InvestmentNews reported on Nov. 6, 2026, that the Internal Revenue Service has released inflation-adjusted figures for 2027 that give high-income clients more room before the top federal rates apply. The report, written by Leo Almazora, ties the changes to Revenue Procedure 2026-35 and walks through the thresholds advisors are most likely to use with wealthy clients.
The IRS announced the 2027 inflation adjustments on Nov. 5, 2026, in a news release numbered IR-2026-133, covering almost 70 provisions of the tax code. According to the release, the adjustments generally apply to returns filed in 2028. The agency's chief executive, Frank J. Bisignano, is quoted in the release on the changes.
On income tax, InvestmentNews reported that the 37% bracket begins at $793,650 of income for joint filers and $661,375 for single filers. Joint filers pay 0% on long-term capital gains up to $102,100 of taxable income and 15% on gains up to $633,600, the outlet said. A non-grantor trust reaches the 37% rate above $16,500 of taxable income.
The estate and gifting figures are where many advisors will focus. The IRS release sets the estate basic exclusion at $15,480,000 for decedents dying in 2027, up from $15,000,000 for 2026. InvestmentNews reported that the annual gift exclusion rises to $20,000 from $19,000, and that a married couple using both spouses' exclusions can shelter $30.96 million. For context, CNBC noted that legislation passed in 2025 fixed the estate and gift exemption at $15 million per person, and that without it the figure would have dropped to about $5 million, adjusted upward for inflation.
InvestmentNews also reported several business-related changes. The per-issuer gain exclusion cap for qualified small business stock under Section 1202 is $15,480,000 for 2027, and the gross-asset ceiling is $77,390,000. Section 179 expensing rises to $2,640,000 from $2,560,000. The IRS release lists the 2027 standard deduction at $33,200 for joint filers, up $1,000 from 2026, and sets the alternative minimum tax exemption at $93,000 for unmarried filers and $144,700 for joint filers.
Forbes reported that the inflation adjustment is about 3.2%, based on the chained CPI, compared with 2.7% the prior year. InvestmentNews said Bloomberg Tax had projected a 3.2% increase in September and that the IRS figures came in close to that projection, differing only by a rounding difference. A financial advisor trade outlet suggested that advisors could use the release as a reason to revisit estate and gifting approaches.
InvestmentNews was founded under Crain Communications, which the outlet describes as a family-owned media company based in Detroit. Crain sold the title in August 2018 to London-based Vitesse Media plc for about $27.1 million, a sale price rather than an asset figure. The deal closed on Aug. 17, 2018. Vitesse was later renamed Bonhill. RIABiz reported that Bonhill put InvestmentNews up for sale in October 2022, citing cash burn and losses tied to COVID-era events, and that Bonhill received indicative offers in December 2022. Sources differ on the founding year and headquarters, so those details should be checked before they are repeated.
Advisors reviewing client plans for 2027 should compare the bracket, exclusion and deduction figures directly against the IRS release, since the adjustments generally apply to returns filed in 2028. Estate and gifting plans built around the 2026 exclusion will need to account for the higher 2027 amounts, and business owners considering Section 179 or Section 1202 should note the revised limits.