2027 IRS Contribution Limits, Tax Brackets and Key Thresholds
Key changes for 2027
- The 401(k), 403(b), 457 and TSP employee contribution limit rises to $25,500 (up $1,000 from $24,500).
- The age 50+ catch-up rises to $8,500. The special catch-up for ages 60 to 63 rises to $11,750.
- The IRA contribution limit stays at $7,500, with a $1,100 catch-up for age 50+.
- HSA limits rise to $4,500 (self-only) and $9,000 (family), up from $4,400 and $8,750.
- The federal estate and gift tax exemption rises to $15,480,000 per person, and the annual gift exclusion rises to $20,000.
- The standard deduction rises to $16,600 for single filers and $33,200 for married couples filing jointly.
2027 retirement, estate and Social Security limits
| Limit | 2027 | 2026 | Change |
|---|---|---|---|
| 401(k), 403(b), 457 and TSP plans | |||
| Employee contribution limit | $25,500 | $24,500 | +$1,000 |
| Catch-up contribution (age 50 to 59 and 64+) | $8,500 | $8,000 | +$500 |
| Special catch-up contribution (age 60 to 63) | $11,750 | $11,250 | +$500 |
| Catch-ups must be Roth if prior-year FICA wages from the same employer exceed | $155,000 | $150,000 | +$5,000 |
| Total contribution limit (employer + employee, excluding catch-up) | $75,000 | $72,000 | +$3,000 |
| Annual compensation limit | $375,000 | $360,000 | +$15,000 |
| Self-employed and small business plans | |||
| SEP IRA and Solo 401(k) limit | $75,000 | $72,000 | +$3,000 |
| SIMPLE IRA and SIMPLE 401(k) contribution | $17,500 | $17,000 | +$500 |
| Defined benefit plan annual benefit limit | $300,000 | $290,000 | +$10,000 |
| IRAs | |||
| Traditional and Roth IRA contribution limit | $7,500 | $7,500 | No change |
| IRA catch-up contribution (age 50+) | $1,100 | $1,100 | No change |
| Qualified charitable distribution (QCD) limit | $114,000 | $111,000 | +$3,000 |
| Estate and gift | |||
| Federal estate and gift tax exemption (per person) | $15,480,000 | $15,000,000 | +$480,000 |
| Annual gift exclusion (per person, per recipient) | $20,000 | $19,000 | +$1,000 |
| Other limits | |||
| Health FSA contribution limit | $3,500 | $3,400 | +$100 |
| Social Security taxable wage base | $192,300 | $184,500 | +$7,800 |
| Social Security cost-of-living adjustment (COLA) | 3.6% | 2.8% | +0.8 pts |
HSA limits are in the HSA table below.
2027 traditional IRA deduction income limits
| Workplace retirement plan coverage | Single or head of household | Married filing jointly | Married filing separately |
|---|---|---|---|
| You are covered | $83,000 to $93,000 | $133,000 to $153,000 | $0 to $10,000 |
| You are not covered, but your spouse is | Not applicable | $250,000 to $260,000 | $0 to $10,000 |
| Neither you nor your spouse is covered | Full deduction at any income | Full deduction at any income | Full deduction at any income |
Below the range you can deduct the full contribution. Within the range the deduction is reduced. Above the range there is no deduction, but you can still make a nondeductible contribution. Married filing separately ranges assume you lived with your spouse during the year.
2027 Roth IRA income limits
| Contribution allowed | Single or head of household | Married filing jointly | Married filing separately |
|---|---|---|---|
| Full contribution | Under $158,000 | Under $250,000 | Not available |
| Partial contribution | $158,000 to $173,000 | $250,000 to $260,000 | $0 to $10,000 |
| No contribution | $173,000 or more | $260,000 or more | $10,000 or more |
2027 federal income tax brackets
| Tax rate | Single | Married filing jointly |
|---|---|---|
| 10% | $0 to $12,800 | $0 to $25,600 |
| 12% | $12,800 to $52,025 | $25,600 to $104,050 |
| 22% | $52,025 to $109,125 | $104,050 to $218,250 |
| 24% | $109,125 to $208,325 | $218,250 to $416,650 |
| 32% | $208,325 to $264,550 | $416,650 to $529,100 |
| 35% | $264,550 to $661,375 | $529,100 to $793,650 |
| 37% | Over $661,375 | Over $793,650 |
2027 standard deduction
| Deduction | Single | Married filing jointly |
|---|---|---|
| Standard deduction | $16,600 | $33,200 |
| Additional deduction, age 65+ | $2,100 | $1,700 per person |
| Senior deduction, age 65+ (2025 to 2028) | $6,000 (phases out at MAGI of $75,000 to $175,000) | $6,000 per person (phases out at MAGI of $150,000 to $250,000) |
The 2027 standard deduction for heads of household is $24,925.
2027 long-term capital gains tax rates
| Tax rate | Single | Married filing jointly |
|---|---|---|
| 0% | $0 to $51,050 | $0 to $102,100 |
| 15% | $51,050 to $563,200 | $102,100 to $633,600 |
| 20% | Over $563,200 | Over $633,600 |
2027 alternative minimum tax (AMT)
| AMT item | Single | Married filing jointly |
|---|---|---|
| Exemption amount | $93,000 | $144,700 |
| Exemption starts phasing out at AMT income of | $515,950 | $1,031,900 |
| Exemption fully phased out at AMT income of | $701,950 | $1,321,300 |
| AMT tax rates (after the exemption) | 26% on the first $252,500, 28% above $252,500 | |
The exemption shrinks by 50 cents for every dollar of AMT income above the phase-out start.
2027 HSA and high-deductible health plan limits
| Item | Self-only coverage | Family coverage |
|---|---|---|
| HSA contribution limit | $4,500 (2026: $4,400) | $9,000 (2026: $8,750) |
| HSA catch-up contribution (age 55+) | $1,000 | $1,000 |
| HDHP minimum annual deductible | $1,750 | $3,500 |
| HDHP out-of-pocket maximum | $8,700 | $17,400 |
Prior-year HSA contributions can be made up to the tax filing deadline.
Frequently asked questions
- What is the 401(k) contribution limit for 2027?
- The 2027 employee contribution limit for 401(k), 403(b), 457 and TSP plans is $25,500. Savers age 50 or older can add an $8,500 catch-up, and savers age 60 to 63 can add $11,750 instead.
- What is the IRA contribution limit for 2027?
- The 2027 traditional and Roth IRA contribution limit is $7,500, unchanged from 2026. Savers age 50 or older can contribute an extra $1,100.
- What are the Roth IRA income limits for 2027?
- Single filers can make a full Roth IRA contribution with MAGI under $158,000, phasing out completely at $173,000. Married couples filing jointly can make a full contribution under $250,000, phasing out completely at $260,000.
- What is the HSA contribution limit for 2027?
- The 2027 HSA limit is $4,500 for self-only coverage and $9,000 for family coverage, plus a $1,000 catch-up for those 55 or older.
- What is the estate tax exemption for 2027?
- The 2027 federal estate and gift tax exemption is $15,480,000 per person. The annual gift exclusion is $20,000 per recipient.
- What is the standard deduction for 2027?
- The 2027 standard deduction is $16,600 for single filers, $33,200 for married couples filing jointly and $24,925 for heads of household.
Sources: IRS: 401(k) limit increases to $25,500 for 2027; IRS Notice 2026-66; IRS: 2027 tax inflation adjustments; Rev. Proc. 2026-35; Rev. Proc. 2026-24; SSA 2027 COLA fact sheet. This information is educational and is not tax or legal advice.
