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The IRS has not yet announced the 2027 tax brackets, but the forecasts are already out, and they point to a bigger adjustment than last year. Bloomberg Tax projects that bracket thresholds will rise about 3.2% for 2027, up from 2.7% for 2026. Separately, a Milliman forecast has the 401(k) deferral limit climbing to $25,500. None of this is official yet. This article lays out the projected 2027 tax brackets, the standard deduction, the retirement limits, and what could still change before the IRS publishes its numbers.
When the IRS usually announces the 2027 tax brackets
The IRS adjusts these figures for inflation every fall, though the date moves around. Last year the 2026 brackets and standard deduction came out in early October, in Revenue Procedure 2025-32, as the New York State Society of CPAs reported. The retirement plan limits followed on November 13, according to the IRS.
This year probably follows a similar pattern. The Milliman forecast, as 401(k) Specialist reported it, assumes official limits will come after the September inflation data, which the government released on October 14. One plan-industry group expects them by mid-November. We checked Tuesday morning, October 20, and found no 2027 announcement from the IRS yet.
The projected 2027 tax brackets
Bloomberg Tax built its projection from the chained consumer price index, the measure the IRS uses for brackets, as CBS News reported. There was a wrinkle: the government shutdown disrupted last October’s data, so Bloomberg used an 11-month average instead. Its 2026 projections ended up matching the IRS’s final numbers, which counts in its favor.
Start with single filers. The 22% bracket would begin at $52,025 instead of this year’s $50,400. The 24% bracket would begin at $109,125, up from $105,700, and the 37% rate would kick in at $661,375 rather than $640,600. Married couples filing jointly get roughly double each figure: the 22% bracket would start at $104,050, up from $100,800, and the top rate at $793,650, up from $768,700. The 10% bracket would end at $12,800 for singles and $25,600 for joint filers.
The standard deduction is projected to reach $33,200 for joint filers and $16,600 for single filers, up from $32,200 and $16,100 this year. That’s $1,000 more for couples and $500 more for individuals. The projection we reviewed didn’t cover heads of household.
What a 3.2% adjustment means for your 2027 tax brackets
Indexing protects you from bracket creep, which is when a raise that only keeps pace with prices pushes more of your income into a higher rate. A quick illustration helps. Say a single filer has $60,000 of taxable income, and it stays flat. Under the 2026 brackets, $9,600 of that is taxed at 22%. Under the projected 2027 brackets, only $7,975 is. The other $1,625 gets taxed at 12%, which saves roughly $162.
That example ignores credits, deductions and state taxes, and real incomes will differ. The point is that the savings come from indexing, not from any rate cut. If your pay rises faster than 3.2%, you can still move into a higher bracket. Our own report on gas prices at $4.33 shows why wages that lag inflation make the adjustment feel small.
Projected retirement limits for 2027
The retirement figures come from a Milliman forecast, which the PSCA summarized in a table. If it holds, the 401(k), 403(b) and 457 limit goes from $24,500 to $25,500. Workers 50 and older could add $8,500 on top, up from $8,000, and those aged 60 to 63 could add $11,750, up from $11,250. The cap on total contributions to a defined contribution plan, employer money included, would rise from $72,000 to $75,000.
The same table raises the prior-year wage threshold for Roth catch-up contributions from $150,000 to $155,000. Above that line, catch-up contributions have to go in as Roth. We didn’t find a 2027 IRA projection in the sources we reviewed. This year’s IRA limit is $7,500, and the IRS moves it in $500 steps, so it might not change at all.
Why September inflation could shift the numbers
Milliman built its forecast on an assumed 0.25% rise in September prices, and its own sensitivity notes are worth knowing. If the real figure came in below 0.04%, the 401(k) limit might stay at $25,000. If it topped 0.35%, the key employee compensation limit could reach $245,000 rather than $240,000.
The Associated Press reported that consumer prices rose 0.6% in September, the biggest monthly jump in five months. That’s well above Milliman’s assumption, although the headline number is seasonally adjusted and the IRS formulas use their own averages. So treat it as a hint, not a calculation: some limits could land at or above the projections. Milliman’s final forecast, due after the CPI release, will be the better guide.
What to do before the official numbers arrive
You don’t need to change anything today because of projected 2027 tax brackets. Withholding and contribution settings can wait for the IRS announcement, and payroll systems usually update in January. If you already max out your 401(k), there may be $1,000 more room next year. If you don’t, a 3.2% raise is a fair moment to nudge your deferral rate up. For the market side of that call, see our look at what the NASDAQ’s worst week since June means for your 401(k).
This is general information, not financial or tax advice. Check your own situation with a qualified tax professional.
What to watch next
Keep an eye out for three things. The IRS will publish the official brackets and standard deduction first. The retirement plan limits usually come later, five weeks later in 2025. Milliman called its latest forecast the second-to-last before the official numbers, so one more is due. If the official numbers differ from the projections, we’ll update this story and say what changed. Until then, treat every figure here as an estimate.
Editor’s take
Modest relief is the best way to describe the 2027 tax brackets. A 3.2% adjustment stops most households from paying more tax just because prices rose, but it doesn’t leave anyone better off, and it trails the 3.7% annual inflation rate reported for September. Plan with the projections. Decide with the IRS’s numbers.
