracket adjustment. The IRS uses an inflation-indexing formula based on chained CPI.

Bloomberg Tax's projection is based on that measure. Because October 2025 inflation data was unavailable following the government shutdown, Bloomberg Tax used an 11-month average, according to CBS News. The projected 3.2% increase would not mean federal tax rates themselves are rising. Instead, the income thresholds for existing rates would move higher.

What the 2027 Brackets Could Look Like

For single taxpayers, the projected 2027 taxable-income thresholds are:

• 10%: Up to $12,800
• 12%: $12,801 to $52,025
• 22%: $52,026 to $109,125
• 24%: $109,126 to $208,325
• 32%: $208,326 to $264,550
• 35%: $264,551 to $661,375
• 37%: Above $661,375

For filing jointly, the projected thresholds are $25,600, $104,050, $218,250, $416,650, $529,100 and $793,650, with income above the final threshold remaining subject to the 37% rate. The seven marginal rates would remain 10%, 12%, 22%, 24%, 32%, 35% and 37%. For comparison, the IRS's official 2026 figures put the corresponding single-filer thresholds at $12,400, $50,400, $105,700, $201,775, $256,225 and $640,600.

How Much Could Taxpayers Save?

The effect would depend on taxable income and how much falls within each bracket. A single taxpayer with $60,000 of taxable income would owe about $7,912 under the 2026 thresholds. Under the projected 2027 thresholds, the liability would be about $7,741.50, a difference of roughly $170.50.

At $100,000 of taxable income, the difference would also be about $170.50 because both amounts remain within the 22% bracket. At $200,000, the projected difference rises to about $239.

For married couples filing jointly, a household with $200,000 of taxable income would see a projected difference of about $341. At $400,000, the difference would be about $478. These examples assume taxable income remains unchanged and do not account for deductions, credits, payroll taxes or other provisions affecting a final tax bill.

Tax Brackets Are Not Tax Rates

The US uses a marginal tax system, meaning different portions of taxable income are taxed at different rates. Reaching a higher bracket does not mean a taxpayer's entire income suddenly becomes subject to that rate. If the projected 2027 thresholds become official, taxpayers could have more taxable income within lower brackets before reaching the next marginal rate. The impact would vary according to taxable income, filing status, and other parts of the tax system.

The Standard Deduction Could Also Change

Bloomberg Tax also projects the standard deduction for 2027 to rise. For taxpayers other than married couples filing jointly and surviving spouses, the projection is $16,600, compared with the official 2026 amount of $16,100. For married couples filing jointly, the projected 2027 standard deduction is $33,200, compared with $32,200 for 2026.

Because the standard deduction reduces taxable income for taxpayers who claim it, a change could affect a household's final tax calculation separately from the bracket adjustments.

What Happens Next

The projected figures are an early guide rather than final IRS provisions. The IRS has published its official 2026 tax brackets, but the 2027 inflation-adjusted figures have not yet been announced. The agency typically releases the new amounts later in the year.

If the projections are adopted, higher income thresholds could mean some taxpayers pay less federal income tax than under the 2026 thresholds, assuming their taxable income and other circumstances remain unchanged. The effect on individual pay packets could differ because take-home pay also depends on withholding, deductions, credits, and other financial circumstances.

For now, the 3.2% projection indicates how inflation could shift federal tax brackets in 2027. Taxpayers should wait for the IRS's official figures before treating the projected amounts as final.