Figures last verified against primary sources on . See methodology and corrections.
2027 Deductions: $16,600 Standard, a $40,804 SALT Cap and a Senior Deduction That Stays at $6,000
Three deductions set how much income escapes federal tax before the brackets start, and for 2027 two of them rise. The standard deduction goes to $16,600 for a single filer and $33,200 on a joint return (Rev. Proc. 2026-35), and the cap on state and local taxes goes to $40,804 (26 U.S.C. §164(b)(7)). The $6,000 senior deduction stays at $6,000.
The 2027 amounts
| Deduction | 2026 | 2027 |
|---|---|---|
| Standard deduction, single | $16,100 | $16,600 |
| Standard deduction, married filing jointly | $32,200 | $33,200 |
| Standard deduction, head of household | $24,150 | $24,925 |
| Extra amount at 65 or blind, unmarried | $2,050 | $2,100 |
| Extra amount at 65 or blind, married, per spouse | $1,650 | $1,700 |
| Senior deduction, per person 65 or older | $6,000 | $6,000 |
| SALT cap, single or joint | $40,400 | $40,804 |
| MAGI where the SALT cap starts to shrink | $505,000 | $510,050 |
The 2026 figures are from Rev. Proc. 2025-32 and the 2027 standard deductions from Rev. Proc. 2026-35. The SALT figures come from the statute itself, which sets $40,400 for 2026 and then "101 percent of the dollar amount in effect" for the year before, for each year through 2029. From 2030 the cap returns to $10,000.
The senior deduction is not indexed. It is $6,000 for each person 65 or older from 2025 through 2028, and it shrinks by 6% of modified AGI above $75,000, or $150,000 on a joint return (IRS).
Four households, 2026 against 2027
Each household has the same pay in both years. The figures come from TaxMath's Form 1040 engine on the 2026 rules and on the 2027 rules built from Rev. Proc. 2026-35. Income tax is line 16, so the change also includes the wider 2027 brackets.
| Household | Deductions 2026 | Deductions 2027 | Income tax 2026 | Income tax 2027 |
|---|---|---|---|---|
| Single, 67, $60,000 of wages | $24,150 | $24,700 | $4,057 | $3,983 |
| Married, both 66, $120,000 of wages | $47,500 | $48,600 | $8,207 | $8,059 |
| Married, $300,000 of wages, $45,000 of state and local taxes | $40,400 | $40,804 | $47,500 | $46,925 |
| Married, $520,000 of wages, $50,000 of state and local taxes | $35,900 | $37,819 | $107,824 | $105,684 |
For the two older households, the deduction line combines three pieces. The 67-year-old single filer takes the standard deduction plus the $2,050 extra amount in 2026 ($18,150), then $16,600 plus $2,100 in 2027 ($18,700), and adds the same $6,000 senior deduction in both years. The couple adds $1,650 per spouse in 2026 and $1,700 in 2027, plus $12,000 of senior deductions.
The two itemizing couples deduct only state and local taxes here. At $300,000 the full cap applies, so the deduction rises by the $404 the cap rose. At $520,000 the couple is in the phase-down, where the cap shrinks by 30% of MAGI above the threshold. In 2026 that is $40,400 less 30% of $15,000, or $35,900. In 2027 the threshold also rose, to $510,050, so only $9,950 counts against a $40,804 cap, leaving $37,819. Moving the threshold up by $5,050 adds $1,515 to the deduction, nearly four times what the $404 cap increase adds.
What reaches a state return
The standard deduction can carry into state law directly. Missouri's statute says its standard deduction "shall be the allowable federal standard deduction" (RSMo §143.131), so a single Missourian's deduction rises with the federal one. At $65,000 of wages, the extra $500 is worth $24 at Missouri's 2026 rates.
The SALT cap is a federal limit on deducting state taxes, so it does not change what a state charges. The senior deduction is not part of AGI or the standard deduction, so states that start from federal AGI do not pick it up unless their legislatures add it. Which states follow the new federal deductions lists where each one stands.
Sources
Ordered by authority — the law and the agencies administering it first. Every link is checked for rot; see all sources.
- Primary lawRSMo §143.131 — Missouri standard deductionMissouri Revisor of Statutes · checked 2026-10-21"The Missouri standard deduction shall be the allowable federal standard deduction."Other articles citing this source
- Primary law26 U.S.C. §164 — TaxesOffice of the Law Revision Counsel · checked 2026-08-02The SALT deduction, its dollar limitation, and the limitation’s sunset.Other articles citing this source
- GovernmentRevenue Procedure 2025-32 — tax year 2026 inflation adjustmentsInternal Revenue Service · checked 2026-10-20The revenue procedure itself: the §1(j)(2) rate tables with their formula rows, the capital-gains thresholds, the child tax credit amount, the §4.14 standard-deduction rows and §63(f) aged/blind additional amounts, and the §2 background listing which OBBBA sections changed each figure.Other articles citing this source
- GovernmentRevenue Procedure 2026-35 — tax year 2027 inflation adjustmentsInternal Revenue Service · checked 2026-11-09For taxable years beginning in 2027: the §1(j)(2) rate tables (single 10% to $12,800, 12% to $52,025, 22% to $109,125, 24% to $208,325, 32% to $264,550, 35% to $661,375; joint 10% to $25,600, 12% to $104,050, 22% to $218,250, 24% to $416,650, 32% to $529,100, 35% to $793,650), the §1(h) zero-rate ceilings ($51,050 single, $102,100 joint), standard deductions of $16,600 single, $33,200 joint and $24,925 head of household, and the §63(f) additional amounts of $1,700, or $2,100 unmarried.Other articles citing this source
- GovernmentTax deductions for working Americans and seniorsInternal Revenue Service · checked 2026-08-02IRS summary of the tips, overtime, car loan interest, and senior deductions and their limits.Other articles citing this source