The tax code in effect today is a mix of rules from different years
The Tax Cuts and Jobs Act of 2017 — often called "Trump's tax plan" — is still the law. Most of its provisions remain in place. However, some parts have changed, and others are set to expire on December 31, 2025, unless Congress acts to extend them. This means the tax rules you follow today are not identical to what they were in 2017, and they may change again soon.
The confusion arises because tax law is layered. The 2017 law created a framework, but Congress has modified pieces of it since then, and the IRS has issued guidance that affects how those rules work in practice. Additionally, some provisions in the 2017 law were written with expiration dates built in — a budget tactic that lets Congress pass large tax changes without formally voting to extend them later.
Understanding which rules apply to you now requires knowing what changed after 2017, what is scheduled to expire, and what your specific situation is. The following sections break this down by the parts of the tax code that matter most to households.
Key Takeaways
- The 2017 Tax Cuts and Jobs Act is still law, but many of its provisions expire on December 31, 2025, unless Congress extends them.
- Individual income tax rates, the standard deduction, and child tax credits are all set to revert to 2017 levels or earlier if Congress does not act before the end of 2025.
- Corporate tax rates and business deductions from the 2017 law remain permanent and will not expire.
- Congress has already modified some 2017 provisions — for example, the child tax credit was expanded in 2021 and then partially rolled back in 2022.
- Your actual tax bill depends on which rules apply to your income type and filing status, not on the name of the law.
Individual income tax rates and brackets through 2025
The 2017 law lowered individual income tax rates and widened the income brackets — meaning more of your income falls into lower tax brackets than it did before. These rates are in effect now and will remain so through December 31, 2025. Starting January 1, 2026, unless Congress extends them, the rates revert to the 2001 levels (adjusted for inflation).
For example, in 2024, the top federal income tax rate is 37 percent, and it applies to income above roughly $578,000 for single filers. Under the pre-2017 law, the top rate would be 39.6 percent. The difference between 37 percent and 39.6 percent on high income is substantial, but the rate change also affects middle-income brackets. If Congress does not act, all brackets shift upward in 2026.
This expiration date is the reason you hear debate about the 2017 law "expiring." The rates themselves do not disappear — they revert to an older version of the tax code. Whether that happens depends entirely on whether Congress votes to extend the 2017 rates before the end of 2025.
Standard deduction and child tax credit changes
The 2017 law roughly doubled the standard deduction. In 2024, the standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly. These amounts are higher than they would be under pre-2017 law, and they adjust upward each year for inflation. Like the income tax rates, the standard deduction is set to revert to pre-2017 levels (adjusted for inflation) on January 1, 2026, unless Congress extends it.
The child tax credit was also changed by the 2017 law — it increased from $1,000 per child to $2,000 per child. However, this provision has already been modified since 2017. In 2021, the credit was temporarily expanded to $3,600 per child under age 6 and $3,000 per child ages 6 to 17, and it was made partially refundable. In 2022, that expansion ended, and the credit returned to $2,000 per child. The $2,000 amount is set to expire on December 31, 2025, reverting to $1,000 per child unless Congress acts.
These changes matter because they directly reduce the tax you owe. A higher standard deduction means fewer people owe federal income tax at all. A higher child tax credit means more money back if you have children.
Business deductions and corporate tax rates
The 2017 law lowered the corporate income tax rate from 35 percent to 21 percent, and this change is permanent — it does not expire. The law also created new deductions for pass-through businesses (sole proprietorships, partnerships, and S-corporations), allowing owners to deduct up to 20 percent of may have access to business income. This deduction is set to expire on December 31, 2025.
If you own a business or are self-employed, the pass-through deduction may reduce your personal income tax bill significantly. However, it is not available to everyone — there are income limits and restrictions based on the type of business you operate. After 2025, if Congress does not extend it, this deduction goes away, but the 21 percent corporate rate remains.
What Congress has already changed since 2017
The 2017 law was not frozen in place. Congress has modified it several times. The most significant change came in 2021, when the child tax credit was expanded as part of pandemic relief legislation. That expansion was temporary and ended in 2022. Other changes have been smaller — adjustments to retirement account rules, modifications to the deduction for state and local taxes (which was capped at $10,000 under the 2017 law and remains capped), and updates to how certain business losses are treated.
These modifications show that the tax code is not static. Even if the 2017 law's main provisions expire, Congress could replace them with something different rather than reverting to pre-2017 law. The outcome depends on political decisions made in late 2025.
What happens on January 1, 2026, if Congress does not act
If Congress does not extend the expiring provisions before the end of 2025, several things change automatically. Individual income tax rates increase, the standard deduction shrinks, the child tax credit drops from $2,000 to $1,000 per child, and the pass-through business deduction disappears. These changes would affect most households that pay federal income tax.
The corporate tax rate of 21 percent remains in place because it was made permanent. State and local tax deductions remain capped at $10,000. Retirement account contribution limits and other technical provisions continue as they are.
Congress could extend some provisions and let others expire, or extend all of them. The decision will be made in 2025, likely in the final weeks of the year when budget legislation is typically passed.
How to find out what tax rules apply to your specific situation
Your actual tax bill depends on your income, filing status, number of dependents, type of income (wages, self-employment, investment income), and state of residence. The IRS publishes tax tables and worksheets each year that reflect the current law. The most reliable source is the IRS website (irs.gov), which has current tax rates, standard deduction amounts, and credit limits for the year you are filing.
If you use tax software or work with a tax preparer, they will use the rules in effect for the year you are filing. You do not have to track the law yourself — the software or preparer does that. However, understanding that the 2017 law is set to expire helps you understand why your tax bill might change significantly in 2026 if Congress does not act.
Frequently Asked Questions
Will my taxes go up in 2026?
Only if Congress does not extend the expiring provisions of the 2017 law. If the rates, standard deduction, and child tax credit revert to pre-2017 levels, most households will owe more federal income tax. However, Congress may extend some or all of these provisions, or replace them with different rules. The outcome is not certain until Congress votes.
Does the 2017 tax law still apply to my business?
The 21 percent corporate tax rate is permanent and still applies. The pass-through business deduction (up to 20 percent of may have access to business income) is still available but expires on December 31, 2025. If you own a business, consult a tax preparer or accountant to understand how these rules affect your specific situation.
What is the standard deduction for 2024?
For 2024, the standard deduction is $14,600 for single filers, $29,200 for married couples filing jointly, and $21,900 for heads of household. These amounts increase each year for inflation. The IRS publishes updated amounts each January on irs.gov.
Can I still claim the child tax credit?
Yes. For 2024, the child tax credit is $2,000 per child under age 17. This credit is set to drop to $1,000 per child on January 1, 2026, unless Congress extends it. The credit is partially refundable, meaning you may receive a payment even if you owe no tax.
Where can I find the current tax rates and rules?
The IRS website (irs.gov) publishes current tax rates, standard deduction amounts, and credit limits each year. You can also find this information in IRS Publication 17 (Your Federal Income Tax) and Publication 505 (Tax Withholding and Estimated Tax). Tax software and tax preparers also have current information built in.