The Internal Revenue Service (IRS) will raise the maximum child tax credit to $2,300 for 2027, alongside higher deductions and tax brackets that taxpayers generally will use on returns filed in 2028.
The seven federal income-tax rates will stay at 10%, 12%, 22%, 24%, 32%, 35% and 37%, with thresholds higher than in 2026. The top 37% rate will apply to taxable income above $661,375 for single filers and $793,650 for married couples filing jointly.
The standard deduction will be $33,200 for married couples filing jointly, $16,600 for single filers and married people filing separately, and $24,925 for heads of household. The 2026 amounts were $32,200, $16,100 and $24,150, respectively. That means the deduction rises by $1,000 for joint filers, $500 for single and married-separate filers, and $775 for heads of household.
The maximum child tax credit increases by $100 from 2026. Its maximum refundable portion will be $1,800, up from $1,700. The maximum earned income tax credit for qualifying taxpayers with three or more qualifying children will reach $8,496, compared with $8,231 in 2026.
The IRS dated its announcement Thursday, Nov. 5, and said the changes cover nearly 70 tax provisions. They apply to income earned in tax year 2027 and generally to returns filed in 2028; 2026 tax figures generally apply to returns filed in 2027. The agency issues tax inflation adjustments each fall.
Axios said annual bracket adjustments can reduce the chance that inflation-driven income growth pushes taxpayers into a higher marginal tax rate. This effect is known as bracket creep.
