Tracker · Checked October 25, 2026
2027 paycheck changes: what is confirmed and what is still coming
Five states have income tax cuts set for January 1, 2027, the 2027 HSA limits are out, and the Social Security wage base rises to $192,300. The 2027 federal tax brackets and standard deduction have not been published yet. We add each one here, with its source, when it is released.
States that cut income tax in 2027
What a $75,000 salary keeps from the state cut alone, single filer, using our paycheck math with only the state’s 2027 rate changed:
| State | Top rate 2026 | Top rate 2027 | Saves on $50,000 | Saves on $75,000 | Saves on $100,000 | Saves on $150,000 |
|---|---|---|---|---|---|---|
| North Carolina | 3.99% | 3.49% | $186 | $311 | $436 | $686 |
| Nebraska | 4.55% | 3.99% | $92 | $232 | $372 | $652 |
| Mississippi | 4% | 3.75% | $79 | $142 | $204 | $329 |
| Montana | 5.65% | 5.4% | $0 | $108 | $214 | $338 |
| Indiana | 2.95% | 2.9% | $24 | $37 | $50 | $74 |
North Carolina
Flat rate falls from 3.99% to 3.49% beginning in tax year 2027, an automatic cut set by statute once revenue triggers are met (NC Office of State Budget and Management, May 2026). Source: NC Office of State Budget and Management, Scheduled Income Tax Cuts.
Nebraska
Top rate falls from 4.55% to 3.99% for tax year 2027, the end of the phase-down in LB754 (2023). Our estimate keeps the 2026 bracket thresholds until Nebraska publishes 2027 tables. Source: Nebraska Legislature, Revenue Session Review 2023.
Mississippi
Rate on taxable income over $10,000 falls from 4% to 3.75% for 2027, then 0.25 points a year to 3% in 2030 (Build Up Mississippi Act, signed March 27, 2025). Source: Thomson Reuters Tax, Mississippi governor signs legislation phasing out individual income tax.
Montana
Top rate falls from 5.65% to 5.4%, and the 4.7% bracket widens to $65,000 of taxable income ($130,000 joint), under HB 337 (2025). Source: Montana Legislative Fiscal Division, 2029 Biennium Outlook: Income and Property Changes (June 2026).
Indiana
Flat rate falls from 2.95% to 2.9% on January 1, 2027, the last step of the cut passed in 2023. Source: Tax Foundation, State Tax Changes Taking Effect January 1, 2026.
Savings are yearly state income tax only, single filer, no pre-tax deductions, with 2026 federal rules held constant. Your paycheck may change more or less once the 2027 federal numbers are out.
Federal changes already confirmed for 2027
| What | 2026 | 2027 | Source |
|---|---|---|---|
| HSA contribution limit | $4,400 self-only / $8,750 family | $4,500 self-only / $9,000 family High-deductible plan minimum deductible: $1,750 self-only / $3,500 family. Out-of-pocket maximum: $8,700 / $17,400. | IRS Rev. Proc. 2026-24 |
| No tax on overtime deduction | Up to $12,500 ($25,000 joint) | Still in effect: up to $12,500 ($25,000 joint) The deduction runs for tax years 2025 through 2028. | IRS, Working Families Tax Cuts |
| No tax on tips deduction | Up to $25,000 | Still in effect: up to $25,000 The deduction runs for tax years 2025 through 2028. | IRS, Working Families Tax Cuts |
| Social Security wage base | $184,500 | $192,300 The 6.2% employee Social Security tax stops once wages pass this amount. Benefits rise 3.6% (COLA) in January 2027. | Social Security Administration, announced October 14, 2026 (reported by the Journal of Accountancy) |
| State minimum wages | See each state | 16 states raise the minimum wage in 2027, most on January 1 Full list with rates and sources: /2027-minimum-wage-increases | PayrollChecks employer rules tracker |
Not published yet
As of October 25, 2026, these 2027 figures have not been released. Until they are, our calculators use the 2026 numbers below.
| What | 2026 figure we use now | Who publishes the 2027 figure |
|---|---|---|
| Federal income tax brackets | 10% to 37%; 12% starts at $12,400 (single) | IRS (yearly inflation revenue procedure) |
| Standard deduction | $16,100 single / $32,200 married filing jointly / $24,150 head of household | IRS (yearly inflation revenue procedure) |
| 401(k) contribution limit | $24,500 ($8,000 catch-up at 50+, $11,250 at 60 to 63). History: /401k-contribution-limits | IRS (yearly notice on retirement plan limits) |
| State paid leave and disability rates (CA, NY, NJ, WA, MA and others) | On each state page | Each state agency, usually in the fall or December |
What to do now
- If you live in North Carolina, Nebraska, Mississippi, Montana, Indiana, your state withholding should drop with your first 2027 paycheck. Check it against our paycheck calculator in January.
- If you have an HSA, you can put $100 more in for 2027 ($250 more for family coverage).
- Overtime and tip deductions are claimed on your tax return, not taken out of each paycheck, so keep your pay stubs.
- Moving in 2027? Compare take-home pay in two states.
Frequently asked questions
Which states are cutting income taxes in 2027?
North Carolina (3.99% to 3.49%), Nebraska (4.55% to 3.99%), Mississippi (4% to 3.75%), Montana (5.65% to 5.4%), Indiana (2.95% to 2.9%). Each cut takes effect January 1, 2027.
Have the 2027 federal tax brackets been released?
Not as of October 25, 2026. The IRS publishes them each year in a revenue procedure; we will add them here when it is out.
What is the 2027 HSA limit?
$4,500 for self-only coverage and $9,000 for family coverage (IRS Rev. Proc. 2026-24).
See also: take-home pay by state and 2026 tax brackets.