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Posted on 11/05/2026 11:46:17 AM PST by Tell It Right
The IRS has announced higher federal tax brackets for 2027 to adjust for inflation.
The standard deduction will increase to $33,200 for married couples filing together and $16,600 for single taxpayers.
(Excerpt) Read more at cnbc.com ...
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37%: for incomes over $661,375 ($793,650 for married couples filing jointly)
35%: for incomes over $264,550 ($529,100 for married couples filing jointly)
32%: for incomes over $208,325 ($416,650 for married couples filing jointly)
24%: for incomes over $109,125 ($218,250 for married couples filing jointly)
22%: for incomes over $52,025 ($104,050 for married couples filing jointly)
12%: for incomes over $12,800 ($25,600 for married couples filing jointly)
10%: for incomes of $12,800 or less ($25,600 for married couples filing jointly)
For those who have options—take income this year because nothing good is going to be happening with a new Congress.
These are the Trump rates. I believe they are the new permanent rates so they dont expire. Congress wont be able to pass anything to raise them while Trump is in office and if they try they are now they (dems) will be labeled as tax hikers.
Trump’s tax cuts are not permanent.
One low tax rate in the hand is worth two in the bush.
Lol.
Way too many. Reagan had it right with 2 brackets.
It’s more complicated - you could start to lose SS deductions around 150K (married) or have Medicare premiums increase (somewhere north of 200K)
Flat tax is best. Imagine the tens of millions of phone calls into congress everytime they want to increase spending and need extra tax to cover it.
The reason they have gotten away with it being out of control is this laddered tax.
If you have upcoming Required Minimum Distributions on your 401Ks, take the hit now.
Democrats will have one bracket:
1. How much did you make in 2028: _________.
Send it in!
Where’s the postcard? Trump promised us to do our taxes on? I think truly he forgot about that. That’s not it in the same realm with promises kept but didn’t. I just think he forgot he said it.
GOP promised that all the way back to 1980s.
Temporary Provisions (Expiring After 2028): Certain newer deductions and campaign-related provisions—such as deductions for tips, overtime pay, car loan interest on American-made vehicles, an additional senior deduction, and government-seeded “Trump Accounts” for children born between 2025 and 2028—are scheduled to expire after 2028.
Some stuff and a big beautiful Bill has a sunset. This might be something Democrats want to extend though. They may make it permanent if the president increases the taxes for the top-tier group. I don’t know what the present would do in that case.
They’ll just force us to direct deposit paychecks straight to the Treasury.
The chances of me having a $104k taxable income is pretty slim in retirement even with a pension.
My neighbor has to start taking out 45,000 every year starting in 2027. I was like holy moly. They are dripping in money though I still have close to 20 years before I have to start taking out mandatory.
I disagree, at least as far as federal income taxes go. The OBB removed the sunset dates of the Trump tax cuts (TCJA). The only way income taxes change (aside from automatic inflation adjustments like in this article) is if Congress passes a law to increase tax rates -- but Trump will veto that.
However, it's a good time to revisit converting tax-deferred investments (traditional IRAs and traditional 401Ks/403Bs/457x) to Roth IRAs. We did that with my wife's 401K when she retired years ago, but after the TCJA lowered taxes. We did the same with my old traditional IRA. I'm quasi-retired with some tax-deferred 401K and Roth 401K still at my current employer. When I leave that job (probably next year) I'll convert however much I can to my Roth IRA without putting myself into a higher tax bracket. Then do the same the next year.
Other tricks to move money to your Roth IRA:
1) If you leave work on or after the year you turn 55 (Rule of 55 for 401Ks and 403Bs) you can withdraw from it penalty free but still have to pay taxes (if it's a traditional 401K.) When I leave my job next year (if it goes as planned) I won't be 59 yet, but can take advantage of the Rule of 55 to withdraw enough from my 401K to do contributions to mine and my wife's Roth IRAs. I will have worked part of the year, thus qualify to do Roth contributions (our income won't be too high for Roths). And the money I put into our Roths with that process will count as contributions, not conversions. Meaning, we won't have the 5-year wait rule for contributions.
2) If while working you've been contributing to you Roth 401K (or Roth 403B or Roth 457), when you leave that job you can transfer that money directly to your Roth IRA and the entirety of that counts as contributions to the Roth IRA. (Gotcha rule: the Roth 401K itself has to be at least 5 years old before you do that or you have a penalty.) There's not tax on Roth to Roth transfers like there is on tax-deferred to Roth conversions.
Combine steps 1 and 2 above with conversions from tax-deferred 401K to Roth IRA (some each year but not too much to put yourself into a higher tax bracket), and all of your tax-deferred money can wind up in your Roth IRA within X years with you paying the tax bracket you're in now. And you can time it out so that you can withdraw from the contributions portion of your Roth IRA while you wait for each conversion's 5-year rule to be satisfied before you withdraw from the amount that counts as conversion $.
Look up Roth IRA order of distribution rules to know the rules that are processed every time you make withdrawals from your Roth IRA to determine if you have to pay the 10% early withdrawal penalty. If you're crafty, you can map a strategy to avoid the penalty but retire earlier than 59.5 and live on Roth IRA investments that grew tax free.
If you can, put more into a Roth 401K, it’s better for your heirs than a regular 401K.
I don’t think they would make the individual mandatory send their paychecks to the treasury. I think they would make the company do it please don’t give them any ideas. I could see it now them taking the entire salary and giving everybody a monthly allowance that would definitely be something Democrats would love to do.
I moved all my money from traditional to Roth IRA a while back. However, I just wonder if someday Congress is gonna say oh my gosh, look at this money that’s flowing into the economy. We have to tax it. I know that is not the intent of the Roth, but we’re talking Congress here. I am seriously scared of it.
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