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IRS lifts 2027 top bracket to $793,650 for joint filers

The estate tax exclusion rises to $15.48 million under Revenue Procedure 2026-35.

$793,650for joint filers

At a glance

  1. As Private Wealth Daily previously reported, the revenue procedure covers almost 70 provisions.
  2. 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.
  3. 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
Source: IRS Revenue Procedure 2026-35 via InvestmentNews
Show as table
GroupSingleSingle shareJointJoint share
32% rate starts$208.3K18.4%$416.6K24%
35% rate starts$264.6K23.3%$529.1K30.4%
37% rate starts$661.4K58.3%$793.6K45.6%

Reported by the RIA desk from InvestmentNews. Published . Updated Nov 6, 2026 · 12:20 p.m. ET. Corrections

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