At a glance
- As Private Wealth Daily previously reported, the revenue procedure covers almost 70 provisions.
- A year-end bonus, a large Roth conversion or a partial business sale can push a single filer through two brackets in one year: the 32% band above $208,325 spans only about $56,000.
- A non-grantor trust reaches the 37% ordinary rate above $16,500 of taxable income.
The IRS raised the 2027 threshold for the 37% bracket to $793,650 for married couples filing jointly and $661,375 for single filers, InvestmentNews reported. The figures are in Revenue Procedure 2026-35, released Nov. 5, which also lifts the estate tax exclusion to $15.48 million. As Private Wealth Daily previously reported, the revenue procedure covers almost 70 provisions.
A year-end bonus, a large Roth conversion or a partial business sale can push a single filer through two brackets in one year: the 32% band above $208,325 spans only about $56,000. Joint filers have roughly twice that room, with 32% starting above $416,650 and 35% above $529,100.
A non-grantor trust reaches the 37% ordinary rate above $16,500 of taxable income. The AMT exemption for joint filers rises to $144,700, phasing out at $1,031,900, a change that affects clients holding incentive stock options.
Joint filers reach each top rate at higher income
Taxable income at which each rate begins, 2027 ($)
- Single
- Joint
Select a row for its counts and shares.
32% rate starts
- Single$208.3K18.4% of all single
- Joint$416.6K24% of all joint
35% rate starts
- Single$264.6K23.3% of all single
- Joint$529.1K30.4% of all joint
37% rate starts
- Single$661.4K58.3% of all single
- Joint$793.6K45.6% of all joint
Show as table
| Group | Single | Single share | Joint | Joint share |
|---|---|---|---|---|
| 32% rate starts | $208.3K | 18.4% | $416.6K | 24% |
| 35% rate starts | $264.6K | 23.3% | $529.1K | 30.4% |
| 37% rate starts | $661.4K | 58.3% | $793.6K | 45.6% |
Reported by the RIA desk from InvestmentNews. Published . Corrections