The 2017 tax cuts expire on December 31, 2025, unless Congress votes to extend them before that date

Most of the tax cuts passed in the Tax Cuts and Jobs Act of 2017 are set to end on December 31, 2025. This means tax rates will return to what they were before 2017, and several deductions and credits will change or disappear. The expiration date was built into the law when it passed — Congress set it this way to make the bill cheaper to pass.

What actually happens on January 1, 2026, depends on whether Congress acts before the deadline. If no new law passes, the changes happen automatically. If Congress votes to extend the cuts, they could stay in place for years longer. Right now, no one knows which will happen.

Key Takeaways

  • Individual income tax rates and the standard deduction are scheduled to revert to 2016 levels on January 1, 2026, unless Congress extends the cuts.
  • The child tax credit, earned income tax credit, and other credits will change or shrink when the law expires.
  • Corporate tax rates do not expire — they stay at 21 percent permanently, even if individual cuts end.
  • Congress will likely debate extension or replacement of these cuts sometime in 2025, but the outcome is uncertain.

Which tax provisions expire and which stay permanent

The 2017 law split its changes into two groups: temporary and permanent. The temporary ones all end on December 31, 2025. These include changes to individual income tax rates, the standard deduction, the child tax credit, the earned income tax credit, and the deduction for pass-through business income.

The permanent changes stay in place no matter what. The corporate income tax rate drops from 35 percent to 21 percent forever — that does not expire. The deduction for foreign earnings also stays. But for most households, the temporary provisions are what matter most to their tax bill.

What happens to tax rates on January 1, 2026

If Congress does not act, tax brackets and rates revert to the 2016 structure, adjusted for inflation. The seven tax brackets return, and the rates in each bracket go back to what they were. For most people, this means a higher tax bill on the same income.

The standard deduction also shrinks. In 2025, the standard deduction is roughly $14,600 for single filers and $29,200 for married couples filing jointly. On January 1, 2026, those amounts would drop significantly unless Congress extends the current law. The exact 2026 amounts depend on inflation adjustments that have not yet been calculated.

Changes to credits and deductions that expire

The child tax credit is currently $2,000 per child under age 17. When the law expires, it drops to $1,000 per child. The credit also becomes less refundable, meaning fewer families get money back if the credit exceeds what they owe.

The earned income tax credit (EITC) also shrinks. The maximum credit amounts and income thresholds both change. The deduction for pass-through business income — which lets owners of sole proprietorships, partnerships, and S-corporations deduct up to 20 percent of their business income — disappears entirely.

Several other provisions expire as well: the increased deduction for state and local taxes (SALT), the expanded deduction for charitable contributions, and changes to education-related credits. Each one reverts to its pre-2017 form or disappears.

What Congress might do before the deadline

Congress has three main options: extend the cuts as they are, modify them and extend modified versions, or let them expire and pass new tax law. Historically, Congress has extended temporary tax provisions multiple times rather than let them expire, but there is no may provide this will happen.

The debate will likely center on cost — extending the cuts costs the federal government money in lost tax revenue. Congress will have to decide whether to offset that cost by cutting spending, raising other taxes, or accepting a larger deficit. The outcome depends on which party controls Congress and the presidency at the time of the vote.

How to plan for the expiration

If you rely on the child tax credit, the EITC, or the pass-through deduction for your tax planning, you should not assume these will stay in place after 2025. Consider what your tax bill would look like under 2016 tax law, and plan accordingly.

If you are self-employed or own a business, the loss of the pass-through deduction could significantly increase your tax liability. A tax professional can help you model what your 2026 taxes might look like under different scenarios — extension, modification, or expiration.

You do not need to take action now. But as 2025 progresses and Congress begins debating what to do, paying attention to the news will help you understand what changes might affect your household.

Frequently Asked Questions

Will Congress definitely extend the tax cuts?

No one knows yet. Congress has extended temporary tax provisions in the past, but it is not may provide. The decision depends on which party controls Congress, the president's position, and broader budget debates. The debate will likely happen in 2025.

Do the corporate tax cuts expire too?

No. The corporate income tax rate of 21 percent is permanent. Only the individual income tax provisions, credits, and deductions expire on December 31, 2025.

What if I have a child born in 2026 — do I get the $2,000 credit or the $1,000 credit?

That depends on whether Congress extends the law before January 1, 2026. If the cuts expire as scheduled, the credit would be $1,000 for a child born in 2026. If Congress extends them, it would be $2,000. You will know the answer by late 2025.

Should I try to accelerate income or deductions before 2026?

That depends on your specific situation and tax bracket. A tax professional can help you model whether accelerating income or deferring deductions makes sense for you. The math is different for every household.

Where can I find the exact tax rates that will apply in 2026 if the cuts expire?

The IRS publishes historical tax tables and brackets. You can find 2016 tax brackets on the IRS website to see what rates would return. However, those brackets will be adjusted for inflation, so the exact 2026 amounts are not yet available.