Trump did not end federal income tax

Federal income tax remains in place and is still collected by the Internal Revenue Service. No president has the power to eliminate income tax on their own — that would require an act of Congress. During his presidency (2017–2021), Donald Trump signed the Tax Cuts and Jobs Act of 2017, which lowered tax rates for most income brackets and changed how some deductions worked, but it did not remove income tax itself.

The 2017 law made temporary changes to individual tax rates that were set to expire at the end of 2025 unless Congress extends them. Corporate tax rates were made permanent at a lower level. These were reductions in how much tax people owed, not the elimination of the tax system.

Key Takeaways

  • Federal income tax still exists and the IRS still collects it; no president can end it without Congress passing a new law.
  • The Tax Cuts and Jobs Act of 2017 lowered tax rates for individuals and corporations but did not eliminate income tax.
  • Individual tax rate cuts from 2017 are scheduled to expire on December 31, 2025, unless Congress votes to extend them.
  • Corporate tax rates were permanently lowered to 21 percent under the 2017 law, while individual rates remain temporary.

What the 2017 Tax Cuts and Jobs Act actually changed

The Tax Cuts and Jobs Act reduced federal income tax rates across most brackets. For example, the top individual rate dropped from 39.6 percent to 37 percent. The law also doubled the standard deduction, which meant fewer people had to itemize deductions to reduce their taxable income.

The law eliminated or reduced several deductions that had been available before, including the personal exemption and limits on state and local tax deductions. It also changed how child tax credits and dependent credits worked. These changes affected different households in different ways — some paid less tax, while others paid more depending on their income level and what deductions they had used.

Why individual tax cuts expire but corporate cuts do not

Congress used a budget rule called reconciliation to pass the 2017 tax law. This rule allowed the bill to pass with a simple majority in the Senate rather than requiring 60 votes. However, reconciliation rules require that tax cuts for individuals must expire after 10 years if they add to the deficit. Corporate tax cuts were written to be permanent because they were structured differently under the budget rules.

This means the individual income tax rates that were lowered in 2017 are set to return to their previous levels on January 1, 2026, unless Congress passes a new law to extend them. The corporate rate of 21 percent will remain in place unless Congress changes it through a separate vote.

What happens to your taxes when the 2017 cuts expire

If Congress does not act before the end of 2025, individual tax rates will increase back toward their pre-2017 levels starting in 2026. The standard deduction will also decrease. This would mean most people would owe more in federal income tax unless they had changes in their income or life circumstances that offset the rate increase.

Congress may vote to extend the cuts, modify them, or let them expire. This decision has not yet been made and will depend on which party controls Congress and the presidency at that time. Taxpayers should monitor news about tax legislation in late 2025 to understand what will happen to their specific situation.

How to find out what your current tax rate is

Your federal income tax rate depends on your filing status (single, married filing jointly, head of household, or married filing separately) and your total income for the year. The IRS publishes tax rate tables each year that show the brackets and rates that apply. You can find these on the IRS website at irs.gov.

If you file taxes yourself, tax software will calculate your rate based on the information you enter. If you work with a tax preparer or accountant, they can explain what rate applies to your income and what changes might happen in future years. The rate you pay is not the same as the percentage of your income you actually owe — your effective tax rate is usually lower because of deductions and credits.

Frequently Asked Questions

Can a president end income tax without Congress?

No. The power to create or eliminate federal taxes belongs to Congress, not the president. A president can sign tax bills that Congress passes, but cannot change the tax code on their own. Ending income tax would require a constitutional amendment or a new law passed by both the House and Senate.

Did Trump's tax cuts help everyone?

The 2017 tax cuts reduced rates for most people, but the benefit varied widely. Some households saw significant tax decreases, while others saw smaller decreases or even increases depending on their income level and which deductions they used. High-income households generally saw larger dollar reductions, though rates dropped across all brackets.

What year do the Trump tax cuts expire?

Individual income tax rate cuts expire on December 31, 2025, unless Congress votes to extend them before that date. Corporate tax cuts are permanent. After 2025, individual rates will return to pre-2017 levels unless new legislation prevents that change.

Will my taxes go up in 2026?

If Congress does not extend the 2017 tax cuts, most people will owe more in federal income tax starting in 2026 because rates will increase and the standard deduction will decrease. However, Congress may vote to extend the cuts or modify them. You should wait for Congress to act in late 2025 before making financial plans based on tax rate changes.