As it does each year, the IRS has announced inflation adjustments to several tax credit and deduction amounts for 2027. This includes new 2027 income tax bracket thresholds, higher standard deduction amounts, and an increase in the additional standard deduction available to taxpayers age 65 and older.
As Kiplinger has noted, this extra standard deduction — which can be claimed in addition to the regular standard deduction — can help lower taxable income for many eligible retirees and older adults.
As Kiplinger has noted, this extra standard deduction — which can be claimed in addition to the regular standard deduction — can help lower taxable income for many eligible retirees and older adults.
Adding to those familiar annual adjustments, the Trump tax law introduced a "senior bonus deduction" for qualifying older adults last year. This extra benefit, available to itemizers and those who claim the standard deduction, took effect last year and is available through 2028.
Here’s more to know to plan for tax returns you'll file in early 2026 and 2027.
The Extra Standard Deduction for Those 65 and Older: The extra standard deduction can help older adults reduce their taxable income. Here's how.
Over 65 additional standard deduction for 2027 announced
For single filers and heads of household age 65 and over, the additional standard deduction increased slightly — from $2,050 for 2026 (returns you'll file earlier next year) to $2,100 for 2027 (returns you’ll file in early 2028).
For 2027, married couples over 65 filing jointly will also see a modest benefit.
- The extra deduction per qualifying spouse increased from $1,650 in 2026 to $1700 for 2027, a $50 increase per qualifying spouse.
- For couples where both partners are 65 or older, this translates to a total increase of $100 in their additional standard deduction.
New: 2027 Extra Standard Deduction Age 65 or Older (Single or Head of Household)
65 or older or blind | $2,100 |
65 or older and blind | $4,200 |
New: 2027 Extra Standard Deduction Age 65 and Older (Married Filing Jointly or Separately)
65 or older or blind | $1,700 per qualifying individual |
65 or older and blind | $3,400 per qualifying individual |
Those 65 or older and blind continue to receive double the additional amount. For 2027, that means an extra $4,200 for single filers or heads of household. (Twice the $2,100 for those 65 or older or blind.)
- Meanwhile, the 2027 amount will be $3,400 per qualifying spouse for those married filing jointly (i.e., $1700 x 2).
- These changes are typically important or those deciding between taking the standard deduction and itemizing.
While the inflation-adjusted amounts may seem small, depending on the financial situation and federal income tax bracket, some taxpayers over 65 may benefit from a modest tax reduction.
It’s also worth noting that the IRS announced inflation-adjusted federal income tax brackets for 2027.
Regular standard deduction rises for 2027
The IRS adjustments to the extra standard deduction for older adults come alongside increases in the standard deduction for all taxpayers.
The Tax Policy Center and other groups estimate that around 90% of people take the standard deduction rather than itemizing.)
- The Trump tax law enacted on July 4, 2025, changed the 2025 standard deduction to $15,750 for single taxpayers, $31,500 for joint filers, and $23,625 for head of household.
- With the latest inflation adjustments, the standard deduction amounts are as follows for 2027 (returns filed in early 2028):
New: Standard Deduction 2027 Amounts
Married Filing Joint and Surviving Spouses | $33,200 | Increase of $700 from the prior tax year |
Single and Married Filing Separately | $16,600 | Increase of $350 from the prior tax year |
Heads of Household | $24,950 | Increase of $525 from the prior tax year |
For more information, see: Standard Deduction 2027 Amounts Are Here.
$6,000 senior bonus deduction
Additionally, as Kiplinger has reported, the Trump tax overhaul introduced a temporary and separate $6,000 bonus deduction for those age 65 and older.
- The bonus deduction is available to individuals age 65 and older, with eligibility set at $75,000 in income for single filers and $150,000 for couples, and phasing out above those levels.
- But the provision is temporary. It is only available from tax years 2025 through 2028.
- It supplements, but doesn't replace, the existing extra standard deduction already available to older adults who take the standard deduction.
Note: The new bonus deduction applies regardless of whether you itemize or take the standard deduction.
As a result, it could help those with sufficient deductible expenses to itemize, but who also want to further reduce their taxable income.
For more information, see our report: How the 'Senior Bonus Deduction' Works.
Impact of 2027 deduction changes for 'seniors'
With affordability top of mind for many people across the country due to persistently high costs of living, the IRS's newly released 2027 inflation-adjusted numbers are just one piece of the financial puzzle.
And while the new bonus deduction for older adults could help many taxpayers, how it impacts you depends on your specific tax situation.
Consider consulting a tax professional to understand how new inflation-adjusted amounts may (or may not) affect your overall tax liability for the upcoming tax season and beyond.
Related
- The Extra Standard Deduction for People 65 or Older
- Calculating Taxes on Social Security Benefits
- How the 6K Senior Bonus Deduction Works
- What a New Flat-Rate COLA Would Mean for Retiree Taxes