The IRS has announced its inflation adjustments for the 2027 tax year, including updates to standard deductions, tax credits, estate and gift tax exclusions, and business expensing limits. Here are some of the key changes:
Standard Deduction
- Married filing jointly: $33,200
- Single and married filing separately: $16,600
- Head of household: $24,925
Child Tax Credit
- Child tax credit: $2,300 (up from $2,200 in 2026)
- Refundable portion of child tax credit: $1,800 (up from $1,700 in 2026)
Estate & Gift Tax
- Unified exclusion: $15,480,000 (up from $15 million in 2026)
- Annual gift tax exclusion: $20,000 (up from $19,000 in 2026)
Alternative Minimum Tax (AMT)
AMT exemption:
- $93,000 for single and head of household (up from $90,100 in 2026)
- $144,700 for married filing jointly and surviving spouse (up from $140,200 in 2026)
AMT exemption phaseout threshold:
- $515,950 for single filers (up from $500,000 in 2026)
- $1,031,900 for married filing jointly (up from $1,000,000 in 2026)
Business Tax
- IRC §179 expense limit: $2,640,000 (up from $2,560,000 in 2026)
