One Big Beautiful Bill Act: what this law changes in taxes
This law amends federal tax law in 321 places, in 108 sections of the law.
Each provision, in the law’s order
Each provision below is one sentence of the law that says a part of a federal tax law is amended or repealed. The words are the law’s own. The tax type comes from the number of the Code section the sentence names.
- Title VII, Subtitle A, Section 70401: ENHANCEMENT OF EMPLOYER-PROVIDED CHILD CARE CREDIT (d)Income tax, individuals and businesses
Amends section 45F(c)(1)(A)(iii) of the Internal Revenue Code of 1986.
“Section 45F(c)(1)(A)(iii) is amended by inserting ``, or under a contract with an intermediate entity that contracts with one or more qualified child care facilities to provide such child care services'' before the period at the end.”
Effective date, in the law’s words (subsection (g)): “The amendments made by this section shall apply to amounts paid or incurred after December 31, 2025.”
- Title VII, Subtitle A, Section 70401: ENHANCEMENT OF EMPLOYER-PROVIDED CHILD CARE CREDIT (e)Income tax, individuals and businesses
Amends section 45F(c)(2) of the Internal Revenue Code of 1986.
“Section 45F(c)(2) is amended by adding at the end the following new subparagraph: ``(C) Treatment of jointly owned or operated child care facility.--A facility shall not fail to be treated as a qualified child care facility of the taxpayer merely because such facility is jointly owned or operated by the taxpayer and other persons.''.”
Effective date, in the law’s words (subsection (g)): “The amendments made by this section shall apply to amounts paid or incurred after December 31, 2025.”
- Title VII, Subtitle A, Section 70401: ENHANCEMENT OF EMPLOYER-PROVIDED CHILD CARE CREDIT (f)Income tax, individuals and businesses
Amends section 45F of the Internal Revenue Code of 1986.
“Section 45F is amended by adding at the end the following new subsection: ``(g) Regulations and Guidance.--The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this section, including guidance to carry out the purposes of paragraphs (1)(A)(iii) and (2)(C) of subsection (c).''.”
Effective date, in the law’s words (subsection (g)): “The amendments made by this section shall apply to amounts paid or incurred after December 31, 2025.”
- Title VII, Subtitle A, Section 70402: ENHANCEMENT OF ADOPTION CREDIT (a)Individual income tax
Amends section 23(a) of the Internal Revenue Code of 1986.
“Section 23(a) is amended by adding at the end the following new paragraph: ``(4) Portion of credit refundable.--So much of the credit allowed under paragraph (1) as does not exceed $5,000 shall be treated as a credit allowed under subpart C and not as a credit allowed under this subpart.''.”
Effective date, in the law’s words (subsection (d)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70402: ENHANCEMENT OF ADOPTION CREDIT (b)Individual income tax
Amends section 23(h) of the Internal Revenue Code of 1986.
“Section 23(h) is amended to read as follows: ``(h) Adjustments for Inflation.-- ``(1) In general.--In the case of a taxable year beginning after December 31, 2002, each of the dollar amounts in paragraphs (3) and (4) of subsection (a) and paragraphs (1) and (2)(A)(i) of subsection (b) shall be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2001' for `calendar year 2016' in subparagraph (A)(ii) thereof.”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (d)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70402: ENHANCEMENT OF ADOPTION CREDIT (c)Individual income tax
Amends section 23(c)(1) of the Internal Revenue Code of 1986.
“Section 23(c)(1) is amended by striking ``credit allowable under subsection (a)'' and inserting ``portion of the credit allowable under subsection (a) which is allowed under this subpart''.”
Effective date, in the law’s words (subsection (d)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70403: RECOGNIZING INDIAN TRIBAL GOVERNMENTS FOR PURPOSES OF DETERMINING WHETHER A CHILD HAS SPECIAL NEEDS FOR PURPOSES OF THE ADOPTION CREDIT (a)Individual income tax
Amends section 23(d)(3) of the Internal Revenue Code of 1986.
“Section 23(d)(3) is amended-- (1) in subparagraph (A), by inserting ``or Indian tribal government'' after ``a State'', and (2) in subparagraph (B), by inserting ``or Indian tribal government'' after ``such State''.”
Effective date, in the law’s words (subsection (b)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70404: ENHANCEMENT OF THE DEPENDENT CARE ASSISTANCE PROGRAM (a)Income tax, individuals and businesses
Amends section 129(a)(2)(A) of the Internal Revenue Code of 1986.
Old New $5,000 ($2,500 $7,500 ($3,750 “Section 129(a)(2)(A) is amended by striking ``$5,000 ($2,500'' and inserting ``$7,500 ($3,750''.”
Effective date, in the law’s words (subsection (b)): “The amendment made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70405: ENHANCEMENT OF CHILD AND DEPENDENT CARE TAX CREDIT (a)Individual income tax
Amends section 21(a) of the Internal Revenue Code of 1986.
“Paragraph (2) of section 21(a) is amended to read as follows: ``(2) Applicable percentage defined.--For purposes of paragraph (1), the term `applicable percentage' means 50 percent-- ``(A) reduced (but not below 35 percent) by 1 percentage point for each $2,000 or fraction thereof by which the taxpayer's adjusted gross income for the taxable year exceeds $15,000, and ``(B) further reduced (but not below 20 percent) by 1 percentage point for each $2,000 ($4,000 in the case of a joint return) or fraction thereof by which the taxpayer's adjusted gross income for the taxable year exceeds $75,000 ($150,000 in the case of a joint return).''.”
Effective date, in the law’s words (subsection (b)): “The amendment made by this section shall apply to taxable years beginning after December 31, 2025. Subchapter B--Permanent Investments in Students and Reforms to Tax- exempt Institutions”
- Title VII, Subtitle A, Section 70411: TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO SCHOLARSHIP GRANTING ORGANIZATIONS (a)Individual income tax
Adds section 25F to the Internal Revenue Code of 1986: QUALIFIED ELEMENTARY AND SECONDARY EDUCATION SCHOLARSHIPS.
“Subpart A of part IV of subchapter A of chapter 1 is amended by inserting after section 25E the following new section: ``SEC. 25F. QUALIFIED ELEMENTARY AND SECONDARY EDUCATION SCHOLARSHIPS. ``(a) Allowance of Credit.--In the case of an individual who is a citizen or resident of the United States (within the meaning of section 7701(a)(9)), there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the aggregate amount of qualified contributions made by the taxpayer during the taxable year. ``(b) Limitations.-- ``(1) In general.--The credit allowed under subsection (a) to any taxpayer for any taxable year shall not exceed $1,700.”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (c)): “(1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years ending after December 31, 2026. (2) Exclusion from gross income.--The amendments made by subsection (b) shall apply to amounts received after December 31, 2026, in taxable years ending after such date.”
- Title VII, Subtitle A, Section 70411: TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO SCHOLARSHIP GRANTING ORGANIZATIONS (a)Individual income tax
Amends section 25(e)(1)(C) of the Internal Revenue Code of 1986.
“Section 25(e)(1)(C) is amended by striking ``and 25D'' and inserting ``25D, and 25F''. (B)”
Effective date, in the law’s words (subsection (c)): “(1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years ending after December 31, 2026. (2) Exclusion from gross income.--The amendments made by subsection (b) shall apply to amounts received after December 31, 2026, in taxable years ending after such date.”
- Title VII, Subtitle A, Section 70411: TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO SCHOLARSHIP GRANTING ORGANIZATIONS (b)Income tax, individuals and businesses
Adds section 139K to the Internal Revenue Code of 1986: SCHOLARSHIPS FOR QUALIFIED ELEMENTARY OR SECONDARY EDUCATION EXPENSES OF ELIGIBLE STUDENTS.
“Part III of subchapter B of chapter 1 is amended by inserting before section 140 the following new section: ``SEC. 139K. SCHOLARSHIPS FOR QUALIFIED ELEMENTARY OR SECONDARY EDUCATION EXPENSES OF ELIGIBLE STUDENTS. ``(a) In General.--In the case of an individual, gross income shall not include any amounts provided to such individual or any dependent of such individual pursuant to a scholarship for qualified elementary or secondary education expenses of an eligible student which is provided by a scholarship granting organization.”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (c)): “(1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years ending after December 31, 2026. (2) Exclusion from gross income.--The amendments made by subsection (b) shall apply to amounts received after December 31, 2026, in taxable years ending after such date.”
- Title VII, Subtitle A, Section 70412: EXCLUSION FOR EMPLOYER PAYMENTS OF STUDENT LOANS (a)Income tax, individuals and businesses
Amends section 127(c)(1)(B) of the Internal Revenue Code of 1986.
“Section 127(c)(1)(B) is amended by striking ``in the case of payments made before January 1, 2026,''.”
Effective date, in the law’s words (subsection (c)): “The amendment made by this section shall apply to payments made after December 31, 2025.”
- Title VII, Subtitle A, Section 70412: EXCLUSION FOR EMPLOYER PAYMENTS OF STUDENT LOANS (b)Income tax, individuals and businesses
Amends section 127 of the Internal Revenue Code of 1986.
“Section 127 is amended-- (1) by redesignating subsection (d) as subsection (e), and (2) by inserting after subsection (c) the following new subsection: ``(d) Inflation Adjustment.-- ``(1) In general.--In the case of any taxable year beginning after 2026, both of the $5,250 amounts in subsection (a)(2) shall each be increased by an amount equal to-- ``(A) such dollar amount, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2025' for `calendar year 2016' in subparagraph (A)(ii) thereof.”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (c)): “The amendment made by this section shall apply to payments made after December 31, 2025.”
- Title VII, Subtitle A, Section 70413: ADDITIONAL EXPENSES TREATED AS QUALIFIED HIGHER EDUCATION EXPENSES FOR PURPOSES OF 529 ACCOUNTS (a)Income tax, individuals and businesses
Amends section 529(c)(7) of the Internal Revenue Code of 1986.
“Section 529(c)(7) is amended to read as follows: ``(7) Treatment of elementary and secondary tuition.--Any reference in this section to the term `qualified higher education expense' shall include a reference to the following expenses in connection with enrollment or attendance at, or for students enrolled at or attending, an elementary or secondary public, private, or religious school: ``(A) Tuition. ``(B) Curriculum and curricular materials. ``(C) Books or other instructional materials. ``(D) Online educational materials.”
The quote stops here. The law’s text has the rest.
- Title VII, Subtitle A, Section 70413: ADDITIONAL EXPENSES TREATED AS QUALIFIED HIGHER EDUCATION EXPENSES FOR PURPOSES OF 529 ACCOUNTS (b)Income tax, individuals and businesses
Amends section 529(e)(3) of the Internal Revenue Code of 1986.
Old New $10,000 $20,000 “The last sentence of section 529(e)(3) is amended by striking ``$10,000'' and inserting ``$20,000''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70414: CERTAIN POSTSECONDARY CREDENTIALING EXPENSES TREATED AS QUALIFIED HIGHER EDUCATION EXPENSES FOR PURPOSES OF 529 ACCOUNTS (a)Income tax, individuals and businesses
Amends section 529(e)(3) of the Internal Revenue Code of 1986.
“Section 529(e)(3) is amended by adding at the end the following new subparagraph: ``(C) Certain postsecondary credentialing expenses.--The term `qualified higher education expenses' includes qualified postsecondary credentialing expenses (as defined in subsection (f)).''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to distributions made after the date of the enactment of this Act.”
- Title VII, Subtitle A, Section 70414: CERTAIN POSTSECONDARY CREDENTIALING EXPENSES TREATED AS QUALIFIED HIGHER EDUCATION EXPENSES FOR PURPOSES OF 529 ACCOUNTS (b)Income tax, individuals and businesses
Amends section 529 of the Internal Revenue Code of 1986.
“Section 529 is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: ``(f) Qualified Postsecondary Credentialing Expenses.--For purposes of this section-- ``(1) In general.--The term `qualified postsecondary credentialing expenses' means-- ``(A) tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary in a recognized postsecondary credential program, or any other expense incurred in connection with enrollment in or attendance at a recognized postsecondary credential program if such expense would, if incurred in connection with enrollment or attendance at an”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to distributions made after the date of the enactment of this Act.”
- Title VII, Subtitle A, Section 70415: MODIFICATION OF EXCISE TAX ON INVESTMENT INCOME OF CERTAIN PRIVATE COLLEGES AND UNIVERSITIES (a)Excise taxes
Amends section 4968 of the Internal Revenue Code of 1986.
“Section 4968 is amended to read as follows: ``SEC. 4968. EXCISE TAX BASED ON INVESTMENT INCOME OF PRIVATE COLLEGES AND UNIVERSITIES. ``(a) Tax Imposed.--There is hereby imposed on each applicable educational institution for the taxable year a tax equal to the applicable percentage of the net investment income of such institution for the taxable year.”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70415: MODIFICATION OF EXCISE TAX ON INVESTMENT INCOME OF CERTAIN PRIVATE COLLEGES AND UNIVERSITIES (a)Other tax law
Amends section 6033 of the Internal Revenue Code of 1986.
“Section 6033 is amended by redesignating subsection (o) as subsection (p) and by inserting after subsection (n) the following new subsection: ``(o) Requirement to Report Certain Information With Respect to Excise Tax Based on Investment Income of Private Colleges and Universities.--Each applicable educational institution described in section 4968(c) which is subject to the requirements of subsection (a) shall include on the return required under subsection (a)-- ``(1) the number of tuition-paying students taken into account under section 4968(c), and ``(2) the number of students of such institution (determined under the rules of section 4968(e)).''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70416: EXPANDING APPLICATION OF TAX ON EXCESS COMPENSATION WITHIN TAX-EXEMPT ORGANIZATIONS (a)Excise taxes
Amends section 4960(c)(2) of the Internal Revenue Code of 1986.
“Section 4960(c)(2) is amended to read as follows: ``(2) Covered employee.--For purposes of this section, the term `covered employee' means any employee of an applicable tax-exempt organization (or any predecessor of such an organization) and any former employee of such an organization (or predecessor) who was such an employee during any taxable year beginning after December 31, 2016.''.”
Effective date, in the law’s words (subsection (b)): “The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2025. Subchapter C--Permanent Investments in Community Development”
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (a)Income tax, individuals and businesses
Amends sections 1400Z, 1(c)(2)(B) of the Internal Revenue Code of 1986.
“Section 1400Z-1(c)(2)(B) is amended by striking ``beginning on the date of the enactment of the Tax Cuts and Jobs Act'' and inserting ``beginning on the decennial determination date''. (2) Decennial determination date.--”
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (a)Income tax, individuals and businesses
Amends sections 1400Z, 1(c)(2) of the Internal Revenue Code of 1986.
“Section 1400Z-1(c)(2) is amended by adding at the end the following new subparagraph: ``(C) Decennial determination date.--The term `decennial determination date' means-- ``(i) July 1, 2026, and ``(ii) each July 1 of the year that is 10 years after the preceding decennial determination date under this subparagraph.''. (3) Repeal of special rule for puerto rico.--”
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (a)Income tax, individuals and businesses
Amends sections 1400Z, 1(b) of the Internal Revenue Code of 1986.
“Section 1400Z- 1(b) is amended by striking paragraph (3). (4) Limitation on number of designations.--”
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (a)Income tax, individuals and businesses
Amends sections 1400Z, 1(d)(1) of the Internal Revenue Code of 1986.
“Section 1400Z- 1(d)(1) is amended-- (A) in paragraph (1)-- (i) by striking ``and subsection (b)(3)'', and (ii) by inserting ``during any period'' after ``the number of population census tracts in a State that may be designated as qualified opportunity zones under this section'', and (B) in paragraph (2), by inserting ``during any period'' before the period at the end. (5) Effective dates.-- (A) In general.--Except as provided in subparagraph (B), the amendments made by this subsection shall take effect on the date of the enactment of this Act. (B) Puerto rico.--The amendment made by paragraph (3) shall take effect on December 31, 2026.”
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (b)Income tax, individuals and businesses
Amends sections 1400Z, 1(c) of the Internal Revenue Code of 1986.
“Section 1400Z- 1(c) is amended by striking all that precedes paragraph (2) and inserting the following: ``(c) Other Definitions.--For purposes of this section-- ``(1) Low-income communities.--The term `low-income community' means any population census tract if-- ``(A) such population census tract has a median family income that-- ``(i) in the case of a population census tract not located within a metropolitan area, does not exceed 70 percent of the statewide median family income, or ``(ii) in the case of a population census tract located within a metropolitan area, does not exceed 70 percent of the metropolitan area median family income, or ``(B) such population census tract-- ``(i) has a”
The quote stops here. The law’s text has the rest.
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (b)Income tax, individuals and businesses
Amends sections 1400Z, 1 of the Internal Revenue Code of 1986.
“Section 1400Z-1 is amended by striking subsection (e) and by redesignating subsection (f) as subsection (e). (3) Period for which designation is in effect.--”
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (b)Income tax, individuals and businesses
Amends sections 1400Z, 1(e) of the Internal Revenue Code of 1986.
“Section 1400Z-1(e), as redesignated by paragraph (2), is amended to read as follows: ``(e) Period for Which Designation Is in Effect.-- ``(1) In general.--A designation as a qualified opportunity zone shall remain in effect for the period beginning on the applicable start date and ending on the day before the date that is 10 years after the applicable start date. ``(2) Applicable start date.--For purposes of this section, the term `applicable start date' means, with respect to any qualified opportunity zone designated under this section, the January 1 following the date on which such qualified opportunity zone was certified and designated by the Secretary under subsection (b)(1)(B).''.”
The quote stops here. The law’s text has the rest.
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (c)Income tax, individuals and businesses
Amends sections 1400Z, 2(a)(2) of the Internal Revenue Code of 1986.
“Section 1400Z-2(a)(2) is amended to read as follows: ``(2) Election.--No election may be made under paragraph (1) with respect to a sale or exchange if an election previously made with respect to such sale or exchange is in effect.''. (2) Modification of rules for deferral of gain.--”
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (c)Income tax, individuals and businesses
Amends sections 1400Z, 2(b) of the Internal Revenue Code of 1986.
“Section 1400Z-2(b) is amended to read as follows: ``(b) Deferral of Gain Invested in Opportunity Zone Property.-- ``(1) Year of inclusion.--Gain to which subsection (a)(1)(B) applies shall be included in gross income in the taxable year which includes the earlier of-- ``(A) the date on which such investment is sold or exchanged, or ``(B) the date which is 5 years after the date the investment in the qualified opportunity fund was made.”
The quote stops here. The law’s text has the rest.
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (c)Income tax, individuals and businesses
Amends sections 1400Z, 2(c) of the Internal Revenue Code of 1986.
“Section 1400Z-2(c) is amended by striking ``makes an election under this clause'' and all that follows and inserting ``makes an election under this subsection, the basis of such investment shall be equal to-- ``(A) in the case of an investment sold before the date that is 30 years after the date of the investment, the fair market value of such investment on the date such investment is sold or exchanged, or ``(B) in any other case, the fair market value of such investment on the date that is 30 years after the date of the investment.''. (4) Determination of qualified opportunity zone property.-- (A) Qualified opportunity zone business property.--”
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (c)Income tax, individuals and businesses
Amends sections 1400Z, 2(d)(2)(D)(i)(I) of the Internal Revenue Code of 1986.
“Section 1400Z-2(d)(2)(D)(i)(I) is amended by striking ``December 31, 2017'' and inserting ``the applicable start date (as defined in section 1400Z-1(e)(2)) with respect to the qualified opportunity zone described in subclause (III)''. (B) Qualified opportunity zone stock and partnership interests.--”
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (c)Income tax, individuals and businesses
Amends sections 1400Z, 2(d)(2) of the Internal Revenue Code of 1986.
“Section 1400Z-2(d)(2) is amended-- (i) by striking ``December 31, 2017,'' each place it appears in subparagraphs (B)(i)(I) and (C)(i) and inserting ``the applicable date'', and (ii) by adding at the end the following new subparagraph: ``(E) Applicable date.--For purposes of this subparagraph, the term `applicable date' means, with respect to any corporation or partnership which is a qualified opportunity zone business, the earliest date described in subparagraph (D)(i)(I) with respect to the qualified opportunity zone business property held by such qualified opportunity zone business.''. (C) Special rule for improvement of existing structures in rural areas.--”
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (c)Income tax, individuals and businesses
Amends sections 1400Z, 2(d)(2)(D)(ii) of the Internal Revenue Code of 1986.
“Section 1400Z-2(d)(2)(D)(ii) is amended by inserting ``(50 percent of such adjusted basis in the case of property in a qualified opportunity zone comprised entirely of a rural area (as defined in subsection (b)(2)(C)(ii))'' after ``the adjusted basis of such property''. (5) Effective dates.-- (A) In general.--Except as otherwise provided in this paragraph, the amendments made by this subsection shall apply to amounts invested in qualified opportunity funds after December 31, 2026. (B) Acquisition of qualified opportunity zone property.--The amendments made by subparagraphs (A) and (B) of paragraph (4) shall apply to property acquired after December 31, 2026.”
The quote stops here. The law’s text has the rest.
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (d)Other tax law
Adds section 6039K to the Internal Revenue Code of 1986: RETURNS WITH RESPECT TO QUALIFIED OPPORTUNITY FUNDS AND QUALIFIED RURAL OPPORTUNITY FUNDS.
“Subpart A of part III of subchapter A of chapter 61 is amended by inserting after section 6039J the following new sections: ``SEC. 6039K. RETURNS WITH RESPECT TO QUALIFIED OPPORTUNITY FUNDS AND QUALIFIED RURAL OPPORTUNITY FUNDS. ``(a) In General.--Every qualified opportunity fund shall file an annual return (at such time and in such manner as the Secretary may prescribe) containing the information described in subsection (b).”
The quote stops here. The law’s text has the rest.
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (d)Other tax law
Adds section 6726 to the Internal Revenue Code of 1986: FAILURE TO COMPLY WITH INFORMATION REPORTING REQUIREMENTS RELATING TO QUALIFIED OPPORTUNITY FUNDS AND QUALIFIED RURAL OPPORTUNITY FUNDS.
“Part II of subchapter B of chapter 68 is amended by inserting after section 6725 the following new section: ``SEC. 6726. FAILURE TO COMPLY WITH INFORMATION REPORTING REQUIREMENTS RELATING TO QUALIFIED OPPORTUNITY FUNDS AND QUALIFIED RURAL OPPORTUNITY FUNDS. ``(a) In General.--If any person required to file a return under section 6039K fails to file a complete and correct return under such section in the time and in the manner prescribed therefor, such person shall pay a penalty of $500 for each day during which such failure continues. ``(b) Limitation.-- ``(1) In general.--The maximum penalty under this section on failures with respect to any 1 return shall not exceed $10,000.”
The quote stops here. The law’s text has the rest.
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (d)Other tax law
Amends section 6724(d)(2) of the Internal Revenue Code of 1986.
“Section 6724(d)(2), as amended by the preceding provisions of this Act, is amended-- (i) by striking ``or'' at the end of subparagraph (LL), (ii) by striking the period at the end of subparagraph (MM) and inserting a comma, and (iii) by inserting after subparagraph (MM) the following new subparagraphs: ``(NN) section 6039K(c) (relating to disposition of qualified opportunity fund investments), or ``(OO) section 6039L (relating to information required from certain qualified opportunity zone businesses and qualified rural opportunity zone businesses).''. (3) Electronic filing.--”
- Title VII, Subtitle A, Section 70421: PERMANENT RENEWAL AND ENHANCEMENT OF OPPORTUNITY ZONES (d)Other tax law
Amends section 6011(e) of the Internal Revenue Code of 1986.
“Section 6011(e) is amended by adding at the end the following new paragraph: ``(8) Qualified opportunity funds and qualified rural opportunity funds.--Notwithstanding paragraphs (1) and (2), any return filed by a qualified opportunity fund or qualified rural opportunity fund under section 6039K shall be filed on magnetic media or other machine-readable form.''. (4) Clerical amendments.-- (A)”
- Title VII, Subtitle A, Section 70422: PERMANENT ENHANCEMENT OF LOW-INCOME HOUSING TAX CREDIT (a)Income tax, individuals and businesses
Amends section 42(h)(3)(I) of the Internal Revenue Code of 1986.
Old New 1.125 1.12 2018, 2019, 2020, and 2021 calendar years after 2025 “Section 42(h)(3)(I) is amended-- (A) by striking ``2018, 2019, 2020, and 2021,'' and inserting ``beginning after December 31, 2025,'', (B) by striking ``1.125'' and inserting ``1.12'', and (C) by striking ``2018, 2019, 2020, and 2021'' in the heading and inserting ``calendar years after 2025''. (2) Effective date.--The amendments made by this subsection shall apply to calendar years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70422: PERMANENT ENHANCEMENT OF LOW-INCOME HOUSING TAX CREDIT (b)Income tax, individuals and businesses
Amends section 42(h)(4) of the Internal Revenue Code of 1986.
“Section 42(h)(4) is amended by striking subparagraph (B) and inserting the following: ``(B) Special rule where minimum percent of buildings is financed with tax-exempt bonds subject to volume cap.--For purposes of subparagraph (A), paragraph (1) shall not apply to any portion of the credit allowable under subsection (a) with respect to a building if-- ``(i) 50 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more obligations described in subparagraph (A), or ``(ii)(I) 25 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more obligations described”
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- Title VII, Subtitle A, Section 70423: PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT (a)Income tax, individuals and businesses
Amends section 45D(f)(1)(H) of the Internal Revenue Code of 1986.
Old New for for each of calendar years 2020 through 2025 for each calendar year after 2019 “Section 45D(f)(1)(H) is amended by striking ``for for each of calendar years 2020 through 2025'' and inserting `` for each calendar year after 2019''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to calendar years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70423: PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT (b)Income tax, individuals and businesses
Amends section 45D(f)(3) of the Internal Revenue Code of 1986.
“Section 45D(f)(3) is amended-- (1) by striking ``If the'' and inserting the following: ``(A) In general.--If the'', and (2) by striking the second sentence and inserting the following: ``(B) Limitation.--No amount may be carried under subparagraph (A) to any calendar year afer the fifth calendar year after the calendar year in which the excess described in such subparagraph occurred. For purposes of this subparagraph, any excess described in subparagraph (A) with respect to any calendar year before 2026 shall be treated as occurring in calendar year 2025.''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to calendar years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70424: PERMANENT AND EXPANDED REINSTATEMENT OF PARTIAL DEDUCTION FOR CHARITABLE CONTRIBUTIONS OF INDIVIDUALS WHO DO NOT ELECT TO ITEMIZE (a)Income tax, individuals and businesses
Amends section 170(p) of the Internal Revenue Code of 1986.
Old New $300 ($600 $1,000 ($2,000 “Section 170(p) is amended-- (1) by striking ``$300 ($600'' and inserting ``$1,000 ($2,000'', and (2) by striking ``beginning in 2021''.”
Effective date, in the law’s words (subsection (b)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70425: 0.5 PERCENT FLOOR ON DEDUCTION OF CONTRIBUTIONS MADE BY INDIVIDUALS (a)Income tax, individuals and businesses
Amends section 170(b) of the Internal Revenue Code of 1986.
“Paragraph (1) of section 170(b) is amended by adding at the end the following new subparagraph: ``(I) 0.5-percent floor.--Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5 percent of the taxpayer's contribution base for the taxable year.”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70425: 0.5 PERCENT FLOOR ON DEDUCTION OF CONTRIBUTIONS MADE BY INDIVIDUALS (a)Income tax, individuals and businesses
Amends section 170(d) of the Internal Revenue Code of 1986.
“Paragraph (1) of section 170(d) is amended by adding at the end the following new subparagraph: ``(C) Contributions disallowed by 0.5-percent floor carried forward only from years in which limitation is exceeded.-- ``(i) In general.--In the case of any taxable year from which an excess is carried forward (determined without regard to this subparagraph) under any carryover rule, the applicable carryover rule shall be applied by increasing the excess determined under such applicable carryover rule for the contribution year (before the application of subparagraph (B)) by the amount attributable to the charitable contributions to which such rule applies which is not allowed as a deduction for”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70425: 0.5 PERCENT FLOOR ON DEDUCTION OF CONTRIBUTIONS MADE BY INDIVIDUALS (a)Income tax, individuals and businesses
Amends section 170(p) of the Internal Revenue Code of 1986.
“Section 170(p), as amended by this Act, is further amended by inserting ``, (b)(1)(I),'' after ``subsections (b)(1)(G)(ii)''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70425: 0.5 PERCENT FLOOR ON DEDUCTION OF CONTRIBUTIONS MADE BY INDIVIDUALS (b)Income tax, individuals and businesses
Amends section 170(b)(1)(G) of the Internal Revenue Code of 1986.
“Clause (i) of section 170(b)(1)(G) is amended to read as follows: ``(i) In general.-- For taxable years beginning after December 31, 2017, any contribution of cash to an organization described in subparagraph (A) shall be allowed as a deduction under subsection (a) to the extent that the aggregate of such contributions does not exceed the excess of-- ``(I) 60 percent of the taxpayer's contribution base for the taxable year, over ``(II) the aggregate amount of contributions taken into account under subparagraph (A) for such taxable year.''. (2) Coordination with other limitations.-- (A) In general.--”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70425: 0.5 PERCENT FLOOR ON DEDUCTION OF CONTRIBUTIONS MADE BY INDIVIDUALS (b)Income tax, individuals and businesses
Amends section 170(b)(1)(G) of the Internal Revenue Code of 1986.
“Clause (iii) of section 170(b)(1)(G) is amended-- (i) by striking ``subparagraphs (a) and (b)'' in the heading and inserting ``subparagraph (a)'', and (ii) in subclause (II), by striking ``, and subparagraph (B)'' and all that follows through ``this subparagraph''. (B) Other contributions.--”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70425: 0.5 PERCENT FLOOR ON DEDUCTION OF CONTRIBUTIONS MADE BY INDIVIDUALS (b)Income tax, individuals and businesses
Amends section 170(b)(1) of the Internal Revenue Code of 1986.
“Subparagraph (B) of section 170(b)(1) is amended-- (i) by striking ``to which subparagraph (A)'' both places it appears and inserting ``to which subparagraph (A) or (G)'', and (ii) in clause (ii), by striking ``over the amount'' and all that follows through ``subparagraph (C)).'' and inserting ``over-- ``(I) the amount of charitable contributions allowable under subparagraph (A) (determined without regard to subparagraph (C)) and subparagraph (G), reduced by ``(II) so much of the contributions taken into account under subparagraph (G) as does not exceed 10 percent of the taxpayer's contribution base.''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70426: 1-PERCENT FLOOR ON DEDUCTION OF CHARITABLE CONTRIBUTIONS MADE BY CORPORATIONS (a)Income tax, individuals and businesses
Amends section 170(b)(2)(A) of the Internal Revenue Code of 1986.
“Section 170(b)(2)(A) is amended to read as follows: ``(A) In general.--Any charitable contribution otherwise allowable (without regard to this subparagraph) as a deduction under this section for any taxable year, other than any contribution to which subparagraph (B) or (C) applies, shall be allowed only to the extent that the aggregate of such contributions-- ``(i) exceeds 1 percent of the taxpayer's taxable income for the taxable year, and ``(ii) does not exceed 10 percent of the taxpayer's taxable income for the taxable year.''.”
Effective date, in the law’s words (subsection (d)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
Official estimate, and an estimate of your own
Official estimate: Joint Committee on Taxation
Confirmed from the official recordThe Joint Committee on Taxation is the tax staff of Congress. It published this table for the tax provisions of this law. Amounts are in billions of dollars for one calendar year. “Proposal” is the committee’s word for those provisions.
| Income category | Change in federal taxes, billions | Change, percent | Average tax rate, present law | Average tax rate, proposal |
|---|---|---|---|---|
| Less than $15,000 | $0.5 | 9.3% | 4.0% | 4.4% |
| $15,000 to $30,000 | -$3.5 | -21.5% | 2.9% | 2.3% |
| $30,000 to $40,000 | -$6.4 | -15.8% | 6.6% | 5.6% |
| $40,000 to $50,000 | -$9.0 | -14.5% | 9.0% | 7.7% |
| $50,000 to $60,000 | -$11.8 | -13.2% | 11.3% | 9.8% |
| $60,000 to $80,000 | -$27.0 | -12.0% | 13.1% | 11.5% |
| $80,000 to $100,000 | -$28.8 | -11.5% | 15.4% | 13.7% |
| $100,000 to $150,000 | -$65.5 | -10.7% | 17.3% | 15.5% |
| $150,000 to $200,000 | -$58.2 | -10.7% | 19.8% | 17.6% |
| $200,000 to $500,000 | -$150.8 | -9.8% | 24.1% | 21.8% |
| $500,000 to $1,000,000 | -$72.8 | -12.3% | 29.8% | 26.1% |
| $1,000,000 and Above | -$114.0 | -10.1% | 31.1% | 27.8% |
| Total, All Taxpayers | -$547.4 | -10.7% | 20.9% | 18.7% |
A negative number is a tax cut for that income category as a whole. The table gives no amount for one household. The committee’s footnotes say what counts as income and as federal taxes. They are in the file.
Joint Committee on Taxation, JCX-37-25, July 29, 2025: Distribution of the estimated revenue effects relative to the present law baseline of the tax provisions in Public Law 119-21. See its official page · Open our saved copy · Saved October 8, 2026 · Fingerprint d4b6df30545ba2b0
Show 2029, 2031 and 2033
| Income category | Change in federal taxes, billions | Change, percent | Average tax rate, present law | Average tax rate, proposal |
|---|---|---|---|---|
| Less than $15,000 | $2.0 | 42.2% | 3.3% | 4.7% |
| $15,000 to $30,000 | $0.3 | 1.6% | 3.1% | 3.2% |
| $30,000 to $40,000 | -$3.6 | -8.2% | 6.6% | 6.1% |
| $40,000 to $50,000 | -$6.0 | -8.8% | 9.1% | 8.3% |
| $50,000 to $60,000 | -$9.0 | -9.2% | 11.3% | 10.3% |
| $60,000 to $80,000 | -$22.3 | -9.0% | 13.1% | 11.9% |
| $80,000 to $100,000 | -$23.5 | -8.5% | 15.4% | 14.1% |
| $100,000 to $150,000 | -$52.1 | -7.9% | 17.2% | 15.9% |
| $150,000 to $200,000 | -$46.7 | -8.0% | 19.8% | 18.2% |
| $200,000 to $500,000 | -$135.0 | -8.1% | 24.3% | 22.3% |
| $500,000 to $1,000,000 | -$64.3 | -10.2% | 29.9% | 26.8% |
| $1,000,000 and Above | -$87.6 | -7.6% | 30.8% | 28.3% |
| Total, All Taxpayers | -$447.8 | -8.2% | 20.8% | 19.1% |
| Income category | Change in federal taxes, billions | Change, percent | Average tax rate, present law | Average tax rate, proposal |
|---|---|---|---|---|
| Less than $15,000 | $2.4 | 49.4% | 3.1% | 4.7% |
| $15,000 to $30,000 | $1.0 | 4.7% | 3.4% | 3.5% |
| $30,000 to $40,000 | -$3.6 | -7.6% | 6.7% | 6.2% |
| $40,000 to $50,000 | -$6.2 | -8.4% | 9.1% | 8.3% |
| $50,000 to $60,000 | -$9.5 | -9.0% | 11.3% | 10.3% |
| $60,000 to $80,000 | -$22.8 | -8.6% | 13.1% | 12.0% |
| $80,000 to $100,000 | -$24.5 | -8.1% | 15.5% | 14.2% |
| $100,000 to $150,000 | -$51.4 | -7.2% | 17.1% | 15.8% |
| $150,000 to $200,000 | -$43.3 | -6.9% | 19.7% | 18.3% |
| $200,000 to $500,000 | -$105.7 | -5.8% | 24.3% | 22.9% |
| $500,000 to $1,000,000 | -$57.1 | -8.5% | 29.9% | 27.3% |
| $1,000,000 and Above | -$77.5 | -6.5% | 30.7% | 28.6% |
| Total, All Taxpayers | -$398.1 | -6.8% | 20.7% | 19.3% |
| Income category | Change in federal taxes, billions | Change, percent | Average tax rate, present law | Average tax rate, proposal |
|---|---|---|---|---|
| Less than $15,000 | $2.8 | 56.1% | 3.0% | 4.7% |
| $15,000 to $30,000 | $1.1 | 4.6% | 3.6% | 3.8% |
| $30,000 to $40,000 | -$4.2 | -8.1% | 6.8% | 6.3% |
| $40,000 to $50,000 | -$6.3 | -8.1% | 8.9% | 8.2% |
| $50,000 to $60,000 | -$10.0 | -8.9% | 11.1% | 10.1% |
| $60,000 to $80,000 | -$25.3 | -8.8% | 13.1% | 12.0% |
| $80,000 to $100,000 | -$26.9 | -8.1% | 15.5% | 14.2% |
| $100,000 to $150,000 | -$55.5 | -7.1% | 17.0% | 15.7% |
| $150,000 to $200,000 | -$46.5 | -6.8% | 19.6% | 18.2% |
| $200,000 to $500,000 | -$113.6 | -5.7% | 24.4% | 23.0% |
| $500,000 to $1,000,000 | -$57.3 | -7.9% | 30.0% | 27.6% |
| $1,000,000 and Above | -$76.7 | -6.0% | 30.6% | 28.7% |
| Total, All Taxpayers | -$418.2 | -6.6% | 20.7% | 19.3% |
Show the same estimate measured against the current policy baseline (JCX-36-25)
| Income category | Change in federal taxes, billions | Change, percent | Average tax rate, present law | Average tax rate, proposal |
|---|---|---|---|---|
| Less than $15,000 | $2.8 | 70.8% | 2.8% | 4.7% |
| $15,000 to $30,000 | $6.0 | 46.0% | 2.2% | 3.2% |
| $30,000 to $40,000 | $2.3 | 6.1% | 5.7% | 6.1% |
| $40,000 to $50,000 | $0.8 | 1.2% | 8.2% | 8.3% |
| $50,000 to $60,000 | -$0.9 | -1.0% | 10.4% | 10.3% |
| $60,000 to $80,000 | -$3.0 | -1.3% | 12.1% | 11.9% |
| $80,000 to $100,000 | -$3.7 | -1.4% | 14.3% | 14.1% |
| $100,000 to $150,000 | -$8.2 | -1.3% | 16.1% | 15.9% |
| $150,000 to $200,000 | -$9.2 | -1.7% | 18.5% | 18.2% |
| $200,000 to $500,000 | -$34.7 | -2.2% | 22.8% | 22.3% |
| $500,000 to $1,000,000 | -$9.0 | -1.6% | 27.2% | 26.8% |
| $1,000,000 and Above | -$23.1 | -2.1% | 29.0% | 28.3% |
| Total, All Taxpayers | -$79.9 | -1.6% | 19.4% | 19.1% |
| Income category | Change in federal taxes, billions | Change, percent | Average tax rate, present law | Average tax rate, proposal |
|---|---|---|---|---|
| Less than $15,000 | $3.3 | 84.3% | 2.5% | 4.7% |
| $15,000 to $30,000 | $7.0 | 45.0% | 2.4% | 3.5% |
| $30,000 to $40,000 | $2.5 | 6.2% | 5.8% | 6.2% |
| $40,000 to $50,000 | $0.9 | 1.3% | 8.2% | 8.3% |
| $50,000 to $60,000 | -$0.8 | -0.8% | 10.3% | 10.3% |
| $60,000 to $80,000 | -$2.1 | -0.9% | 12.1% | 12.0% |
| $80,000 to $100,000 | -$2.7 | -1.0% | 14.3% | 14.2% |
| $100,000 to $150,000 | -$4.3 | -0.6% | 15.9% | 15.8% |
| $150,000 to $200,000 | -$3.6 | -0.6% | 18.4% | 18.3% |
| $200,000 to $500,000 | $1.6 | 0.1% | 22.9% | 22.9% |
| $500,000 to $1,000,000 | -$0.9 | -0.1% | 27.3% | 27.3% |
| $1,000,000 and Above | -$10.8 | -1.0% | 28.8% | 28.6% |
| Total, All Taxpayers | -$9.9 | -0.2% | 19.3% | 19.3% |
| Income category | Change in federal taxes, billions | Change, percent | Average tax rate, present law | Average tax rate, proposal |
|---|---|---|---|---|
| Less than $15,000 | $3.8 | 98.7% | 2.4% | 4.7% |
| $15,000 to $30,000 | $7.6 | 43.0% | 2.6% | 3.8% |
| $30,000 to $40,000 | $2.3 | 5.1% | 6.0% | 6.3% |
| $40,000 to $50,000 | $1.0 | 1.5% | 8.1% | 8.2% |
| $50,000 to $60,000 | -$0.9 | -0.8% | 10.2% | 10.1% |
| $60,000 to $80,000 | -$3.0 | -1.1% | 12.1% | 12.0% |
| $80,000 to $100,000 | -$3.2 | -1.0% | 14.3% | 14.2% |
| $100,000 to $150,000 | -$5.1 | -0.7% | 15.9% | 15.7% |
| $150,000 to $200,000 | -$4.4 | -0.7% | 18.4% | 18.2% |
| $200,000 to $500,000 | $2.3 | 0.1% | 23.0% | 23.0% |
| $500,000 to $1,000,000 | $0.7 | 0.1% | 27.5% | 27.6% |
| $1,000,000 and Above | -$7.6 | -0.6% | 28.8% | 28.7% |
| Total, All Taxpayers | -$6.3 | -0.1% | 19.4% | 19.3% |
Joint Committee on Taxation, JCX-36-25, July 29, 2025: Distribution of the estimated revenue effects relative to the current policy baseline of the tax provisions in Public Law 119-21. See its official page · Open our saved copy · Saved October 8, 2026 · Fingerprint 81b95a0a0d4c2968
Joint Committee on Taxation, JCX-35-25, July 1, 2025: Estimated revenue effects, relative to the present law baseline, of the tax provisions in Title VII of the bill as the Senate passed it (JCX-35-25). See its official page · Open our saved copy · Saved October 8, 2026 · Fingerprint b33299c3d829aa38
The table in this file is printed in a way a rule cannot read with certainty. Our copy is saved and linked. No number from it is shown.
Estimate: 2025 income tax with and without this law
EstimateThe change Public Law 119-21 makes to the standard deduction for tax year 2025. The 2025 tax rate tables are the same with and without the law.
Nothing typed here is stored or logged. With scripts on, this browser works out the estimate and sends nothing.
| Filing status | Under the law | Without it |
|---|---|---|
| Married filing jointly, or surviving spouse | $31,500 | $30,000 |
| Head of household | $23,625 | $22,500 |
| Single | $15,750 | $15,000 |
| Married filing separately | $15,750 | $15,000 |
Internal Revenue Service, Rev. Proc. 2024-40, November 4, 2024: Revenue Procedure 2024-40, Internal Revenue Bulletin 2024-45: tax rate tables and standard deduction for tax year 2025, as the law stood on October 22, 2024. See its official page · Open our saved copy · Saved October 8, 2026 · Fingerprint 3f72cb99cc257c41
Internal Revenue Service, Rev. Proc. 2025-32, November 3, 2025: Revenue Procedure 2025-32, Internal Revenue Bulletin 2025-45: changes to the 2025 items of Revenue Procedure 2024-40 made by Public Law 119-21. See its official page · Open our saved copy · Saved October 8, 2026 · Fingerprint cc4022d0c545db20
How the estimate is worked out, and what it leaves out
- Taxable income = income before the standard deduction, minus the standard deduction (never below zero).
- Income tax = the amount the 2025 tax rate table gives for that taxable income.
- Difference = income tax under the law minus income tax without it.
The estimate leaves out:
- the added deduction for people 65 and older or blind, and the law's new deduction for seniors
- the law's new deductions for tips, overtime pay and car loan interest
- the child tax credit and every other credit
- itemized deductions, including the limit on the deduction for State and local taxes
- capital gains and qualified dividends, which have their own rates
- the alternative minimum tax, payroll taxes and State taxes
- every change that starts in tax year 2026 or later
For taxable income under $100,000 the tax table of the Internal Revenue Service works in $50 steps, so the tax on a return can differ from this estimate by a few dollars.
Where this comes from
The provisions are read from our own saved copy of the law. The code beside it is its fingerprint, a short code that changes if the file’s contents change.
Read from: Public Law 119-21, official text · Saved October 5, 2026 · Fingerprint 84000b07c382db50
How we read a law for this section
- A provision is one sentence of the law that says a part of a tax law "is amended" or "is repealed". The words are quoted from our saved copy of the law. Words inside text the law inserts into another law are not read as provisions.
- A sentence counts when it names the Internal Revenue Code of 1986 or title 26 of the United States Code; when it says "such Code" and the last Code named in that section of the law is the Internal Revenue Code of 1986; when the law says that its amendments are to be read as amendments to the Internal Revenue Code of 1986 and the sentence names no other law; or when the sentence names no law at all and the amending sentence before it, in the same section of the law, amended the Internal Revenue Code of 1986.
- A sentence that amends the Harmonized Tariff Schedule of the United States or the Tariff Act of 1930 is listed under "Tariffs and customs duties".
- The tax type comes from the number of the Code section the sentence names. Sections 1 to 5, 21 to 26, 32, 35, 36, 36B, 62, 63, 67, 68, 151 to 153 and 211 to 224 apply to individuals: "Individual income tax". Sections 11, 12, 59A, 241 to 250, 301 to 385, 531 to 565 and 1501 to 1564 apply to corporations: "Corporate income tax". Every other section from 1 to 1400Z and 1411 to 1564 is "Income tax, individuals and businesses". Sections 1401 to 1403 and 3101 to 3512: "Payroll taxes". Sections 2001 to 2801: "Estate and gift taxes". Sections 4001 to 5891: "Excise taxes". Every other section, such as the rules on returns, penalties and trust funds: "Other tax law".
- A sentence that names a chapter or subtitle of the Code and no section is sorted by that chapter or subtitle. A sentence that adds a new section is sorted by the new section's number.
- "Old and new" is shown only where the law says both: "striking X and inserting Y". Other dollar amounts and percentages in the sentence are listed as printed.
- A change to a table of contents or a change headed "Conforming" or "Clerical" is listed apart.
- A law reads "This law changes no tax" only when our saved copy reaches the end of the law, no sentence above is found, the text does not name the Internal Revenue Code of 1986, the Internal Revenue Service, the Harmonized Tariff Schedule of the United States, a tariff, a duty or a named tax, and the margin of the official print cites title 26 of the United States Code nowhere.
- Nothing here says how much tax anyone pays. That takes figures the law's text does not state.