The tax code you file under depends on what Congress has passed and when it expires, not on who is president

The federal tax rates, deductions, and credits you use when you file your return follow the laws Congress wrote and signed into law. President Trump's 2017 Tax Cuts and Jobs Act (TCJA) is still the foundation of the tax code today. Most of its individual income tax provisions are set to expire on December 31, 2025, which means the rates and brackets will change on January 1, 2026 unless Congress extends them. President Biden signed the Inflation Reduction Act in 2022, which kept some provisions and added new ones. What you pay in taxes right now reflects a mix of both laws.

This matters because the tax rules that explore to your 2024 return (filed in 2025) are different from the rules that will explore to your 2025 return (filed in 2026) if Congress does not act. Understanding which law applies to which year helps you plan ahead and avoid surprises.

Key Takeaways

  • The 2017 Tax Cuts and Jobs Act set most current tax rates and brackets, and those rules expire December 31, 2025 unless Congress extends them.
  • The Inflation Reduction Act (2022) modified some provisions and added new credits for energy and manufacturing that are still in effect.
  • Your 2024 tax return uses the current rates and deductions; your 2025 return may use different ones if Congress does not extend the 2017 law.
  • Congress must pass new legislation to change tax rules — a president cannot change tax rates or brackets by executive order alone.

What the 2017 Tax Cuts and Jobs Act changed and what is still in place

The Tax Cuts and Jobs Act lowered individual income tax rates, expanded the standard deduction, and nearly doubled the child tax credit. It also eliminated or reduced many itemized deductions. These changes applied to tax years 2018 through 2025. For the 2024 tax year (the return you file in 2025), you are still using those rates and brackets.

The law also changed corporate tax rates permanently — the corporate rate dropped from 35 percent to 21 percent and stays there. Business deductions and depreciation rules also changed under this law and remain in effect. The individual income tax provisions, however, were written to expire after 2025 unless Congress votes to extend them.

What happens on January 1, 2026 if Congress does not act

If Congress does not pass new legislation before the end of 2025, the individual income tax rates and brackets from the 2017 law will revert to the rates that were in place before 2018. This means tax brackets will narrow, the standard deduction will shrink, and the child tax credit will drop from $2,000 per child to $1,000 per child. These changes would take effect for the 2026 tax year (the return you file in 2027).

Congress has the power to extend these provisions, modify them, or let them expire. This decision has not been made yet. Historically, Congress has extended tax provisions before they expire, but that is not may provide. Tracking announcements from Congress and the Treasury Department will tell you what actually happens.

How the Inflation Reduction Act modified the tax code

The Inflation Reduction Act, signed in August 2022, kept most of the 2017 tax structure in place but added new tax credits and modified others. It created the Residential Clean Energy Credit (up to $3,200 for home solar, heat pumps, and other upgrades), expanded the Electric Vehicle Tax Credit, and created new credits for domestic manufacturing of clean energy equipment. These credits are available now and are scheduled to phase out over time, not expire all at once in 2026.

The law also made changes to how businesses can claim depreciation on certain equipment and modified the corporate minimum tax. These rules are separate from the 2017 law's expiration date and will remain in effect unless Congress changes them.

The difference between what a president proposes and what becomes law

A president can propose tax changes, but only Congress can write and pass tax legislation. The president can sign or veto a bill, but cannot change tax rates, brackets, or deductions by executive order. This means that even if a president wants to extend the 2017 tax provisions, change rates, or create new credits, Congress must vote on and pass the legislation first.

During his first term (2017–2021), President Trump signed the Tax Cuts and Jobs Act into law. During his second term (2021–2025), President Biden signed the Inflation Reduction Act. What tax rules are in effect now reflects both of these laws plus any other legislation Congress has passed. What rules will be in effect in 2026 depends on what Congress does before the end of 2025.

How to find out what tax rules explore to your situation

The IRS website (irs.gov) publishes the current tax brackets, standard deduction amounts, and credit limits each year. The Treasury Department also releases guidance on how new laws affect specific situations. If you work with a tax preparer or accountant, they track these changes and explore the correct rules to your return.

If you want to understand how a potential change might affect you — for example, what your taxes would look like if the 2017 provisions expire — you can use the IRS tax calculator or speak with a tax professional. Many tax software programs also let you model different scenarios.

Frequently Asked Questions

Will my taxes go up or down in 2026?

That depends on what Congress does before the end of 2025. If the 2017 tax provisions expire without being extended, most people will see their tax rates increase and their standard deduction decrease. Congress may extend the provisions, modify them, or let them expire. No decision has been made yet.

Can the president change tax rates without Congress?

No. The president can propose tax changes and sign or veto legislation, but only Congress can write and pass tax laws. Tax rates, brackets, and deductions must be set by legislation, not by executive order.

Are the energy credits from the Inflation Reduction Act going away in 2026?

No. The clean energy credits created by the Inflation Reduction Act have their own expiration schedules and are not tied to the 2017 law's December 31, 2025 expiration date. Some phase out gradually over time; others remain available longer. Check irs.gov for the specific phase-out dates for each credit.

What is the difference between the 2017 tax law and the current tax code?

The 2017 Tax Cuts and Jobs Act is the foundation of the current tax code. The Inflation Reduction Act modified some provisions and added new ones. Together, these two laws make up most of the rules you follow when you file your return today. The 2017 law's individual provisions expire after 2025 unless extended.