Bloomberg Tax projects a 3.2% inflation adjustment for IRS 2027 tax bracket projections, meaning many federal income-tax thresholds would rise compared with 2026, the firm’s 2027 Projected U.S. Tax Rates report shows.
Bloomberg Tax & Accounting released its 2027 Projected U.S. Tax Rates report on Sept. 11, 2026, and the firm says the planned inflation adjustment is 3.2% from 2026 levels, covering bracket thresholds, the standard deduction and other indexed amounts.
Major outlets relaying the Bloomberg Tax projection noted the same 3.2% figure for inflation adjustments to 2027 tax brackets. CBS News summarized that “each bracket’s income limits are projected to rise about 3.2% for inflation, meaning couples can earn more before moving into a higher tax rate,” citing the Bloomberg Tax projection.
The Bloomberg Tax report provides projected inflation-adjusted amounts across the Internal Revenue Code to give tax professionals an early planning tool ahead of the IRS’s official inflation adjustments. Bloomberg’s materials say the projection covers hundreds of line items, including bracket thresholds and the standard deduction.
For taxpayers, a 3.2% adjustment in the IRS 2027 tax bracket projections would reduce “bracket creep” by moving income thresholds upward, the coverage says. Industry reporting and tax-advisor outlets used Bloomberg’s numbers to estimate where key thresholds might land and to advise planning for 2027.
Background: the IRS annually indexes many tax amounts to inflation so thresholds do not erode over time. Bloomberg Tax’s projected inflation rate is an early estimate; the IRS typically issues official inflation-adjusted amounts later in the fall. News outlets and accounting publications commonly use Bloomberg’s projections as a planning reference before the IRS release.
Why it matters: advisors and taxpayers use preliminary projections like Bloomberg Tax’s to adjust withholding, year-end planning and retirement contributions. The projections also interact with Social Security cost-of-living estimates; recent internal reporting on Social Security COLA for 2027 clustered around a mid-3% figure, which analysts say aligns with Bloomberg’s inflation projection for tax indexing.
Sources
- Bloomberg Tax — 2027 Projected U.S. Tax Rates report showing a 3.2% inflation adjustment and coverage of bracket thresholds and the standard deduction.
- CBS News — article summarizing Bloomberg Tax’s projection that “each bracket’s income limits are projected to rise about 3.2% for inflation.”
- CPA Practice Advisor — coverage noting Bloomberg Tax & Accounting’s 2027 projected tax rates and their use by tax professionals.
