How IRS’s 2027 tax brackets may change, according to new projections

(NEXSTAR) — Inflation may remain top of mind for you, with the latest report showing rates holding steady through August. As pesky as it may be, it may also lead to yet another adjustment in our tax brackets, according to a new prediction.

The IRS typically announces changes that will impact how you file taxes each fall. Potentially the most impactful to most taxpayers is the adjustment to tax brackets.

That announcement came in early October last year, when the IRS released the federal brackets for 2026 , which apply to the returns we will file next year.

In a few weeks, the IRS is expected to share what the tax brackets will be for the 2027 filing season. These adjustments are meant to address “bracket creep,” which occurs when your income goes up faster than the tax thresholds built into the IRS code, potentially causing your tax bill to increase. Without a threshold adjustment, inflation could offset wage gain and taxpayers could find themselves paying higher taxes without real income growth.

A report from Bloomberg Tax suggests the IRS could enact a 3.2% increase for 2027 due to inflation, up from the 2.7% increase rolled out last year.

Bloomberg’s report estimates that all seven tiers of the IRS’s tax brackets will see a bump in 2027:

It’s worth noting, though, that these are only projections (Bloomberg Tax’s projections for 2026, however, were in line with the true brackets ). The actual updates to tax provisions aren’t expected from the IRS for at least a few more weeks.

If the tax brackets do change as expected, you’ll likely also see a larger paycheck in 2027.

The tax filing deadline in 2027 is April 15.