The Tax Cuts and Jobs Act of 2017 is still the law, with some provisions set to expire after 2025
Yes, most of the tax changes from the Trump administration remain in effect. The major law was the Tax Cuts and Jobs Act (TCJA), passed in December 2017. Some of its rules are permanent. Others are scheduled to expire on December 31, 2025, unless Congress extends them before that date.
The parts that are permanent include lower corporate tax rates and changes to how business income is taxed. The parts set to expire are mostly the individual income tax changes — the tax brackets, standard deduction amounts, and child tax credits that affect most wage earners. This means your tax bill could change in 2026 if Congress does not act.
The rules you file under right now are the TCJA rules as they exist today. Understanding which ones expire matters if you are planning ahead or wondering why tax law might shift.
Key Takeaways
- The Tax Cuts and Jobs Act of 2017 lowered individual income tax rates and raised the standard deduction, and these changes remain in place through 2025.
- Individual income tax provisions expire on December 31, 2025, unless Congress votes to extend them before that date.
- Corporate tax rates and business income tax rules from the TCJA are permanent and will not expire.
- Your current tax brackets, standard deduction, and child tax credit amounts are based on the TCJA and may change in 2026.
What parts of the Trump tax law are still in effect right now
The individual income tax rates set by the TCJA are still the law. For the 2024 tax year (filed in 2025), the tax brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These are lower than the rates that existed before 2018. The standard deduction — the amount you can deduct without itemizing — is also higher than it was before the TCJA. For 2024, the standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly.
The child tax credit is $2,000 per child under age 17, up from $1,000 before the TCJA. The credit for other dependents is $500. These amounts have not changed since 2017.
The corporate tax rate is a flat 21%, down from a graduated system that topped out at 35%. This change is permanent and will not expire.
Which tax rules expire after 2025
The individual income tax provisions of the TCJA are set to expire on December 31, 2025. This means the tax brackets, standard deduction, and dependent credits will revert to what they were before 2017 unless Congress extends them. If that happens, tax brackets will widen (meaning more income falls into lower brackets), and the standard deduction will drop.
The exact amounts after 2025 are not set yet because they depend on inflation adjustments that have not been calculated. However, the structure will return to the pre-2017 system unless Congress votes to keep the current rules in place.
Business-related provisions, including the 20% deduction for pass-through business income and the lower corporate rate, are permanent and will not expire.
What happens if Congress does not extend these rules
If the individual income tax provisions expire without an extension, your tax bill could increase. The tax brackets would become narrower, meaning more of your income would be taxed at higher rates. The standard deduction would drop, which means fewer people would be able to deduct a large amount without itemizing. The child tax credit would fall back to $1,000 per child.
Congress has extended expiring tax rules before. In 2012, Congress extended many provisions that were set to expire. Whether that happens again depends on future legislative action, which is not certain. Tax planning for 2026 and beyond should account for the possibility that these rules will change.
How the TCJA changed your taxes compared to before 2017
For most wage earners, the TCJA lowered the amount of federal income tax owed. The tax brackets were compressed — the top rate dropped from 39.6% to 37%, and the other rates shifted downward as well. The standard deduction roughly doubled. For a single person, it went from $6,350 in 2017 to $14,600 in 2024 (adjusted for inflation).
For people who itemize deductions, the TCJA capped the deduction for state and local taxes (SALT) at $10,000 per year. This affected high-income earners and people in high-tax states more than others. The deduction for mortgage interest was also limited to loans of $750,000 or less, down from $1 million.
For businesses, the corporate tax rate drop from 35% to 21% was significant. The TCJA also allowed businesses to deduct 100% of the cost of equipment purchases in the year they bought it, rather than spreading the cost over several years.
What you should know about tax planning with these rules in mind
If you are making financial decisions based on current tax rates, keep in mind that the individual income tax rules could change in 2026. This matters if you are deciding whether to take income in 2025 or 2026, or if you are planning large charitable donations or business expenses.
The corporate rate and business provisions are permanent, so those are stable for long-term planning. If you own a business or have pass-through income, the current rules should remain in place.
Tax law can change at any time, and Congress could pass new legislation before 2025 that alters the current rules. It is worth checking the current tax year's rules each year rather than assuming they will stay the same.
Frequently Asked Questions
Will my tax brackets definitely go back to the old rates in 2026?
Only if Congress does not extend the current rules. The law as written now says the individual income tax provisions expire on December 31, 2025. Congress would need to pass a new law to keep them in place. Whether that happens is not certain and depends on future legislative decisions.
Is the corporate tax rate of 21% permanent?
Yes. The corporate tax rate and most business-related provisions of the TCJA are permanent and will not expire. They can only be changed if Congress passes a new law.
What is the standard deduction for 2024?
The standard deduction for 2024 is $14,600 for single filers, $29,200 for married couples filing jointly, and $21,900 for heads of household. These amounts are adjusted each year for inflation.
Does the child tax credit expire in 2025?
The child tax credit amount of $2,000 per child is set to expire on December 31, 2025, along with other individual income tax provisions. After that date, it would revert to $1,000 per child unless Congress extends it.
Can I deduct state and local taxes on my federal return?
Yes, but only up to $10,000 per year under the TCJA. This cap applies to the combined total of state income taxes, sales taxes, and property taxes. This rule is set to expire in 2025 as well.