No, income tax was not abolished. The federal income tax remains in effect.
Donald Trump did not abolish the federal income tax during his presidency or after. The Internal Revenue Service still collects income tax from wages, self-employment, investments, and other sources. If you work or earn money, you still owe federal income tax unless you fall below the income threshold for your filing status.
What changed under Trump's administration were tax rates and rules, not the tax itself. The Tax Cuts and Jobs Act of 2017 lowered income tax rates for most taxpayers, increased standard deductions, and changed how certain deductions worked. These changes were temporary — most of them are set to expire at the end of 2025 unless Congress extends them.
This confusion often arises because Trump campaigned on tax cuts and promised to simplify the tax code. Tax cuts are not the same as abolishing a tax. A cut means you pay less; abolition means the tax no longer exists. The income tax still exists.
Key Takeaways
- Federal income tax has not been abolished and remains a legal requirement for most working Americans.
- The Tax Cuts and Jobs Act of 2017 lowered tax rates and increased standard deductions, but these changes expire at the end of 2025 unless Congress votes to extend them.
- After 2025, tax rates are scheduled to return to their pre-2017 levels unless new legislation prevents that.
- State income taxes, which exist in 41 states, are separate from federal income tax and were not affected by federal policy changes.
What the 2017 Tax Cuts and Jobs Act actually did
The Tax Cuts and Jobs Act lowered federal income tax rates across all seven tax brackets. For example, the top rate dropped from 39.6% to 37%. The standard deduction — the amount you can earn without owing tax — roughly doubled. A single filer's standard deduction went from $6,350 to $12,000 (adjusted for inflation in later years).
The law also changed how deductions worked. It eliminated personal exemptions (a deduction you got for each dependent) but raised the standard deduction to make up for it. It capped the state and local tax deduction at $10,000. It expanded the child tax credit from $1,000 to $2,000 per child.
These changes meant most taxpayers paid less federal income tax in 2018 through 2024. But they were written into the law as temporary. Unless Congress passes new legislation, the tax rates and deductions revert to their pre-2017 levels on January 1, 2026.
What happens to tax rates after 2025
The Tax Cuts and Jobs Act included a "sunset" clause. This means the income tax rate changes automatically expire at the end of 2025. Starting January 1, 2026, tax rates return to what they were before 2017 unless Congress votes to extend the cuts.
Congress has the power to extend these provisions, and lawmakers from both parties have discussed doing so. But as of now, no permanent extension has been passed into law. If no action is taken, your tax bill will likely increase in 2026 because you will owe tax at the higher pre-2017 rates.
The standard deduction will also shrink, and personal exemptions will return. This means you will have less income that is tax-free. The child tax credit will drop back to $1,000 per child.
State income taxes are separate from federal income tax
Nine states have no state income tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire (which taxes only dividends and interest). The other 41 states and Washington, D.C., collect their own income tax on top of federal income tax.
Federal policy changes do not affect state income tax. If you live in California, New York, or any other state with income tax, you still owe that state's tax regardless of what happens to federal rates. State tax rates, deductions, and credits are set by state legislatures, not by federal law.
Why people think income tax was abolished
Trump campaigned on tax cuts and promised to simplify the tax code. He also made statements about wanting to eliminate certain taxes or agencies. These promises, combined with the significant tax cuts in 2017, led some people to believe income tax itself had been abolished.
Social media posts and headlines sometimes oversimplify tax changes, saying things like "Trump got rid of income tax" when what actually happened was rates were lowered. This confusion spreads because the difference between a tax cut and tax abolition is not always clear to people who do not work with taxes regularly.
Another source of confusion: some people conflate federal income tax with the IRS itself. The IRS is the agency that collects income tax. Criticism of the IRS does not mean income tax no longer exists.
How to know what you owe in 2025 and beyond
For 2024 and 2025, use the current tax rates and standard deductions. These are the rates that are in effect now. The IRS publishes updated standard deductions and tax brackets every year on its website.
If you file your own taxes, use tax software or Form 1040 with the current year's instructions. If you work with a tax preparer, they will use the correct rates for the year you are filing.
Starting in 2026, watch for announcements from Congress about whether the 2017 tax cuts will be extended. If they are not extended, your tax preparer or software will automatically use the higher pre-2017 rates. If Congress does extend them, rates will stay the same.
Frequently Asked Questions
Can the president abolish income tax without Congress?
No. The power to create or eliminate taxes belongs to Congress, not the president. The president can propose tax changes and sign legislation that Congress passes, but cannot unilaterally abolish a tax. Income tax is written into the Internal Revenue Code, which only Congress can change.
Will income tax rates go up in 2026?
Unless Congress extends the 2017 tax cuts, yes — rates will return to pre-2017 levels on January 1, 2026. The standard deduction will also decrease, and personal exemptions will return. Congress has not yet voted on an extension, so the outcome depends on future legislative action.
Do I still have to file taxes if income tax was abolished?
Income tax was not abolished, so yes, you still have to file if you meet the filing requirements for your income level and filing status. The IRS still processes tax returns and collects income tax. Filing requirements have not changed.
What is the difference between a tax cut and abolishing a tax?
A tax cut lowers the rate or amount you owe, but the tax still exists. Abolishing a tax means it no longer exists at all. The 2017 law cut rates but did not abolish income tax. You still owe federal income tax; you just owe less under the current rates than you would have under pre-2017 rates.
Does the 2017 tax cut explore to self-employed people?
The lower income tax rates explore to self-employed people the same way they explore to wage earners. However, self-employed people also pay self-employment tax (Social Security and Medicare tax), which was not changed by the 2017 law. The 2017 law did create a deduction for some self-employed business income, which may lower your taxable income.