Bloomberg Projects IRS Raises 2027 Tax Brackets By 3.2%

Federal income tax brackets for 2027 are projected to increase by 3.2%, allowing taxpayers to earn more before hitting higher rates, according to new estimates from Bloomberg Tax & Accounting released on September 11, 2026. The IRS typically announces inflation-adjusted brackets in October or November but has not yet issued its official figures for the upcoming tax season. Because the Bureau of Labor Statistics did not report October 2025 data due to a government shutdown, Bloomberg calculated the index using an 11-month average based on the chained Consumer Price Index used by the IRS. This inflation adjustment is crucial as it helps prevent bracket creep, where income bands fail to keep pace with rising prices driven largely by high fuel costs from recent conflicts. The report also accounts for new adjustments under the One Big Beautiful Bill Act affecting thresholds and credits for both corporate and individual taxpayers.