The Tax Cuts and Jobs Act is still in effect, but parts of it expire at the end of 2025

The major tax law passed in 2017 under President Trump — formally called the Tax Cuts and Jobs Act — remains the law right now. Most of its provisions are still active in 2024. However, many of the individual income tax cuts in that law are set to expire on December 31, 2025, unless Congress votes to extend them before that date.

This means your tax brackets, standard deduction, and child tax credit may change starting in 2026 if no action is taken. The corporate tax rate, by contrast, is permanent and will not change automatically.

What you pay in taxes this year depends on which provisions affect you — and whether you fall under the parts that expire or the parts that stay. Below is what actually changes and what stays the same.

Key Takeaways

  • Individual income tax cuts from 2017 expire December 31, 2025, unless Congress extends them before that date.
  • The corporate tax rate of 21 percent is permanent and will not expire.
  • Your 2024 tax brackets, standard deduction, and child tax credit are lower than they would be under pre-2017 law, but this may reverse in 2026.
  • State and local tax deductions remain capped at $10,000 per year, a change from 2017 that is set to expire in 2026.

What expires at the end of 2025

The individual income tax rates themselves will revert to their pre-2017 levels. This means tax brackets will widen less, and you may owe more tax on the same income. The standard deduction — the amount you can deduct without itemizing — will drop significantly. For 2024, the standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly. After 2025, these amounts will be lower unless Congress acts.

The child tax credit will also shrink. Right now it is $2,000 per child under 17. Starting in 2026, it reverts to $1,000 per child unless extended. The credit will also become less refundable, meaning fewer families will receive the full amount if they owe little or no income tax.

Several other deductions and credits tied to the 2017 law also expire: the deduction for pass-through business income, enhanced education credits, and expanded dependent exemptions all sunset on December 31, 2025.

What stays the same no matter what

The corporate income tax rate of 21 percent is permanent. It will not expire and will not change unless Congress passes a new law specifically to change it. This applies to C corporations — the standard business structure for larger companies.

The alternative minimum tax (AMT) remains in place. The 2017 law raised the AMT exemption, but that exemption is also set to expire in 2026. After that, more high-income individuals may owe AMT.

The state and local tax (SALT) deduction cap of $10,000 per year is set to expire in 2026. This cap limits how much you can deduct for state income taxes, property taxes, and sales taxes combined. Before 2017, there was no cap. After 2025, the cap expires unless Congress extends it.

What Congress might do before the expiration date

Congress could vote to extend the expiring provisions before December 31, 2025. This is not certain — it requires a vote and the agreement of both chambers. However, extending tax cuts is a common action in Congress, and lawmakers from both parties have discussed extending at least some of these provisions.

Congress could also choose to let them expire, which would raise taxes on many households. Or it could extend some provisions and let others expire. The outcome depends on the political composition of Congress and the priorities of the administration in office at that time.

No action has been taken yet to extend or modify these provisions. Monitoring news from Congress in late 2025 will tell you whether an extension is likely.

How to find out what your taxes will be in 2026

Your tax situation in 2026 depends on whether Congress extends the 2017 law. If you want to plan ahead, you can calculate your taxes under both scenarios: one where the law extends, and one where it expires. The IRS website publishes tax tables and standard deduction amounts each year, usually in October or November for the following year.

A tax professional or tax software can also model both scenarios for you. This is especially useful if you have a complex return — multiple income sources, business income, or significant deductions. Many tax preparers offer this kind of planning conversation at no extra charge during tax season.

If you itemize deductions rather than taking the standard deduction, the expiration of the SALT cap will affect you most directly. Tracking your state and local taxes now will help you understand how much your deduction might change.

State taxes are separate from federal taxes

Federal tax law changes do not automatically change your state income tax. Each state sets its own tax rates and rules. Some states have already made their own changes in response to federal tax law, while others have not.

If you live in a state with income tax, check your state tax agency's website to see whether state tax law will change in 2026. A few states have tied their tax code directly to federal law, so they will change automatically if federal law changes. Most states have not, so you need to check separately.

States with no income tax — including Texas, Florida, Wyoming, and others — are not affected by federal income tax changes.

Frequently Asked Questions

Will my taxes go up in 2026?

Only if Congress does not extend the 2017 tax law. If it expires, most households will owe more tax on the same income because tax brackets widen less and the standard deduction drops. However, Congress may extend the law before the deadline. The outcome is not yet decided.

Does the corporate tax rate expire too?

No. The corporate tax rate of 21 percent is permanent. It will not change unless Congress passes a new law to change it. Only the individual income tax provisions are set to expire at the end of 2025.

What happens to the child tax credit after 2025?

If the 2017 law expires, the child tax credit drops from $2,000 to $1,000 per child, and fewer families will receive the full credit if they owe little tax. Congress could extend the higher credit, but no action has been taken yet.

Can I deduct more than $10,000 in state and local taxes after 2025?

Only if Congress extends the current cap. Right now you can deduct a maximum of $10,000 in state income taxes, property taxes, and sales taxes combined. After 2025, that cap expires unless extended, which would allow higher deductions again.

Should I change my tax withholding now?

Not yet. Your 2024 withholding is based on current law. If Congress extends the 2017 law, nothing changes. If it expires, your withholding may need to adjust in 2026. Wait until closer to the end of 2025 to see what Congress does, then adjust if needed.