What changed in the tax code under Trump's 2024 policies
Tax law in 2024 depends on which policies Congress passed and which ones expired or remained in effect from earlier years. The Tax Cuts and Jobs Act of 2017 set most current tax rates and deductions, with many provisions scheduled to end after 2025 unless Congress extends them. In 2024, those rates were still in place — but what happens in 2025 and beyond depends on decisions Congress makes.
No single "Trump tax plan" took effect in 2024 as a new law. Instead, you are living under the tax code that resulted from 2017 legislation, plus any changes Congress made since then. The most visible parts of that code — the tax brackets, the standard deduction, the child tax credit — are the same in 2024 as they were in 2023, adjusted slightly for inflation each year.
If you are trying to understand whether your taxes went up or down, the answer depends on your income level, family size, and what deductions you use. The 2017 law lowered rates for most income brackets and nearly doubled the standard deduction, but it also eliminated or capped many itemized deductions. For some households, that was a net gain. For others, it was not.
Key Takeaways
- Tax rates and brackets in 2024 come from the 2017 Tax Cuts and Jobs Act, not from a new 2024 law.
- The standard deduction in 2024 is higher than it was before 2017, but many itemized deductions were reduced or eliminated.
- Many provisions of the 2017 law are set to expire after 2025 unless Congress votes to extend them.
- Your actual tax bill depends on your income, filing status, number of dependents, and which deductions apply to you.
- The IRS adjusts tax brackets and deduction amounts each year for inflation, so your numbers may differ from last year even if the law did not change.
Tax brackets and rates that applied in 2024
In 2024, there were seven federal income tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These brackets apply to different ranges of income depending on whether you file as single, married filing jointly, head of household, or married filing separately. The income ranges for each bracket shift upward each year to account for inflation.
For example, in 2024, a single filer paid 12% on income between roughly $11,600 and $47,150, and 22% on income between roughly $47,150 and $100,525. A married couple filing jointly paid 12% on income between roughly $23,200 and $94,300. These numbers are different from 2023 because the IRS adjusts them annually — not because the law changed.
The 2017 law lowered the top rate from 39.6% to 37% and compressed the number of brackets. For most middle-income households, the rates in 2024 are lower than they were before 2017. However, the benefit phases out for higher earners, and the law also introduced new taxes on investment income and pass-through business income for high earners.
Standard deduction and itemized deductions in 2024
The standard deduction — the amount you can deduct without itemizing — nearly doubled under the 2017 law. In 2024, the standard deduction was $14,600 for single filers, $29,200 for married couples filing jointly, and $21,900 for heads of household. These amounts are higher than they were in 2016, which means more households can deduct the standard amount rather than itemizing.
However, the 2017 law also capped or eliminated many itemized deductions. The deduction for state and local taxes (SALT) is now limited to $10,000 per year, down from no limit before. The deduction for mortgage interest was capped at interest on $750,000 of debt, down from $1 million. Personal exemptions — a flat deduction per person — were eliminated entirely.
For households that do not own a home or pay high state taxes, the higher standard deduction is usually a benefit. For high-income households in high-tax states, the SALT cap and other limits mean they may pay more tax than they would have under the old law, even with lower rates.
Child tax credit and dependent deductions
The child tax credit increased from $1,000 per child to $2,000 per child under the 2017 law, and that amount remained in place in 2024. You can claim the credit for each child under age 17 at the end of the tax year. The credit is refundable, meaning you can receive money back even if you owe no tax — though the refundable portion is limited to $1,600 per child in 2024.
The credit begins to phase out for high earners: $50 for each $1,000 (or fraction thereof) of income above $400,000 for married couples filing jointly, or $200,000 for single filers. The phase-out threshold is not adjusted for inflation, so more households hit it each year as incomes rise.
The credit for other dependents — such as adult children, parents, or siblings you support — remained at $500 in 2024. This is lower than the child credit and is not refundable.
What expires after 2025 and what stays permanent
Most of the individual income tax provisions in the 2017 law are set to expire on December 31, 2025. This includes the lower tax rates, the higher standard deduction, and the expanded child tax credit. After 2025, unless Congress votes to extend them, tax rates will revert to the pre-2017 levels, the standard deduction will drop, and the child credit will fall back to $1,000 per child.
Some provisions are permanent. The SALT cap of $10,000 is permanent. The elimination of personal exemptions is permanent. The changes to business taxation are permanent. But the parts that affect most households — the rates and deductions — expire unless Congress acts.
Congress has not yet voted on whether to extend these provisions past 2025. That decision will likely happen in late 2024 or early 2025, and it will depend on which party controls Congress and the presidency at that time.
How inflation adjustments affect your 2024 taxes
Each year, the IRS adjusts tax brackets, the standard deduction, and various income thresholds to account for inflation. In 2024, these adjustments were roughly 3.4% higher than in 2023, reflecting inflation from the previous year. This means your tax bracket ranges shifted upward, and the standard deduction increased.
These adjustments happen automatically and are not a change in tax law — they are a mechanical adjustment to keep the tax code from pushing people into higher brackets simply because their income kept pace with inflation. However, they do mean that your tax situation can change from year to year even if Congress passes no new laws.
State and local taxes under the $10,000 SALT cap
The 2017 law capped the deduction for state and local taxes (SALT) at $10,000 per year. This includes state income tax, local income tax, and property tax combined — you cannot deduct more than $10,000 total, regardless of how much you actually paid. This cap is permanent and applies in 2024 and beyond.
For households in high-tax states like California, New York, and New Jersey, this cap can mean a significant increase in federal tax liability. A household paying $20,000 in state and local taxes can now deduct only $10,000, meaning $10,000 of income is taxed at the federal level that would not have been before 2017.
Some states have tried to work around the cap by allowing residents to make charitable contributions to state-run funds in exchange for state tax credits, effectively converting a tax payment into a charitable deduction. The IRS has challenged this approach, so the legality remains uncertain.
Frequently Asked Questions
Did my taxes go up or down in 2024 compared to before 2017?
That depends on your income, family size, and deductions. Most middle-income households saw a tax cut because rates fell and the standard deduction nearly doubled. High-income households in high-tax states often saw a tax increase because the SALT cap and other limits offset the lower rates. The only way to know for certain is to compare your 2024 tax return to your 2016 return.
Will my taxes change in 2026 if Congress does nothing?
Yes. Most individual income tax provisions expire after 2025. If Congress does not extend them, tax rates will rise, the standard deduction will drop, and the child tax credit will fall to $1,000 per child. This is sometimes called the "tax cliff." Congress will likely vote on an extension in late 2024 or early 2025.
Can I deduct more than $10,000 in state and local taxes?
No. The $10,000 SALT cap is permanent. You can deduct state income tax, local income tax, and property tax combined, but the total cannot exceed $10,000 per year. If you pay more than that, the excess is not deductible.
How much is the child tax credit in 2024?
The child tax credit is $2,000 per child under age 17. Up to $1,600 of that is refundable, meaning you can receive it as a refund even if you owe no tax. The credit phases out for high earners starting at $400,000 of income for married couples filing jointly.
Do I have to itemize deductions or can I take the standard deduction?
You choose whichever is larger. Most households take the standard deduction because it is now so high. You should itemize only if your total itemized deductions — mortgage interest, SALT, charitable contributions, and a few others — exceed the standard deduction for your filing status.