The Tax Cuts and Jobs Act of 2017 is still the law

Yes, the tax code that took effect under Donald Trump in 2018 is still in place. That law, formally called the Tax Cuts and Jobs Act, made major changes to tax rates, deductions, and how businesses are taxed. Unless Congress passes a new tax law, those changes remain in effect for your 2024 tax return and beyond.

The key point: the tax brackets you pay into, the standard deduction amount, and most of the rules about what you can deduct are all from that 2017 law. Some parts of it are set to expire on their own after 2025, but as of right now, they have not expired yet.

Key Takeaways

  • The Tax Cuts and Jobs Act of 2017 remains the active tax code for federal income tax, affecting tax rates, deductions, and filing thresholds.
  • The standard deduction is currently higher than it was before 2018, and individual income tax rates are lower across most brackets.
  • Many provisions of the 2017 law are scheduled to expire after December 31, 2025, unless Congress votes to extend them.
  • State and local taxes, capital gains rates, and business tax rules all reflect the 2017 law unless your state has passed its own changes.

What changed in 2018 under the Trump tax code

The 2017 law lowered income tax rates for most individual filers. The number of tax brackets stayed at seven, but the percentages in each bracket went down. For example, the top rate dropped from 39.6% to 37%.

The standard deduction — the amount you can deduct without itemizing — roughly doubled. For 2024, the standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly. Before 2018, those numbers were much lower.

The law also eliminated or reduced many itemized deductions. The deduction for state and local taxes (SALT) was capped at $10,000 per year. The deduction for mortgage interest was limited to loans of $750,000 or less, down from $1 million. These changes made it less attractive for many people to itemize deductions instead of taking the standard deduction.

What is scheduled to expire after 2025

Most of the individual income tax changes — the lower rates, the higher standard deduction, the changes to deductions — are set to expire on December 31, 2025. This means that unless Congress votes to extend them, tax rates and deductions will revert to what they were before 2018.

Business tax changes in the 2017 law are permanent. The corporate tax rate was cut from 35% to 21% and stays at 21% unless Congress changes it separately.

Because these provisions expire after 2025, Congress will likely debate whether to extend them, modify them, or let them expire. That debate will happen in 2025 or early 2026. Until then, the current tax code applies to your returns.

How this affects your tax return right now

When you file your 2024 tax return, you use the tax brackets, standard deduction, and deduction rules that came from the 2017 law. Your employer's withholding and any estimated tax payments you make are also based on these rates.

If you are self-employed or have investment income, the rules about how that income is taxed also come from the 2017 law. Capital gains rates (the tax on profits from selling stocks or property) remain at 0%, 15%, or 20% depending on your income level — the same rates that took effect in 2018.

The only exception is if your state has passed its own tax changes. Some states have raised or lowered their own income tax rates or changed their own deductions independently of federal law.

What happens if Congress does nothing by the end of 2025

If Congress does not vote to extend the individual tax provisions before they expire, tax rates will increase and the standard deduction will decrease starting in 2026. This would affect your 2026 tax return and all returns filed after that.

This scenario is sometimes called a "tax cliff" because the changes would happen all at once rather than gradually. However, Congress has extended or modified expiring tax provisions many times in the past, so it is uncertain whether these provisions will actually expire or be extended.

Paying attention to tax news in late 2025 will tell you whether Congress has acted. If you are planning finances for 2026 and beyond, you may want to wait until closer to the end of 2025 to see what Congress decides.

Frequently Asked Questions

Did Biden change the Trump tax code?

No. President Biden did not repeal or replace the 2017 tax code. He signed the Inflation Reduction Act in 2022, which made some changes to tax credits and energy-related deductions, but the core tax rates and standard deduction from 2017 remain in place. Some proposed changes to tax rates for high earners have not become law.

Will my taxes go up in 2026?

Only if Congress does not extend the 2017 tax provisions before they expire at the end of 2025. If they expire, tax rates will increase and the standard deduction will decrease for 2026 and beyond. Congress has not yet voted on whether to extend them, so the outcome is uncertain.

Are the business tax cuts permanent?

Yes. The corporate tax rate of 21% and most business-related provisions in the 2017 law are permanent unless Congress passes a new law to change them. Individual tax provisions expire after 2025, but business provisions do not have an expiration date.

How do I know what tax rate applies to me?

The IRS publishes tax tables and brackets each year. For 2024, you can find your tax bracket based on your filing status and income on the IRS website or in the instructions that come with your tax forms. Your tax software will also calculate your rate automatically.