The IRS has updated the federal income tax brackets for the 2027 tax year, lifting the thresholds to account for inflation. Financial advisor Dan Sheehan says the changes "help protect taxpayers from 'bracket creep,' where inflation driven wage increases can push more income into higher tax brackets without a corresponding increase in purchasing power." The standard deductions will rise to $16,600 for single filers and $33,200 for married couples filing jointly. Related provisions like capital gains thresholds and gift and estate tax exemptions also get a boost. READ MORE