The tax code in effect for 2024 comes from the Tax Cuts and Jobs Act of 2017

Yes, the major tax rules from the Trump administration remain in place for 2024. The Tax Cuts and Jobs Act, passed in December 2017, lowered tax rates, increased the standard deduction, and changed how deductions work. Most of those changes are still the law this year. Congress has not repealed them, and no new tax law has replaced them.

The key point: the tax brackets, standard deduction amounts, and child tax credit rules you use to file your 2024 return are based on that 2017 law. Some provisions were set to expire after 2025, but they have not expired yet. Your tax bill for 2024 is calculated under rules that have been in place for seven years.

Key Takeaways

  • The 2017 Tax Cuts and Jobs Act lowered income tax rates and nearly doubled the standard deduction, and those changes remain in effect for 2024.
  • The law included a temporary increase in the child tax credit to $2,000 per child, which is still available when you file your 2024 return.
  • Many provisions of the 2017 law are scheduled to expire after December 31, 2025, unless Congress extends them before that date.
  • State and local tax deductions are capped at $10,000 per year under the current law, a change from the 2017 act that remains in place.
  • The corporate tax rate was permanently lowered to 21 percent in 2017 and has not changed since.

Which tax rates and deductions are still from the 2017 law

The income tax brackets for 2024 follow the structure set in 2017. The rates themselves—10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent—have not changed. The income ranges that fall into each bracket are adjusted each year for inflation, but the rate structure is the same.

The standard deduction for 2024 is $14,600 for single filers and $29,200 for married couples filing jointly. This is higher than it was before 2017, when the standard deduction was $6,350 for single filers and $12,700 for married couples. The 2017 law nearly doubled it. That deduction is adjusted for inflation each year, but the increase itself came from that law and remains in place.

The child tax credit is $2,000 per child under age 17. That amount was increased from $1,000 in the 2017 law. You can also claim a $500 credit for other dependents. These amounts have not changed since 2017.

What is scheduled to expire after 2025

Many provisions of the 2017 law were written to expire on December 31, 2025. This includes the individual income tax rate cuts, the increased standard deduction, and the expanded child tax credit. After that date, unless Congress passes new legislation, those provisions will revert to what they were before 2017.

Congress could extend these provisions, modify them, or let them expire. That decision has not been made yet. For tax year 2024, you use the current rates and deductions. What happens in 2026 depends on what Congress does in 2025.

The corporate tax rate of 21 percent, by contrast, was made permanent in the 2017 law. It will not expire.

How the state and local tax deduction cap works

The 2017 law capped the state and local tax (SALT) deduction at $10,000 per year. This means you can deduct up to $10,000 in state income taxes, property taxes, and sales taxes combined. Before 2017, there was no cap.

This cap applies to your 2024 return and is also scheduled to expire after 2025. If you live in a state with high income or property taxes, this cap may reduce the deduction you can claim. Some states have tried to work around this cap by creating workarounds, but the federal limit remains $10,000.

What changed for business owners and corporations

The corporate tax rate was lowered from 35 percent to 21 percent in 2017 and remains 21 percent for 2024. This change was permanent, not temporary.

For small business owners who file as sole proprietors or pass-through entities (like S-corporations or LLCs), the 2017 law created the may have access to business income (QBI) deduction. This allows you to deduct up to 20 percent of your business income on your personal tax return, subject to certain limits. This deduction is also scheduled to expire after 2025.

How inflation adjustments work each year

The IRS adjusts tax brackets, the standard deduction, and other dollar amounts each year based on inflation. This means the income ranges for each tax bracket change, but the rates themselves do not. For example, the 22 percent bracket might cover $11,001 to $44,725 in one year and $11,500 to $46,000 in the next year, but it is still 22 percent.

These adjustments happen automatically. You do not have to do anything. The IRS publishes the new amounts each October or November for the following tax year.

What happens if Congress does not act before 2026

If Congress does not extend the expiring provisions before the end of 2025, the tax code will change on January 1, 2026. Income tax rates would increase, the standard deduction would decrease, and the child tax credit would drop back to $1,000 per child. The SALT cap and QBI deduction would also expire.

This is sometimes called a "tax cliff." Congress has extended similar provisions in the past, but there is no may provide it will do so again. The decision will be made by Congress in 2025, and you will know the outcome well before you file your 2026 return.

Frequently Asked Questions

Did Biden change the Trump tax cuts?

No. The 2017 Tax Cuts and Jobs Act remains in effect for 2024. President Biden did not repeal it. Congress could change the law, but it has not done so. Some provisions are scheduled to expire after 2025 unless Congress extends them.

Will my taxes go up in 2025?

Not because of the 2017 law expiring. The current tax rates and deductions apply through 2025. If Congress does not act, changes would take effect on January 1, 2026. Your 2025 taxes will be calculated under the same rules as 2024.

Is the child tax credit still $2,000?

Yes, for 2024 and 2025. The child tax credit is $2,000 per child under age 17. This amount was increased from $1,000 in the 2017 law. It is scheduled to drop back to $1,000 after 2025 unless Congress extends it.

Can I still claim the standard deduction?

Yes. The standard deduction for 2024 is $14,600 for single filers and $29,200 for married couples filing jointly. You can claim this instead of itemizing deductions. The amount is adjusted for inflation each year.

What is the corporate tax rate in 2024?

The corporate tax rate is 21 percent. This was lowered from 35 percent in the 2017 law and is permanent. It will not expire after 2025.