Pevita Pearce
Bloomberg Tax & Accounting has unveiled its highly anticipated projections for U.S. tax rates in 2027, offering tax professionals and taxpayers a crucial head start in financial planning. This annual release, detailed in the "Projected U.S. Tax Rates Report," provides early insights into potential tax adjustments, enabling strategic decision-making well before the Internal Revenue Service (IRS) officially publishes its figures later this fall. The projections anticipate a 3.2% increase in inflation from 2026 to 2027, a slight acceleration from the 2.7% inflation observed between 2025 and 2026.
The report serves as a vital tool, offering "early, accurate notice of the potential tax savings that could be realized due to increases in deduction limitations, upward adjustments to tax brackets, and increases to numerous other key thresholds," according to a statement released by Bloomberg Tax & Accounting on Friday. This proactive approach is particularly significant given the complexities of the current tax landscape and the ongoing need for financial agility.
A notable factor influencing the 2027 projections is the methodology employed due to an unforeseen circumstance in the federal appropriations process. The U.S. Bureau of Labor Statistics did not release its Consumer Price Index (CPI) report for October 2025, a consequence of a federal government shutdown. Consequently, the chained consumer price index (C-CPI-U), a key inflation measure, was computed based on an 11-month average. This deviation underscores the dynamic nature of economic data and the importance of adaptable reporting tools.
Impact of Legislative Adjustments on 2027 Tax Planning
The Bloomberg Tax & Accounting report also incorporates several significant adjustments stemming from the "One Big Beautiful Bill Act" (OBBBA). These legislative changes are poised to influence tax planning for individuals and businesses alike in 2027 and beyond. For corporate taxpayers and pass-through entities, the report highlights adjustments to the employer-provided child care credit, which was initially enhanced by the OBBBA. Furthermore, the OBBBA’s impact on the threshold for information-at-source reporting requirements has been factored into the projections. For individual taxpayers, the report details varied income tax rates, with particular attention paid to steeper adjustments in the lower tax brackets, aiming to provide greater relief to those with less income.
Evan Croen, head of Bloomberg Tax & Accounting, emphasized the critical role of these projections in the current financial climate. "Tax professionals are being asked to make consequential planning decisions amid constant policy change and growing complexity," Croen stated. "By providing trusted projections before official figures are released and carrying those updates directly into the tools where professionals work, we can help them move from information to action sooner and spend more time applying their expertise to the decisions that matter most." This sentiment underscores the value of timely and integrated financial intelligence for navigating an increasingly intricate tax environment.
Seamless Integration into Professional Workflow
A key feature of Bloomberg Tax & Accounting’s offering is the direct integration of these updated tax rates into their suite of software solutions. This seamless flow of information into platforms such as Bloomberg Tax Provision, Bloomberg Tax Fixed Assets, and Bloomberg Tax Workpapers ensures that tax professionals can immediately leverage the projected data without the need for manual input or data reconciliation. This integration streamlines the planning process, allowing for more efficient and accurate financial forecasting.
Key Projected Adjustments for 2027
The report provides detailed breakdowns of several critical tax components, comparing 2026 figures with the projected 2027 figures. These adjustments are crucial for understanding the evolving tax landscape.
Individual Income Tax Rate Brackets: A Closer Look
The projections reveal adjustments to the income ranges for each tax bracket for both married couples filing jointly and single individuals. These adjustments are designed to account for inflation and legislative changes, ensuring that taxpayers are not pushed into higher tax brackets solely due to rising costs of living.
Married Filing Jointly and Surviving Spouses:
| 2026 Tax Rate Bracket Income Ranges | Projected 2027 Tax Rate Bracket Income Ranges |
|---|---|
| 10% – $0 to $24,800 | 10% – $0 to $25,600 |
| 12% – Over $24,800 to $100,800 | 12% – Over $25,600 to $104,050 |
| 22% – Over $100,800 to $211,400 | 22% – Over $104,050 to $218,250 |
| 24% – Over $211,400 to $403,550 | 24% – Over $218,250 to $416,650 |
| 32% – Over $403,550 to $512,450 | 32% – Over $416,650 to $529,100 |
| 35% – Over $512,450 to $768,700 | 35% – Over $529,100 to $793,650 |
| 37% – Over $768,700 | 37% – Over $793,650 |
Unmarried Individuals (other than Surviving Spouses and Heads of Households):
| 2026 Tax Rate Bracket Income Ranges | Projected 2027 Tax Rate Bracket Income Ranges |
|---|---|
| 10% – $0 to $12,400 | 10% – $0 to $12,800 |
| 12% – Over $12,400 to $50,400 | 12% – Over $12,800 to $52,025 |
| 22% – Over $50,400 to $105,700 | 22% – Over $52,025 to $109,125 |
| 24% – Over $105,700 to $201,775 | 24% – Over $109,125 to $208,325 |
| 32% – Over $201,775 to $256,225 | 32% – Over $208,325 to $264,550 |
| 35% – Over $256,225 to $640,600 | 35% – Over $264,550 to $661,375 |
| 37% – Over $640,600 | 37% – Over $661,375 |
The widening of these brackets signifies an attempt to maintain tax burdens at a similar real income level year-over-year, a common adjustment mechanism to combat bracket creep caused by inflation.
Standard Deduction Adjustments
The standard deduction, a fixed amount that reduces taxable income, also sees an increase, providing additional relief to taxpayers who do not itemize deductions.
| Filing Status | 2026 Standard Deduction | Projected 2027 Standard Deduction |
|---|---|---|
| Married Filing Jointly/Surviving Spouses | $31,500 | $33,200 |
| Heads of Household | $23,625 | $24,925 ($24,950) |
| All Other Taxpayers | $15,750 | $16,600 |
The increase in the standard deduction further enhances the potential for tax savings, especially for individuals and families who rely on this simplified deduction method.
Alternative Minimum Tax (AMT) Exemption Amounts
The projections also include adjustments to the Alternative Minimum Tax (AMT) exemption amounts. The AMT is a parallel tax system designed to ensure that higher-income taxpayers pay at least a minimum amount of tax. Increases in the exemption amount can shield more taxpayers from this parallel system, particularly those with significant deductions or credits.
| Filing Status | 2026 AMT Exemption Amount | Projected 2027 AMT Exemption Amount |
|---|---|---|
| Married Filing Jointly/Surviving Spouses | $140,200 | $144,700 |
| Unmarried Individuals (other than Surviving Spouses) | $90,100 | $93,000 |
| Married Filing Separately | $70,100 | $72,350 |
| Estates and Trusts | $31,400 | $32,500 |
These adjustments to the AMT exemption amounts are critical for tax planning, as they directly impact the calculation of AMT liability for affected taxpayers.
Broader Implications and the Importance of Proactive Planning
The release of these projected tax rates by Bloomberg Tax & Accounting comes at a time of increased economic uncertainty and evolving legislative landscapes. The "One Big Beautiful Bill Act" (OBBBA), while aimed at simplifying and reforming aspects of the tax code, introduces complexities that necessitate careful analysis and planning. The adjustments to credits, reporting thresholds, and tax brackets underscore the dynamic nature of tax policy.
The proactive release of these projections allows tax professionals to move beyond reactive compliance and engage in more strategic tax advisory services. By understanding potential changes well in advance, firms can better advise their clients on optimizing their tax positions, identifying potential savings, and mitigating risks. This includes advising on the timing of income and deductions, evaluating the impact of legislative changes on business operations, and ensuring compliance with updated reporting requirements.
The unusual circumstance of the CPI report delay highlights the dependency of tax calculations on timely economic data and the potential for disruptions. Bloomberg Tax & Accounting’s ability to compute and disseminate these projections despite such an anomaly demonstrates the resilience and critical function of independent analytical services in the financial ecosystem.
For taxpayers, this early insight offers an opportunity to engage in informed discussions with their tax advisors, make necessary adjustments to their financial strategies, and prepare for the upcoming tax year with greater confidence. The increased inflation rate projected for 2027, while a concern for the broader economy, directly influences the adjustments to tax brackets and deductions, potentially offsetting some of the tax burden for many individuals and businesses.
Ultimately, the "Projected U.S. Tax Rates Report" from Bloomberg Tax & Accounting serves as a vital resource, enabling a more informed and strategic approach to tax planning in an ever-changing financial and regulatory environment. The integration of these projections into professional software further empowers tax professionals to deliver timely and accurate advice, solidifying the importance of data-driven decision-making in the field of taxation.
Photo credit: Nataliya Vaitkevich/Pexels
