Each fall, the IRS adjusts dozens of tax figures for inflation. Last week it released the numbers for tax year 2027 (the returns you’ll file in 2028). The changes are modest, but some of them create planning opportunities, and a few are worth acting on before the end of this year.
Standard Deduction
- Married filing jointly: $33,200 (up $1,000)
- Single or married filing separately: $16,600 (up $500)
- Head of household: $24,925 (up $775)
Because the standard deduction keeps rising, fewer households will benefit from itemizing in a given year. If you give to
charity regularly, “bunching” several years of gifts into one year, often through a donor-advised fund, can help you clear that threshold and get more value from your generosity.
Tax Brackets
The rates themselves stay the same. The income ranges for each bracket move up:
| Rate |
Single |
Married Filing Jointly |
| 10% |
Up to $12,800 |
Up to $25,600 |
| 12% |
Over $12,800 |
Over $25,600 |
| 22% |
Over $52,025 |
Over $104,050 |
| 24% |
Over $109,125 |
Over $218,250 |
| 32% |
Over $208,325 |
Over $416,650 |
| 35% |
Over $264,550 |
Over $529,100 |
| 37% |
Over $661,375 |
Over $793,650 |
Knowing where your income falls within these brackets is one of the most useful planning tools available. It helps answer questions like whether this is the right year for a Roth conversion, when to recognize capital gains, or how to time a bonus or business income.
Estate and Gift Tax
- The lifetime estate and gift tax exemption increases to $15.48 million per person, or $30.96 million for a married couple.
- The annual gift exclusion increases to $20,000 per recipient, the first increase since 2025. A married couple can give $40,000 per recipient without using any of their lifetime exemption.
The new $20,000 limit doesn’t take effect until January 1, 2027. If you’re planning annual gifts, the $19,000 limit still applies to gifts made through December 31, 2026.
Other Changes Worth Knowing
- The maximum child tax credit rises to $2,300 per child, with up to $1,800 refundable.
- The alternative minimum tax exemption increases to $93,000 for single filers and $144,700 for married couples filing jointly, and starts phasing out at $515,950 and $1,031,900.
- Taxpayers in the top bracket still face a separate limit on how much benefit they get from itemized deductions.
What to Decide Before December 31
Most of these changes take effect next year, but several of the decisions they affect have a year-end deadline:
- Annual gifts. Gifts of up to $19,000 per recipient need to be completed by December 31 to count for 2026.
- Roth conversions. A conversion has to be completed by December 31 to count as 2026 income.
- Charitable giving. Decide whether to bunch gifts into 2026 or 2027 based on which year gives you more benefit from itemizing.
- Gains and losses. Review what you’ve realized this year while there’s still time to adjust.
Planning Ahead Beats Looking Back
On their own, these numbers are just data. What matters is how they apply to your income, your goals, and the decisions in front of you. A tax return tells you what already happened. Planning before year-end gives you a chance to change the outcome.
For clients who also work with Beaird Harris Wealth Management, our tax and wealth teams coordinate so that decisions about investments, retirement income, and giving are made with the full tax picture in view.
Schedule Your Year-End Planning Conversation
Contact your Beaird Harris team to set up a year-end planning conversation. Together we’ll estimate where your 2026 income is likely to land, identify any decisions that need to be made before December 31, and look at how the 2027 changes affect your plan. December calendars fill quickly, so the sooner we connect, the more options you’ll have.