Tax policies from the Trump administration remain in place, but many are set to expire or have already changed
The Tax Cuts and Jobs Act of 2017, passed under the Trump administration, made major changes to federal income tax rates, deductions, and business taxes. Most of those changes are still the law today, though some have expired and others are scheduled to end. The key thing to understand is that tax law changes when Congress passes new legislation — not when a new president takes office. A president can propose changes, but only Congress can make them law.
The biggest Trump-era tax cuts — the lower individual income tax rates and the increased standard deduction — are currently set to expire on December 31, 2025, unless Congress votes to extend them. That means your tax situation could change significantly starting in 2026. Other parts of the 2017 law, like changes to business taxes and the corporate tax rate, have different expiration dates or no expiration date at all.
This guide explains which Trump-era tax policies are still active, which have already ended, and which are scheduled to expire soon. It does not predict what Congress will do, because that is not yet decided.
Key Takeaways
- Individual income tax rates from the 2017 Tax Cuts and Jobs Act are still in effect but expire December 31, 2025, unless Congress extends them.
- The standard deduction is higher now than it was before 2017, and that increase also expires at the end of 2025.
- The corporate tax rate was permanently lowered from 35 percent to 21 percent under the 2017 law and remains at that rate.
- The child tax credit was increased from $1,000 to $2,000 per child in 2017, but that expansion expires at the end of 2025.
- Some Trump-era tax breaks for businesses, like the pass-through deduction, expire at the end of 2025 unless Congress votes to extend them.
Individual income tax rates and brackets that are still active
The 2017 Tax Cuts and Jobs Act created seven federal income tax brackets with lower rates than the previous law. Those rates are still in effect for the 2024 and 2025 tax years. The brackets are 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. These rates apply to your ordinary income — wages, salary, interest, and most other sources.
These rates are lower than they were before 2017. For example, the top rate was 39.6 percent before the 2017 law; it is now 37 percent. The lowest rate was 10 percent before and remains 10 percent. The brackets themselves — the income ranges where each rate applies — also change every year to account for inflation, so the exact dollar amounts shift annually.
Unless Congress acts, these rates will revert to the pre-2017 rates on January 1, 2026. That means your tax bill could go up significantly if you are in a higher bracket. Congress has not yet voted on whether to extend these rates, so the outcome remains uncertain.
The standard deduction is higher now but expires in 2026
The standard deduction — the amount you can subtract from your income before calculating tax — roughly doubled under the 2017 law. For the 2024 tax year, the standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly. These amounts are higher than they were in 2016, when they were $6,300 and $12,600.
The standard deduction increases slightly each year to keep pace with inflation, so the 2025 amounts will be slightly higher than 2024. However, the increase itself — the roughly doubling that happened in 2017 — is set to expire at the end of 2025. If Congress does not extend it, the standard deduction will drop significantly starting in 2026.
A higher standard deduction means fewer people need to itemize deductions, and those who do itemize can deduct less. This change affected millions of taxpayers, particularly those in middle-income brackets.
Child tax credit expansion that ends in 2026
The 2017 law increased the child tax credit from $1,000 per child to $2,000 per child. That $2,000 credit is still in effect for 2024 and 2025. You can claim it for each child under age 17 at the end of the tax year, and the credit reduces your tax bill dollar-for-dollar.
The credit is partially refundable, meaning you can receive some of it as a refund even if you owe no tax. The refundable portion is capped at $1,600 per child for 2024, though this amount adjusts annually for inflation. The non-refundable portion — the part that can only reduce your tax bill to zero — is $400 per child.
Like the income tax rates and standard deduction, the $2,000 child tax credit is scheduled to expire on December 31, 2025. Starting in 2026, the credit would revert to $1,000 per child unless Congress votes to extend the higher amount.
Business tax changes that are permanent or have different expiration dates
The 2017 law made several changes to business taxation. The corporate tax rate was permanently lowered from 35 percent to 21 percent. This change has no expiration date, so it remains the law unless Congress votes to change it again. This is one of the most significant and longest-lasting changes from the 2017 law.
The law also created the may have access to business income deduction, often called the pass-through deduction. This allows owners of sole proprietorships, partnerships, S-corporations, and other pass-through entities to deduct up to 20 percent of their business income. This deduction is available to 2024 and 2025 tax years but expires at the end of 2025.
Depreciation rules for business property were also changed in 2017, allowing businesses to deduct the full cost of certain assets in the year they are purchased, rather than spreading the deduction over several years. This provision, called bonus depreciation, is also scheduled to phase out after 2025, though the phase-out happens gradually over several years.
Tax provisions that have already expired
Some provisions of the 2017 law had shorter expiration dates and have already ended. The deduction for pass-through business income was originally set to expire after 2017, but Congress extended it multiple times. It is now scheduled to expire at the end of 2025.
Certain energy-related tax credits and deductions have been modified or expired since 2017, though some have been reinstated or expanded under other legislation passed after 2017. The rules around these credits are complex and have changed multiple times, so if you claim energy credits, you should check current IRS guidance or speak with a tax professional.
The state and local tax deduction cap — which limits how much you can deduct for state and local income, sales, and property taxes — was introduced in the 2017 law at $10,000 per year. This cap is still in effect and is scheduled to expire at the end of 2025.
What happens if Congress does not extend these provisions
If Congress does not act before the end of 2025, the tax code will change automatically on January 1, 2026. Income tax rates will rise, the standard deduction will drop, and the child tax credit will decrease. These changes would affect most taxpayers, though the impact would be largest for middle and upper-income households.
Congress has extended similar provisions before. In 2012, Congress extended the 2001 and 2003 tax cuts, which were also scheduled to expire. However, Congress did not act until after the expiration date had passed, creating uncertainty for taxpayers and businesses. There is no may provide that Congress will extend the 2017 provisions before they expire.
Tax planning for 2026 is difficult right now because the outcome depends on Congressional action that has not yet happened. Many tax professionals recommend waiting to see what Congress does before making major financial decisions based on tax rates.
Frequently Asked Questions
Will my taxes go up in 2026 if Congress does nothing?
Yes, for most taxpayers. Your tax rates would increase, your standard deduction would drop, and credits like the child tax credit would decrease. The exact impact depends on your income and family situation. A tax professional can estimate what your 2026 tax bill might look like under current law.
Can the president extend these tax provisions without Congress?
No. Only Congress can change tax law. The president can propose changes and sign legislation that Congress passes, but cannot extend tax provisions on his own authority. This is why the outcome depends on what Congress votes to do, not on who is president.
Are there any Trump-era tax changes that are permanent?
Yes. The corporate tax rate reduction from 35 percent to 21 percent has no expiration date and is permanent unless Congress votes to change it. Some other business provisions, like changes to depreciation rules, also have no expiration date or expire much later than 2025.
Where can I find the current tax rates and standard deduction amounts?
The IRS publishes current tax brackets and standard deduction amounts on its website each year. The amounts for 2024 and 2025 are available now. Your tax software or a tax professional can also tell you the current amounts that apply to your situation.
Do state taxes follow the same rules as federal taxes?
No. State tax laws are separate from federal tax law. Some states made their own changes in response to the 2017 federal law, but most state tax rates and rules remain unchanged. You need to check your state's tax rules separately, as they do not automatically follow federal changes.