2027 Tax Numbers for Retirees: What Changes on January 1

Every January, most federal tax numbers move up with inflation. The IRS has now published the 2027 figures, and Social Security has set next year’s raise. For someone who is retired, or close to it, a handful of these numbers matter far more than the rest. This guide walks through those, and what each one changes.

What Changes on January 1, 2027

Here are the numbers a retiree is most likely to use, next to this year’s. Brackets and deductions apply to taxable income, which is income after deductions.

Number	2026	2027
Standard deduction, married filing jointly	$32,200	$33,200
Standard deduction, single	$16,100	$16,600
Extra deduction at 65+, per married person	$1,650	$1,700
Extra deduction at 65+, single	$2,050	$2,100
Top of the 12% bracket, married filing jointly	$100,800	$104,050
Top of the 12% bracket, single	$50,400	$52,025
Top of the 0% capital gains rate, married filing jointly	$98,900	$102,100
Top of the 0% capital gains rate, single	$49,450	$51,050
Qualified charitable distribution limit	$111,000	$114,000
Social Security cost-of-living raise	2.8%	3.6%

(IRS Rev. Proc. 2026-35, secs. 3.01, 3.03 and 3.15, released November 5, 2026; IRS Notice 2026-66, released November 12, 2026; SSA Latest Cost-of-Living Adjustment, accessed November 13, 2026.)

The Deduction Stack After 65

Turning 65 adds to your standard deduction. In 2027 a married couple gets $33,200, plus $1,700 for each spouse who is 65 or older. If both are 65 or older, that comes to $36,600. A single filer 65 or older gets $16,600 plus $2,100, or $18,700. (IRS Rev. Proc. 2026-35, sec. 3.15.)

The senior deduction sits on top of that. It is $6,000 for each person 65 or older, for tax years 2025 through 2028, and it does not change with inflation. It starts to shrink once modified adjusted gross income passes $75,000 for a single filer or $150,000 for a married couple. (26 U.S.C. §151(d)(5).)

Put together, a couple who are both 65 or older, with income under that $150,000 line, can deduct up to $48,600 in 2027 before federal income tax starts. That is the $36,600 standard deduction plus two senior deductions of $6,000.

Where the Low Brackets End

The 12% bracket for a married couple now runs to $104,050 of taxable income, up from $100,800. For a single filer it runs to $52,025. Many retirees try to fill this bracket on purpose, for example with a Roth conversion, because the next bracket is 22%. (IRS Rev. Proc. 2026-35, sec. 3.01.)

The 0% rate on long-term capital gains and qualified dividends also moves. For a married couple it covers taxable income up to $102,100. For a single filer it is $51,050. Gains that fall under that line are taxed at zero. Gains above it are taxed at 15% for most people. (IRS Rev. Proc. 2026-35, sec. 3.03.)

If You Are Still Working and Saving

• The 401(k), 403(b) and 457(b) limit rises to $25,500.
• The catch-up for people 50 and older rises to $8,500.
• The larger catch-up for people who turn 60, 61, 62 or 63 in 2027 rises to $11,750.
• The IRA limit stays at $7,500, and the IRA catch-up stays at $1,100.

One rule now depends on your pay. If your 2026 Social Security wages from the employer were above $155,000, your 2027 catch-up contributions to that plan must go in as Roth. (IRS Notice 2026-66.)

If You Give to Charity From an IRA

A qualified charitable distribution lets someone 70½ or older send money from an IRA straight to a charity. It is left out of taxable income, and it can count toward a required minimum distribution. In 2027 the limit rises to $114,000 per IRA owner. The one-time gift to a charitable remainder trust or charitable gift annuity rises to $57,000. (IRS Notice 2026-66; 26 U.S.C. §408(d)(8).)

Gifts to family get a little more room too. The annual gift tax exclusion rises to $20,000 per recipient. (IRS Rev. Proc. 2026-35, sec. 3.46.)

Social Security in 2027

Benefits rise 3.6% with the January payment. On a $2,000 monthly check, that is about $72 more a month, before any change in the Medicare premium. (SSA, Latest Cost-of-Living Adjustment.)

If you claim before full retirement age and keep working, the earnings test limit rises to $25,560. In the year you reach full retirement age, it rises to $67,920. (SSA, Retirement Earnings Test Exempt Amounts.)

What Is Not Out Yet

Two numbers retirees watch closely have not been published. Medicare has not yet announced the 2027 Part B premium or the 2027 income brackets for the IRMAA surcharge. Those come from the Centers for Medicare & Medicaid Services, usually in the fall. Until then, the 2026 Part B premium of $202.90 a month is the latest official figure. (CMS, 2026 Medicare Parts A & B Premiums and Deductibles.)

The Bottom Line

For most retirees, 2027 brings slightly more room in every low-tax layer. The standard deduction, the 12% bracket and the 0% capital gains rate all rise by about 3%. The QCD limit rises, and Social Security rises 3.6%. None of these changes is large on its own. But if you plan a Roth conversion, a capital gain or a charitable gift, the new lines are the ones to plan around. This is an educational summary of the published figures, not tax advice for your situation.

Frequently Asked Questions

Q: What is the 2027 standard deduction for a married couple over 65?

$36,600 if both spouses are 65 or older: the $33,200 standard deduction plus $1,700 for each spouse. The separate $6,000 senior deduction per person can add up to $12,000 more for couples with modified adjusted gross income under $150,000.

Q: Where does the 12% tax bracket end in 2027?

At $104,050 of taxable income for a married couple filing jointly and $52,025 for a single filer, up from $100,800 and $50,400 in 2026.

Q: What is the QCD limit for 2027?

$114,000 per IRA owner, up from $111,000. The one-time distribution to a charitable remainder trust or charitable gift annuity rises to $57,000.

Q: Has the 2027 Medicare Part B premium been announced?

Not yet. The Centers for Medicare & Medicaid Services publishes the Part B premium and IRMAA brackets each fall. Until then, the 2026 premium of $202.90 a month is the latest official figure.

General educational information, current as of 2026. Not personalized investment, tax, or legal advice — figures and rules change. For guidance specific to your situation, talk to a qualified professional. See our disclosures.