Last Updated: November 8, 2026 Reading Time: 6 min

The IRS released the 2027 tax brackets and standard deduction on November 5, 2026, in news release IR-2026-133 and Revenue Procedure 2026-35. For federal employees facing a 0% civilian raise in 2027, the inflation adjustment to the brackets is one of the few things moving in your favor next year. It's small, though, and it's worth seeing in dollars.

Here are the 2027 tax brackets for single and joint filers, the new standard deduction, and what the change is worth to a GS-13 and a FERS annuitant whose income doesn't change.

The 2027 Federal Tax Brackets, Single and Joint

Taxable income over each threshold is taxed at that rate. 2026 thresholds are shown for comparison (IR-2026-133; IR-2025-103).

Rate Single, 2027 Married filing jointly, 2027 Single, 2026 Married filing jointly, 2026
10% $0 to $12,800 $0 to $25,600 $0 to $12,400 $0 to $24,800
12% Over $12,800 Over $25,600 Over $12,400 Over $24,800
22% Over $52,025 Over $104,050 Over $50,400 Over $100,800
24% Over $109,125 Over $218,250 Over $105,700 Over $211,400
32% Over $208,325 Over $416,650 Over $201,775 Over $403,550
35% Over $264,550 Over $529,100 Over $256,225 Over $512,450
37% Over $661,375 Over $793,650 Over $640,600 Over $768,700

Head of household and married filing separately thresholds are in Revenue Procedure 2026-35. We left them out until we've checked them against the IRS document itself; don't assume the separate column equals the single column.

A bracket shift isn't a tax cut on all your income. Only the slices near each threshold move, so the savings are modest.

The 2027 Standard Deduction

Filing status 2026 2027 Change
Married filing jointly $32,200 $33,200 +$1,000
Single, married filing separately $16,100 $16,600 +$500
Head of household $24,150 $24,925 +$775

The IRS release says the 2027 adjustments "generally apply to tax returns filed in 2028." The return you file in spring 2027 still uses the 2026 numbers.

The additional standard deduction for people 65 or older or blind isn't in the release. We'll add it once we've read it in the revenue procedure.

What the 2027 Brackets Are Worth to a GS-13 With No Raise

This is a worked example, not a prediction of your tax. It shows the size of the change when pay stays flat.

Assumptions: GS-13 step 5, Rest of U.S. locality, $120,629 (the 2026 OPM rate) held flat for 2027. 5% goes to traditional TSP ($6,031.45), leaving $114,597.55 of wages, rounded to $114,598 for the table. No FEHB premium, no other income, standard deduction. FERS contributions aren't subtracted because they're after-tax.

Line Single, 2026 Single, 2027 Joint, 2026 Joint, 2027
Wages $114,598 $114,598 $114,598 $114,598
Standard deduction $16,100 $16,600 $32,200 $33,200
Taxable income $98,498 $97,998 $82,398 $81,398
10% slice $1,240.00 $1,280.00 $2,480.00 $2,560.00
12% slice $4,560.00 $4,707.00 $6,911.76 $6,695.76
22% slice $10,581.56 $10,114.06 $0 $0
Federal income tax $16,381.56 $16,101.06 $9,391.76 $9,255.76
  • Single: $280.50 less for the year, about $10.79 per biweekly check if withholding tracked it exactly.
  • Married filing jointly, one earner: $136.00 less for the year, about $5.23 per check.

Why does the single filer gain more? This earner sits in the 22% bracket, and the joint earner sits in the 12% bracket. The single filer's $280.50 comes from three pieces: $500 more deduction taxed at 22% ($110), $1,625 more income taxed at 12% instead of 22% ($162.50), and $400 more taxed at 10% instead of 12% ($8).

The per-check figures are annual tax divided by 26. They aren't withholding predictions. FEHB premium increases for 2027 can move the same paycheck the other way, and a real FEHB premium would also lower the taxable wages above.

FERS Annuitants: Same Brackets, Smaller Change

Retirees use the same rate schedules, and the taxable part of a FERS annuity is ordinary income. In a second example, a single annuitant under 65 with a $60,000 taxable annuity held flat and no other income has taxable income of $43,900 in 2026 and $43,400 in 2027. The tax falls from $5,020 to $4,952, so $68 less for the year.

A cost-of-living adjustment would raise income and offset part of that. Retirees 65 and older get an additional deduction amount we haven't verified for 2027 yet, so this example doesn't include it.

What Else Changed for 2027 That Feds Use

Two other 2027 figures from the same IRS release matter to federal employees:

  • Health care FSA: the salary-reduction limit rises to $3,500, up $100, with a $700 carryover maximum. If you use FSAFEDS, you have to re-elect during Open Season, November 9 to December 14, 2026.
  • Transit benefit: the qualified transportation fringe limit rises to $350 a month, up $10. Agency transit programs weren't addressed in the release.

Still missing: the IRS hadn't posted the 2027 TSP and 401(k) contribution limits when we checked on November 8, 2026. Those come in a separate notice.

Check Your Own Paycheck

Use the Federal Take-Home Pay Calculator to see your federal tax, FERS, TSP and FEHB deductions per paycheck by GS grade, step and locality. It still uses the 2026 tax rules, so treat its tax line as your current baseline; the 2027 brackets above lower it slightly if your pay stays flat.

For the other side of 2027, see what a pay freeze plus the FEHB increase does to net pay by grade.

Frequently Asked Questions

What is the 2027 standard deduction?

$33,200 for married couples filing jointly, $16,600 for single filers and married people filing separately, and $24,925 for heads of household.

Do the 2027 tax brackets apply to the return I file in 2027?

No. They apply to tax year 2027 and generally to returns filed in 2028. Your spring 2027 return uses the 2026 brackets.

Will my federal paycheck go up in January because of the new brackets?

It may, slightly, but the IRS hadn't posted its 2027 withholding tables when we checked, so no paycheck figure can be stated yet. In our GS-13 example the annual tax difference is $136 to $280.50.

Did the tax rates change for 2027?

No. The seven rates are still 10%, 12%, 22%, 24%, 32%, 35% and 37%. Only the income thresholds moved.

Do FERS annuitants use the same brackets?

Yes. The same individual rate schedules apply, and the taxable part of a FERS annuity is taxed as ordinary income.

Sources