US Tax Changes 2027: What Is Already Set and What Is Still Pending
The Social Security wage base, HSA limits and the new Saver's Match are confirmed for 2027. Federal income tax brackets, the standard deduction and 401(k) limits come in the next few weeks.
Main change for 2027
Social Security wage base (2026: $184,500)
US federal tax parameters: 2026 vs 2027
| Parameter | 2026 | 2027 | Status |
|---|---|---|---|
| Social Security wage base | $184,500 | $192,300 | Adopted (SSA) |
| Medicare 1.45%; Additional Medicare 0.9% over $200,000 single | Same | Unchanged | Law, not indexed |
| Income tax rates | 10–37% (7 rates) | Unchanged | Adopted (OBBBA) |
| Bracket thresholds, single | $12,400 to $640,600 | Not yet published | Pending: IRS, late Oct |
| Standard deduction: single / joint | $16,100 / $32,200 | Not yet published | Pending: IRS, late Oct |
| Saver's Credit → Saver's Match | Non-refundable credit | 50% of up to $2,000 saved | Adopted (SECURE 2.0) |
| Scholarship donation credit (§25F) | — | Up to $1,700 | Adopted (OBBBA) |
| SALT deduction cap | $40,400 | $40,804 | By statute, +1% |
| HSA limit: self-only / family | $4,400 / $8,750 | $4,500 / $9,000 | Adopted (Rev. Proc. 2026-24) |
| 401(k) / 403(b) / 457 deferral limit | $24,500 | Not yet published | Pending: IRS, Oct–Nov |
| IRA contribution limit | $7,500 | Not yet published | Pending: IRS, Oct–Nov |
| Foreign earned income exclusion | $132,900 | Not yet published | Pending: IRS, late Oct |
Federal amounts only; state taxes are not covered. The 2027 SALT cap follows the statutory 1% increase; the IRS has not printed it yet.
Social Security and Medicare on a $200,000 salary
Employee share, adopted parameters only
Assumes one employer and the same gross in both years. Income tax is left out because the 2027 brackets are not published yet. Between $184,500 and $192,300 the increase is 6.2% of the part above $184,500.
Employees: retirement, health and deductions
Saver's Match replaces the Saver's Credit
The old non-refundable credit only cut tax owed, so savers with no federal income tax got nothing. From tax year 2027 the government instead deposits 50% of the first $2,000 you contribute, up to $1,000, into an eligible retirement account; deposits for 2027 arrive in 2028. Income limits apply. The IRS issued first guidance in Notice 2026-48 (August 2026); detailed rules are still to come.
HSA, 401(k) and IRA limits
HSA: $4,500 self-only, $9,000 family; the $1,000 catch-up is unchanged. A qualifying high-deductible plan needs a deductible of at least $1,750 and an out-of-pocket maximum of no more than $8,700 (self-only).
401(k) and IRA limits for 2027 are not out yet. The 2026 ones were published on 13 November 2025.
Itemizers: SALT cap and a scholarship credit
The SALT deduction cap rises 1% to $40,804, and its phase-down starts at $510,050 of modified AGI instead of $505,000. It keeps rising 1% a year through 2029, then drops back to $10,000 in 2030. A new non-refundable §25F credit of up to $1,700 applies to donations to scholarship-granting organizations, only in states that opt in; Treasury released its regulations on 1 October 2026.
Self-employed and freelancers
Higher cap for self-employment tax
SE tax is 12.4% Social Security on net earnings from self-employment up to $192,300, plus 2.9% Medicare with no cap. If your net SE earnings reach the cap, you pay up to $967.20 more (12.4% × $7,800); half of SE tax stays deductible. The $400 minimum §199A deduction (for at least $1,000 of active QBI) is indexed from 2027; the new amount comes with the pending Revenue Procedure.
Expats and newcomers
Americans abroad and visa holders
The foreign earned income exclusion is $132,900 for 2026; the 2027 figure is pending. Newcomers on H-1B, L-1 or O-1 visas usually become tax residents under the substantial presence test (183 days, weighted) and pay full federal tax and FICA, so the higher wage base applies to them. F-1 and J-1 nonresident students and scholars are generally FICA-exempt for their first years; no 2027 change was found.
Don't plan with projected brackets
FAQ
What is the Social Security wage base for 2027?
$192,300, up from $184,500 in 2026, as announced by the SSA on 14 October 2026. The maximum employee tax at 6.2% is $11,922.60; employers pay the same.
When will the 2027 tax brackets and standard deduction be published?
In the IRS's annual Revenue Procedure, which the IRS Priority Guidance Plan lists for October 2026; it is expected in late October. Rates stay at 10% to 37%; only thresholds and the standard deduction change with inflation.
What is the Saver's Match?
From tax year 2027 it replaces the Saver's Credit: the government deposits 50% of the first $2,000 you save, up to $1,000, into an eligible retirement account. Deposits for 2027 are made in 2028. Income limits apply.
Are the 2027 401(k) and IRA limits known?
Not yet. In 2026 they are $24,500 and $7,500, and the IRS usually announces the next year's limits between late October and mid-November. 2027 HSA limits are set: $4,500 and $9,000.
