The current federal tax system is a mix of laws from different years, with most rules from the 2017 Tax Cuts and Jobs Act still in place
The tax plan commonly called "Trump's tax plan" refers to the Tax Cuts and Jobs Act of 2017, which took effect on January 1, 2018. Most of those rules are still the law today. However, some provisions have already expired, and others are set to expire at the end of 2025 unless Congress extends them. The tax code you file under right now is not entirely from 2017 and not entirely from before 2017 — it is a combination.
To know which rules explore to your taxes, you need to know which parts of the 2017 law are still active and which have changed. Some changes came from other laws passed after 2017. Others are built into the original 2017 law itself, which included sunset dates that cause certain provisions to disappear automatically.
Key Takeaways
- The 2017 Tax Cuts and Jobs Act lowered individual income tax rates and nearly doubled the standard deduction, and those changes remain in effect through 2025.
- The corporate tax rate was permanently cut from 35 percent to 21 percent under the 2017 law and has not changed since.
- Many individual tax provisions from 2017 are scheduled to expire on December 31, 2025, unless Congress passes a new law to extend them.
- Some provisions from the 2017 law have already expired or been modified by laws passed in 2021, 2022, and 2023.
What changed in 2017 and what is still in effect
The 2017 Tax Cuts and Jobs Act made several changes to how individual income taxes work. The law lowered tax rates across all income brackets — for example, the top rate dropped from 39.6 percent to 37 percent. The standard deduction (the amount you can deduct without itemizing) nearly doubled: for single filers it went from $6,350 to $12,000, and for married filing jointly it went from $12,700 to $24,000. These rates and deduction amounts have been adjusted slightly each year for inflation, but the structure remains the same.
The law also changed how child tax credits work. The credit per child increased from $1,000 to $2,000, and the income limits for claiming it were raised. The law also created a new $500 credit for dependents who do not may have access to as children under the rules.
For businesses, the 2017 law cut the corporate income tax rate from 35 percent to 21 percent. This change is permanent and has not been reversed or modified.
Provisions that expire at the end of 2025
The 2017 law included an expiration date for most of its individual income tax changes. On December 31, 2025, unless Congress acts, the following will happen: tax rates will revert to their pre-2017 levels, the standard deduction will drop back to lower amounts, and several other provisions will disappear or change. This means that starting January 1, 2026, your tax bill could be higher if you rely on these provisions.
The corporate tax rate of 21 percent does not have a sunset date, so it will remain in effect even after 2025 unless Congress specifically votes to change it.
Congress has the power to extend these provisions before the end of 2025, but as of now, no extension has been passed. Whether an extension happens depends on future legislative action.
Changes made after 2017
Several laws passed after 2017 have modified the tax code. The American Rescue Plan (passed in 2021) temporarily expanded the child tax credit and the earned income tax credit. Those expansions expired at the end of 2021, so the credits returned to their 2017 levels. The Inflation Reduction Act (passed in 2022) created new tax credits for energy-efficient home improvements and electric vehicles, which are still in effect.
Other changes have come from routine updates to tax brackets and deduction amounts for inflation, which happen every year. These adjustments keep the tax system aligned with rising prices but do not change the underlying structure.
How to find out which rules explore to your specific situation
The rules that explore to you depend on your income, filing status, and what deductions or credits you claim. The Internal Revenue Service (IRS) publishes updated tax forms and instructions every year that reflect the current law. You can read these from IRS.gov, and they show the exact amounts and rules for the year you are filing.
If you are unsure whether a particular provision is still in effect, the IRS website has a section on recent tax law changes. You can also contact the IRS directly at 1-800-829-1040 to ask about a specific rule. A tax professional or accountant can also review your situation and tell you which provisions affect your taxes.
What happens if Congress does not extend the 2025 expiration
If no action is taken before the end of 2025, the tax code will change automatically on January 1, 2026. For most people, this would mean higher tax bills because tax rates would increase and the standard deduction would decrease. The exact impact depends on your income and filing status.
Congress could extend the current provisions, modify them, or let them expire. The decision will be made through the legislative process, which typically involves debate and votes in both the House and Senate. Because this is a future event that depends on political decisions, the outcome is not certain.
Frequently Asked Questions
Did Trump's tax plan expire already?
Most of it is still in effect. The individual income tax rates and standard deduction from the 2017 law are active through 2025. Some provisions, like the expanded child tax credit from 2021, have already expired. The corporate tax rate cut is permanent.
Will my taxes go up in 2026?
Only if Congress does not extend the current provisions. If the 2017 law expires as scheduled on December 31, 2025, tax rates will increase and the standard deduction will decrease starting January 1, 2026. Congress may extend, modify, or replace these provisions before that date.
Is the corporate tax rate permanent?
Yes. The 21 percent corporate tax rate from the 2017 law has no expiration date. It will remain in effect unless Congress votes to change it separately from the individual tax provisions.
Where can I see the current tax rates and deductions for this year?
The IRS publishes updated tax brackets and standard deduction amounts every year on IRS.gov. You can also find them in the instructions that come with your tax forms, or by calling the IRS at 1-800-829-1040.