2027 Tax Brackets Just Leaked: What the Projected Numbers Mean for Your Year-End Planning

If you are a small-business owner looking ahead to 2027, the first numbers are here, but they are not official yet.

In September 2026, Thomson Reuters Checkpoint and Bloomberg Tax released inflation-adjusted projections for the 2027 federal tax brackets and standard deduction. The projections suggest an adjustment of approximately 3.2%, which would raise the income thresholds before taxpayers move into higher marginal tax brackets.

The IRS is expected to publish the official figures in a Revenue Procedure in late October or early November 2026. Until then, these numbers are planning estimates, not final IRS amounts.

That does not mean you should ignore them. Year-end planning is already underway, and these projections can help you make better decisions about income timing, retirement contributions, equipment purchases, and estimated tax payments.

The projected 2027 standard deduction

The standard deduction reduces taxable income before the tax brackets are applied. Based on the September projections, the 2027 amounts may be approximately:

Filing status	Projected 2027 standard deduction
Married filing jointly	$33,200
Single or married filing separately	$16,600
Head of household	About $24,900

For comparison, the official 2026 standard deduction is $32,200 for married couples filing jointly, $16,100 for single filers, and $24,150 for heads of household, according to the IRS 2026 inflation-adjustment guidance.

The projected increase is helpful, but it may not dramatically change your tax bill by itself. For many business owners, the more important question is where taxable income falls within the projected brackets.

Projected 2027 federal tax brackets

The tax rates are projected to remain at 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The rates do not apply to every dollar of income. Instead, each rate applies to a range of taxable income.

Here are the projected ordinary income brackets based on the September estimates from Thomson Reuters Checkpoint and Bloomberg Tax:

Tax rate	Single	Married filing jointly	Head of household
10%	$0–$12,800	$0–$25,600	$0–$18,250
12%	$12,801–$52,025	$25,601–$104,050	$18,251–$69,650
22%	$52,026–$109,125	$104,051–$218,250	$69,651–$109,125
24%	$109,126–$208,325	$218,251–$416,650	$109,126–$208,300
32%	$208,326–$264,550	$416,651–$529,100	$208,301–$264,500
35%	$264,551–$661,375	$529,101–$793,650	$264,501–$661,375
37%	Over $661,375	Over $793,650	Over $661,375

These are projected taxable-income thresholds for tax year 2027, not a tax table for your total business revenue. Taxable income comes after allowable business expenses, retirement contributions, deductions, and other adjustments.

The final numbers could shift slightly when the IRS publishes its official Revenue Procedure. The IRS’s 2026–2027 Priority Guidance Plan lists the 2027 inflation-adjustment guidance as an October 2026 project.

What does “defer income” or “accelerate income” actually mean?

For a small-business owner, income timing generally means deciding whether legitimate income or deductible expenses should fall in 2026 or 2027.

Deferring income into 2027

Deferring income could mean waiting to invoice for work that will genuinely be performed in 2027 or delaying collection of income when your accounting method and business arrangement allow it.

This may be worth considering if:

• Your 2026 taxable income is unusually high.

• You expect lower income in 2027.

• Deferring the income would keep you from moving into a higher marginal bracket.

• Your cash flow remains strong enough to postpone collection.

• You use the cash method and the timing follows applicable tax rules.

Deferral is not automatically better. Delaying customer payments can create cash-flow problems, and income-shifting rules do not allow you to manipulate dates simply to avoid tax. You should also consider whether postponing revenue will create a larger tax bill next year.

Accelerating income into 2026

Accelerating income could mean collecting available customer payments before December 31 or completing billable work before year-end.

This may make sense if:

• Your 2026 income is lower than usual.

• You expect 2027 income to be substantially higher.

• You have unused room in a lower tax bracket.

• You want to recognize income while your business has losses or other deductions available.

• You are preparing for a future sale, financing request, or change in business structure.

The right choice depends on your projected taxable income for both years, not just on the headline tax rate.

Year-end moves to review before December 31

1. Update your 2026 income projection

Start with your year-to-date bookkeeping. Review revenue, expenses, owner compensation, payroll, estimated payments, and any unusually large transactions.

A clean monthly bookkeeping process gives you a much better starting point than trying to reconstruct the year in December. Then estimate your full-year taxable income under several scenarios:

• Finish 2026 as expected

• Receive or defer selected income

• Make planned equipment purchases

• Increase retirement contributions

• Experience a stronger or weaker fourth quarter

The goal is not to predict the future perfectly. It is to identify decisions that could materially affect your tax bill.

2. Review retirement contribution options

Depending on your business structure and eligibility, you may have options such as a SEP IRA, SIMPLE IRA, or Solo 401(k). Contributions may reduce taxable income, build long-term savings, or both.

However, the rules vary by plan. Contribution limits, deadlines, employee requirements, and deduction treatment can differ. Do not wait until December to ask whether a plan must be established before year-end or whether a contribution can be made by the tax-return due date.

3. Evaluate equipment and other capital purchases

If you need a vehicle, computer system, machinery, furniture, or other business equipment, review the tax treatment before purchasing. Section 179, bonus depreciation, and regular depreciation can produce different results depending on the asset, business use, placed-in-service date, and current law.

A purchase should support your business, not happen solely because of a possible deduction. Spending $10,000 to save a portion of that amount in taxes is still spending $10,000.

4. Check estimated payments and withholding

A projected tax liability is useful only if you compare it with payments already made. Review federal estimated payments, state payments, payroll withholding, and any balance due from a prior year.

Making a payment before year-end may affect your cash flow and, in some cases, your deduction timing. Your tax professional can help determine whether an additional payment is appropriate and how it fits into your broader plan.

5. Make sure your books support your decisions

Before choosing to accelerate expenses or defer income, verify that your books are current and transactions are categorized correctly. Reconcile bank and credit card accounts, review accounts receivable, confirm major asset purchases, and investigate unusual income or expense balances.

If you use QuickBooks Online, one-on-one QuickBooks training can help you understand the reports behind your year-end decisions.

Use the projections now, then fine-tune later

The projected 2027 numbers are useful because tax planning is not a one-day event. They give you a reasonable framework for asking:

• Will my taxable income be close to a bracket threshold?

• Would income timing improve my overall tax position?

• Should I increase retirement contributions?

• Is a planned equipment purchase financially justified?

• Are my estimated payments on track?

But projections should not be treated as final instructions. Once the IRS releases the official 2027 amounts, review your plan again. A small change in a threshold may not alter your decision, but it could affect the final calculation.

The best approach is a two-step plan:

1. Use the current projections to begin your 2026 year-end planning.

2. Complete a final tune-up when the IRS publishes the official figures.

Year-end planning does not have to be complicated. It does require current books, realistic income estimates, and enough time to consider your options before December 31.

Ready to start your year-end tax plan?

The planning window is open now. At Your Business Accountant, we help small-business owners understand their numbers, evaluate tax-saving opportunities, and make informed decisions before year-end.

Whether you need bookkeeping cleanup, tax planning, QuickBooks support, or a second look at your business projections, contact Your Business Accountant to schedule your year-end planning conversation.