Deorbit Plan

What changed for 2027: tax brackets, limits, Social Security and Medicare

By the Deorbit Plan editorial team, a Berrydyne program · Last reviewed November 2026 · 7 min read

The IRS, the Social Security Administration and HHS have published most of the 2027 figures that matter for retirement planning. Below, every published change from 2026 is in one table, followed by what the new tax tables do to the federal income tax of four sample retired households. Figures that are not yet out are marked “not yet published” in the table. We do not estimate them.

Every published change, 2026 to 2027

Published 2027 figures beside 2026. “Not yet published” rows show the 2026 figure only. Each row cites the source of its 2027 figure (or, while pending, of its 2026 figure) after the label, and the 2026 source after the 2026 figure when it differs.
Figure20262027Change
Standard deductions
Standard deduction, single[1]$16,100[2]$16,600+$500
Standard deduction, married filing jointly[1]$32,200[2]$33,200+$1,000
Standard deduction, head of household[1]$24,150[2]$24,925+$775
Standard deduction, married filing separately[1]$16,100[2]$16,600+$500
Age-65 addition, married (per spouse)[1]$1,650[2]$1,700+$50
Age-65 addition, single or head of household[1]$2,050[2]$2,100+$50
Senior deduction per person 65+ (2025–2028)[3]$6,000$6,000no change
Capital gains: 0% and 15% rate thresholds (taxable income)
0% rate up to, single[1]$49,450[2]$51,050+$1,600
15% rate up to, single[1]$545,500[2]$563,200+$17,700
0% rate up to, married filing jointly[1]$98,900[2]$102,100+$3,200
15% rate up to, married filing jointly[1]$613,700[2]$633,600+$19,900
0% rate up to, head of household[1]$66,200[2]$68,350+$2,150
15% rate up to, head of household[1]$579,600[2]$598,400+$18,800
0% rate up to, married filing separately[1]$49,450[2]$51,050+$1,600
15% rate up to, married filing separately[1]$306,850[2]$316,800+$9,950
Retirement plans and IRAs
401(k)/403(b)/457(b) employee deferral[4]$24,500Not yet publishedn/a
Catch-up, age 50+[4]$8,000Not yet publishedn/a
Catch-up, ages 60–63[4]$11,250Not yet publishedn/a
IRA contribution limit[4]$7,500Not yet publishedn/a
IRA catch-up, age 50+[4]$1,100Not yet publishedn/a
QCD limit per IRA owner[4]$111,000Not yet publishedn/a
Health savings accounts
HSA limit, self-only coverage[5]$4,400[6]$4,500+$100
HSA limit, family coverage[5]$8,750[6]$9,000+$250
HSA catch-up, age 55+ (statutory)[6]$1,000$1,000no change
Gift and estate tax
Annual gift exclusion, per recipient[1]$19,000[2]$20,000+$1,000
Estate and lifetime gift exclusion, per person[1]$15,000,000[7]$15,480,000+$480,000
Social Security
Taxable maximum (wage base)[8]$184,500$192,300+$7,800
PIA bend point 1 (monthly)[9]$1,286[10]$1,340+$54
PIA bend point 2 (monthly)[9]$7,749[10]$8,077+$328
Earnings-test exempt amount, under full retirement age[11]$24,480$25,560+$1,080
Earnings-test exempt amount, year of full retirement age[11]$65,160$67,920+$2,760
Cost-of-living adjustment paid from January 2027[12]n/a3.6%n/a
ACA marketplace coverage (400% cliff)
Poverty guideline, household of 1[13]$15,650[14]$15,960+$310
Poverty guideline, each additional person[13]$5,500[14]$5,680+$180
400% cliff, household of 1[13]$62,600[14]$63,840+$1,240
400% cliff, household of 2[13]$84,600[14]$86,560+$1,960
Applicable percentage at the cliff band (top)[15]9.96%[16]10.22%+0.26 pts
Applicable percentage, lowest band[15]2.10%[16]2.15%+0.05 pts
Medicare
Part B standard premium (monthly)[17]$202.90Not yet publishedn/a
Part D base beneficiary premium (monthly)[18]$38.99[19]$41.33+$2.34
IRMAA first threshold, individual return[17]$109,000Not yet publishedn/a
IRMAA first threshold, joint return[17]$218,000Not yet publishedn/a

The tax brackets moved too. Each bracket’s upper edge rose for every filing status; the full ranges are on the 2027 tax brackets page, and the limits, Medicare and ACA figures each have their own page: contribution limits, IRMAA tiers and ACA numbers. All of it on one printable page: 2027 key retirement numbers.

Top of each ordinary-income bracket (taxable income), 2026 → 2027[1].
RateSingleMarried filing jointlyHead of householdMarried filing separately
10%$12,400 → $12,800$24,800 → $25,600$17,700 → $18,250$12,400 → $12,800
12%$50,400 → $52,025$100,800 → $104,050$67,450 → $69,650$50,400 → $52,025
22%$105,700 → $109,125$211,400 → $218,250$105,700 → $109,100$105,700 → $109,125
24%$201,775 → $208,325$403,550 → $416,650$201,750 → $208,300$201,775 → $208,325
32%$256,225 → $264,550$512,450 → $529,100$256,200 → $264,550$256,225 → $264,550
35%$640,600 → $661,375$768,700 → $793,650$640,600 → $661,350$384,350 → $396,825

What it means in dollars: four sample households

Each household below is run through the same federal tax function the simulator uses, once with the 2026 tables[2] and once with the 2027 tables[1]. Income is held at the same nominal dollars in both years, so the difference is the effect of the new brackets, deductions and capital-gains thresholds alone.

Federal income tax before credits, 2026 vs 2027 tables, same nominal income.
HouseholdIncome20262027Change
Single, 67$60,000$3,142$3,068−$74
Couple, both 67$90,000$3,176$3,028−$148
Couple, both 67$160,000$10,791$9,998−$793
Couple, both 60$120,000$7,640$7,504−$136

A single retiree, 67, with $24,000 of Social Security and $36,000 of IRA and pension income ($60,000 in all).

Step2026 tables2027 tablesChange
Taxable part of Social Security$16,400$16,400no change
Adjusted gross income$52,400$52,400no change
Standard deduction$16,100$16,600+$500
Age-65 additions$2,050$2,100+$50
Senior deduction (after phase-out)$6,000$6,000no change
Total deductions$24,150$24,700+$550
Taxable income$28,250$27,700−$550
Tax on ordinary income$3,142$3,068−$74
Tax on gains and qualified dividends$0$0no change
Federal income tax$3,142$3,068−$74

$16,400 of the $24,000 in benefits is taxable in both years: the Social Security thresholds are fixed in the statute and not indexed[20]. The 2027 change in federal tax: −$74.

A married couple filing jointly, both 67, with $40,000 of Social Security and $50,000 of IRA and pension income ($90,000 in all).

Step2026 tables2027 tablesChange
Taxable part of Social Security$28,100$28,100no change
Adjusted gross income$78,100$78,100no change
Standard deduction$32,200$33,200+$1,000
Age-65 additions$3,300$3,400+$100
Senior deduction (after phase-out)$12,000$12,000no change
Total deductions$47,500$48,600+$1,100
Taxable income$30,600$29,500−$1,100
Tax on ordinary income$3,176$3,028−$148
Tax on gains and qualified dividends$0$0no change
Federal income tax$3,176$3,028−$148

$28,100 of the $40,000 in benefits is taxable in both years: the Social Security thresholds are fixed in the statute and not indexed[20]. The 2027 change in federal tax: −$148.

A married couple filing jointly, both 67, with $48,000 of Social Security, $92,000 of IRA and pension income and $20,000 of qualified dividends and long-term gains ($160,000 in all).

Step2026 tables2027 tablesChange
Taxable part of Social Security$40,800$40,800no change
Adjusted gross income$152,800$152,800no change
Standard deduction$32,200$33,200+$1,000
Age-65 additions$3,300$3,400+$100
Senior deduction (after phase-out)$11,664$11,664no change
Total deductions$47,164$48,264+$1,100
Taxable income$105,636$104,536−$1,100
Tax on ordinary income$9,780$9,632−$148
Tax on gains and qualified dividends$1,010$365−$645
Federal income tax$10,791$9,998−$793

$40,800 of the $48,000 in benefits is taxable in both years: the Social Security thresholds are fixed in the statute and not indexed[20]. AGI of $152,800 is above the $150,000 line, so each senior deduction shrinks by 6 cents per dollar over it, to $5,832 per person. The $20,000 of gains stacks on top of $84,536 of taxable ordinary income in 2027 ($85,636 in 2026), so the higher 2027 0% threshold shelters more of it. The 2027 change in federal tax: −$793.

A married couple filing jointly, both 60, with $100,000 of IRA and pension income and $20,000 of qualified dividends and long-term gains ($120,000 in all), not yet on Social Security or Medicare.

Step2026 tables2027 tablesChange
Taxable part of Social Security$0$0no change
Adjusted gross income$120,000$120,000no change
Standard deduction$32,200$33,200+$1,000
Age-65 additions$0$0no change
Senior deduction (after phase-out)$0$0no change
Total deductions$32,200$33,200+$1,000
Taxable income$87,800$86,800−$1,000
Tax on ordinary income$7,640$7,504−$136
Tax on gains and qualified dividends$0$0no change
Federal income tax$7,640$7,504−$136

The $20,000 of gains stacks on top of $66,800 of taxable ordinary income in 2027 ($67,800 in 2026). The total stays under the 0% ceiling in both years, so all of the gains are taxed at 0% either way. Before Medicare this couple would buy marketplace coverage, but with $120,000 of MAGI they are above the 400% line for a household of two in both years ($84,600 for 2026 coverage, $86,560 for 2027), so no premium tax credit either way. The 2027 change in federal tax: −$136.

Assumptions

  • Incomes are held equal in nominal dollars in both years; nothing is inflated or projected.
  • Federal income tax only, before credits, computed with the rate schedules (the IRS tax table rounds lower incomes into bands, so a filed return can differ by a few dollars). No state tax.
  • Everyone takes the standard deduction, plus the age-65 additions and the senior deduction where they qualify (ages are at the end of the year). IRA and pension income is fully taxable.
  • The taxable part of Social Security follows the IRS Publication 915 worksheet, counting all other income including gains[20].
  • No household reaches the 3.8% net investment income tax.

Try it in Deorbit Plan

The simulator still uses 2026 rules. Its tax engine is built on the 2026 figures and indexes them along each simulated inflation path; the 2027 figures on this page are published for reference and will become the simulator’s base when it rolls over to 2027.

Until it rolls over, a plan you run there prices 2027 and later years with the 2026 tables indexed by each path’s simulated inflation, not with the 2027 figures above. The Roth conversion calculator uses the same tax function for a single year, and how capital gains stack explains the 0% threshold effect in the third household.

This page explains how the rules work. It is not financial, tax or investment advice. Read the disclaimer.

See how this plays out with your own numbers. Try it in the simulator →

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References