2027 IRS Limits: Brackets, 401(k), IRA and HSA: How It Works

By Tom, CPA · Updated October 25, 2026

TL;DR: As of Oct 25, 2026, the IRS has published 2027 HSA limits ($4,500 self-only, $9,000 family) and the 2027 ACA applicable percentage table, and SSA has announced a 3.6% COLA and a $192,300 wage base. The 2027 tax brackets, standard deduction, capital gains thresholds and 401(k) and IRA limits have not been released yet.

Educational only, not tax, legal, or investment advice. Examples are illustrations, not predictions. Rules and limits change; verify current figures and talk to a qualified professional about your situation.

Updated as the IRS publishes. Until then we leave the blanks blank, like grown-ups. Each fall, the IRS releases inflation adjustments for the following year, and SSA announces the cost-of-living adjustment. The releases trickle out over several weeks, so for a while next year's numbers are a half-finished crossword.

This page lists what has been officially announced for 2027 as of October 25, 2026, what is still pending, and how to plan in the meantime. For the full 2026 reference, see 2026 brackets and limits.

CPA Warning Label: Blank cells on this page are blank on purpose. Any website showing exact 2027 brackets before the IRS publishes them is showing a projection, not a law.

What's announced so far

The HSA catch-up contribution for people 55 and older is set by statute at $1,000 and is not indexed.

ACA applicable percentage table for 2027

Rev. Proc. 2026-26 sets the share of household income a family is expected to pay for the benchmark marketplace plan in 2027:

The table stops at 400% because, as of Oct 2026, households above 400% of the poverty level are not eligible for a premium tax credit. For early retirees managing MAGI, the 400% line is the cliff to watch in 2027, unless Congress changes the law.

Contribution limits

The 2027 limits for 401(k) deferrals, catch-up contributions and IRA contributions are pending as of October 25, 2026. For reference, the 2026 figures are $24,500 for 401(k) deferrals, an $8,000 catch-up at 50 or older, $11,250 at ages 60 to 63, and $7,500 for IRAs with a $1,100 catch-up (IRS IR-2025-111). Contribution limits are indexed in fixed increments, so they rise in steps, and some years they do not change at all.

Plan with the 2026 numbers until the IRS announces 2027. If you max out a 401(k) through payroll, update your deferral percentage in January once the new limit is known.

Brackets and deduction

The 2027 income tax brackets, standard deduction, capital gains thresholds, AMT exemption, gift exclusion and kiddie tax amounts are pending. They will be published in an IRS revenue procedure, typically in October or November. Under the 2025 tax law, the bracket structure and larger standard deduction are permanent and continue to be indexed for inflation, so the 2027 numbers should be modestly higher than 2026.

Items that will not change because they are fixed by statute:

• NIIT thresholds: $250,000 joint, $200,000 single and head of household, $125,000 married filing separately (IRS Topic 559).
• Social Security benefit taxation thresholds: $25,000/$32,000 and $34,000/$44,000 (IRS Topic 423).
• Capital loss deduction: $3,000 ($1,500 MFS) (IRS Topic 409).
• Senior deduction: $6,000 per eligible person, through 2028 (IRS FS-2025-03), as of Oct 2026.
• Non-itemizer charitable deduction: $1,000 / $2,000 (IRS Publication 6196).

What's still pending

• 2027 tax brackets, standard deduction and capital gains thresholds.
• 2027 401(k), 403(b), 457 and IRA limits and phase-out ranges.
• 2027 Medicare Part B and Part D premiums, deductible and IRMAA thresholds (CMS usually announces these in the fall).
• 2027 qualified charitable distribution limit.
• 2027 federal poverty guidelines used for 2028 marketplace coverage.
• 2027 SALT limit details.

How inflation indexing works

Most tax amounts are adjusted using the chained consumer price index for a 12-month period ending in August of the prior year. The IRS then rounds each amount down to a specified multiple, often $50 for brackets and deductions and $500 for retirement plan limits. That is why some limits stay flat for a year and then jump: the indexed amount must cross the next rounding step before the published number changes.

This matters for planning because 2027 figures can be roughly estimated, but not exactly. A conversion plan that depends on the last $100 of the 12% bracket should use the official number, not an estimate.

HSA planning with the 2027 limits

For early retirees, the HSA is often the most valuable account they can still fund, because contributions do not require earned income, only HDHP coverage. A couple with a family HDHP through the marketplace can contribute $9,000 in 2027, plus $1,000 for each spouse 55 or older in a separate HSA. The deduction lowers AGI, which helps with ACA premium tax credits, and qualified medical withdrawals are tax-free.

Illustration. Assumptions: married couple, both 57, on a family HDHP all of 2027, with MAGI otherwise at $90,000. Contributing $9,000 plus $1,000 catch-up each ($11,000 total) lowers MAGI to $79,000, which is below 400% of the poverty level for a two-person household under 2026 coverage figures ($84,600, per CMS). That could restore eligibility for a premium tax credit worth far more than the tax deduction itself. Check the poverty-line figures published for 2027 coverage before relying on this.

Illustration: planning a 2027 conversion before the numbers arrive

Illustration. Assumptions: married couple planning to fill the 12% bracket with a Roth conversion in 2027. Under 2026 numbers, that means $133,000 of ordinary income ($100,800 top of 12% plus the $32,200 standard deduction).

• If they plan to convert in December 2027, they can simply wait for the official figures, which will be out long before.
• If they want to convert in January 2027 for market-timing reasons, they can convert up to the 2026 limit of $133,000 of total ordinary income, knowing that indexing is very likely to raise the 2027 threshold, leaving a small cushion. A top-up conversion later in the year can use any extra room.

Either way, there is no need to guess at the new numbers. Using the old ones is conservative.

Expected release timing

• IRS general inflation adjustments (brackets, standard deduction, capital gains thresholds): usually October or November.
• IRS retirement plan limits (401(k), IRA): usually October or November, after the relevant inflation data.
• CMS Medicare premiums and IRMAA tiers: usually in the fall.
• HHS poverty guidelines: usually in January.
• IRS QCD limit: included in later guidance or publications.

These are patterns, not promises; the IRS has published later in some years.

What the 3.6% COLA means for retirees

A 3.6% increase in Social Security benefits raises provisional income, which can make more of your benefits taxable because the $25,000/$32,000 and $34,000/$44,000 thresholds are not indexed. A retiree near those thresholds may see a small rise in taxable benefits in 2027 even with no other change. See the tax torpedo. The COLA also affects Medicare premium deductions from benefit payments once CMS announces 2027 premiums.

A 2027 planning checklist

1. Update HSA contributions for 2027 using the new $4,500 or $9,000 limit.
2. Adjust estimated tax for a 3.6% higher Social Security benefit.
3. Pencil in 2027 conversions using 2026 brackets, then top up when 2027 brackets are published.
4. For marketplace coverage, check 2027 income against 400% of the poverty level using the figures published for 2027 coverage.
5. Revisit 401(k) deferral percentages when 2027 limits arrive.

How we update this page

We check IRS, SSA and CMS releases as they come out and add each number with its source and date. Projections from third parties are not included. If a figure is listed as pending, it is because no official source has published it yet as of the page date. Frugal Fran refreshes the IRS newsroom every morning in October. Lavish Larry waits for his software to update in February. Both get the same numbers eventually.