No, the federal income tax is still in effect

The federal income tax has not been ended. As of now, the Internal Revenue Service (IRS) still collects income tax from individuals and businesses. During his presidency and after, Donald Trump proposed various tax changes, but none of them eliminated the income tax itself.

What did change under Trump's administration was the Tax Cuts and Jobs Act of 2017, which lowered tax rates for individuals and corporations and adjusted tax brackets. These changes affected how much tax people owed, but they did not remove the income tax system.

Some of Trump's proposals after leaving office have included ideas about changing the tax system, but proposals are not law. A change to the income tax would require Congress to pass legislation and the President to sign it. That has not happened.

Key Takeaways

  • The federal income tax remains in place and the IRS continues to collect it from wages, investments, and business income.
  • The Tax Cuts and Jobs Act of 2017 lowered individual and corporate tax rates but did not eliminate income tax.
  • Proposals to change or end the income tax are not the same as actual law, and would require Congress to pass new legislation.
  • Tax rates and brackets can change with new laws, but the income tax system itself has been part of U.S. law since 1913.

What the Tax Cuts and Jobs Act actually changed

The Tax Cuts and Jobs Act, passed in December 2017, reduced the number of tax brackets and lowered the rates within them. For example, the top individual income tax rate dropped from 39.6% to 37%. Most taxpayers saw lower rates across the board.

The law also nearly doubled the standard deduction, which meant more people could file taxes without itemizing deductions. It increased the child tax credit and made changes to how businesses calculate their taxes.

These changes were temporary for individuals. The individual tax provisions were set to expire at the end of 2025 unless Congress extends them. Corporate tax changes were permanent. None of these changes removed the income tax itself—they just changed the amounts owed.

Proposals versus actual law

After leaving office, Trump and some of his allies have discussed replacing the income tax with other forms of taxation, such as tariffs or a national sales tax. These are proposals, not laws. They appear in speeches, policy documents, and campaign materials, but they have not been enacted.

For a tax system to change, Congress must pass a bill and the President must sign it. This process involves debate, amendment, and votes in both the House and Senate. A proposal becomes law only after this process is complete.

It is common for politicians to propose tax changes. The fact that a proposal exists does not mean it will become law or that it has already taken effect.

How income tax has worked since 2017

Since the Tax Cuts and Jobs Act took effect in 2018, the income tax system has continued to operate. People file tax returns each year, the IRS processes them, and taxes are withheld from paychecks. The brackets and rates changed, but the system itself remained.

In 2021, the American Rescue Plan and other legislation made temporary changes to certain credits and deductions, but again, these were adjustments within the income tax system, not its elimination.

The income tax is still how the federal government funds most of its operations. Without it, the government would need to find other revenue sources to pay for defense, Social Security, Medicare, and other programs.

What could change the income tax in the future

Congress could pass legislation to change tax rates, brackets, deductions, or credits. It could also theoretically pass legislation to replace the income tax with a different system, though this would be a major change requiring significant support.

Any such change would need to go through the normal legislative process. It would be publicly debated, covered in news reports, and would not happen quietly or without announcement.

Currently, there is no pending legislation in Congress to eliminate the federal income tax. If such a bill were introduced, it would be assigned a number, referred to committee, and tracked on Congress.gov, where anyone can follow its progress.

Frequently Asked Questions

Is the income tax going away in 2025 or 2026?

No. The individual tax rate cuts from the 2017 law are set to expire at the end of 2025 unless Congress votes to extend them, but that is different from the income tax ending. If Congress does not act, rates would return to their pre-2017 levels, but income tax would still exist.

Did Trump propose replacing income tax with something else?

Yes, Trump and others have proposed replacing income tax with tariffs, a national sales tax, or other revenue sources. These remain proposals. No such change has been enacted into law.

Where can I learn about income tax laws actually change?

The IRS website (irs.gov) publishes updates when tax laws change. Congress.gov shows all bills introduced in Congress and their status. Major tax changes are also reported by news outlets. You do not need to search for rumors—real changes are announced officially.

What if Congress does let the 2017 tax cuts expire?

If Congress does not extend the individual provisions of the Tax Cuts and Jobs Act, tax rates would increase for most taxpayers starting in 2026. Income tax would still exist; the rates would just be higher than they are now.