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.
Income tax, individuals and businesses: 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Each provision below is one sentence of the law that says a part of a federal tax law is amended or repealed.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 70105: EXTENSION AND ENHANCEMENT OF DEDUCTION FOR QUALIFIED BUSINESS INCOME (a)Income tax, individuals and businesses
Amends section 199A(b)(3) of the Internal Revenue Code of 1986.
Old New $50,000 ($100,000 in the case of a joint return) $75,000 ($150,000 in the case of a joint return) “Subparagraph (B) of section 199A(b)(3) is amended by striking ``$50,000 ($100,000 in the case of a joint return)'' each place it appears and inserting ``$75,000 ($150,000 in the case of a joint return)''. (2) Conforming amendment.--”
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 70105: EXTENSION AND ENHANCEMENT OF DEDUCTION FOR QUALIFIED BUSINESS INCOME (a)Income tax, individuals and businesses
Amends section 199A(d) of the Internal Revenue Code of 1986.
Old New $50,000 ($100,000 in the case of a joint return) $75,000 ($150,000 in the case of a joint return) “Paragraph (3) of section 199A(d) is amended by striking ``$50,000 ($100,000 in the case of a joint return)'' each place it appears and inserting ``$75,000 ($150,000 in the case of a joint return)''.”
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 70105: EXTENSION AND ENHANCEMENT OF DEDUCTION FOR QUALIFIED BUSINESS INCOME (b)Income tax, individuals and businesses
Amends section 199A of the Internal Revenue Code of 1986.
“Subsection (i) of section 199A is amended to read as follows: ``(i) Minimum Deduction for Active Qualified Business Income.-- ``(1) In general.--In the case of an applicable taxpayer for any taxable year, the deduction allowed under subsection (a) for the taxable year shall be equal to the greater of-- ``(A) the amount of such deduction determined without regard to this subsection, or ``(B) $400.”
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 70105: EXTENSION AND ENHANCEMENT OF DEDUCTION FOR QUALIFIED BUSINESS INCOME (b)Income tax, individuals and businesses
Amends section 199A(a) of the Internal Revenue Code of 1986.
“Section 199A(a) is amended by inserting ``except as provided in subsection (i),'' before ``there''.”
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 70107: EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNTS AND MODIFICATION OF PHASEOUT THRESHOLDS (a)Income tax, individuals and businesses
Amends section 55(d)(4) of the Internal Revenue Code of 1986.
“Section 55(d)(4) is amended-- (1) in subparagraph (A), by striking ``, and before January 1, 2026'', and (2) by striking ``and Before 2026'' in the heading.”
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.”
- Title VII, Subtitle A, Section 70107: EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNTS AND MODIFICATION OF PHASEOUT THRESHOLDS (b)Income tax, individuals and businesses
Amends section 55(d)(4)(B) of the Internal Revenue Code of 1986.
Old New 2018 2018 (2026, in the case of the $1,000,000 amount in subparagraph (A)(ii)(I)) “Section 55(d)(4)(B) is amended-- (1) by striking ``2018'' and inserting ``2018 (2026, in the case of the $1,000,000 amount in subparagraph (A)(ii)(I))'', and (2) by striking ``determined by substituting `calendar year 2017' for `calendar year 2016' in subparagraph (A)(ii) thereof.'' and inserting ``determined by substituting for `calendar year 2016' in subparagraph (A)(ii) thereof-- ``(1) `calendar year 2017', in the case of the $109,400 amount in subparagraph (A)(i)(I) and the $70,300 amount in subparagraph (A)(i)(II), and ``(2) `calendar year 2025', in the case of the $1,000,000 amount in subparagraph (A)(ii)(I).''.”
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.”
- Title VII, Subtitle A, Section 70107: EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNTS AND MODIFICATION OF PHASEOUT THRESHOLDS (c)Income tax, individuals and businesses
Amends section 55(d)(4)(A)(ii) of the Internal Revenue Code of 1986.
“Section 55(d)(4)(A)(ii) is amended by striking ``and'' at the end of subclause (II), and by adding at the end the following new subclause: ``(IV) by substituting `50 percent' for `25 percent', and''.”
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.”
- Title VII, Subtitle A, Section 70108: EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION FOR QUALIFIED RESIDENCE INTEREST (a)Income tax, individuals and businesses
Amends section 163(h)(3)(F) of the Internal Revenue Code of 1986.
Old New 2018 Through 2025 Beginning After 2017 “Section 163(h)(3)(F) is amended-- (1) in clause (i)-- (A) by striking ``, and before January 1, 2026'', (B) by redesignating subclauses (III) and (IV) as subclauses (IV) and (V), respectively, (C) by striking ``subclause (III)'' in subclause (V), as so redesignated, and inserting ``subclause (IV)'', and (D) by inserting after subclause (II) the following new subclause: ``(III) Mortgage insurance premiums treated as interest.--Clause (iv) of subparagraph (E) shall not apply.'', (2) by striking clause (ii) and redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively, and (3) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''.”
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 70109: EXTENSION AND MODIFICATION OF LIMITATION ON CASUALTY LOSS DEDUCTION (a)Income tax, individuals and businesses
Amends section 165(h)(5) of the Internal Revenue Code of 1986.
Old New 2018 Through 2025 Beginning After 2017 “Section 165(h)(5) is amended-- (1) in subparagraph (A), by striking ``, and before January 1, 2026'', and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''.”
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 70109: EXTENSION AND MODIFICATION OF LIMITATION ON CASUALTY LOSS DEDUCTION (b)Income tax, individuals and businesses
Amends section 165(h)(5) of the Internal Revenue Code of 1986.
“Subparagraph (A) of section 165(h)(5), as amended by subsection (a), is further amended by striking ``(i)(5))'' and inserting ``(i)(5)) or a State declared disaster''. (2) Exception related to personal casualty gains.--”
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 70109: EXTENSION AND MODIFICATION OF LIMITATION ON CASUALTY LOSS DEDUCTION (b)Income tax, individuals and businesses
Amends section 165(h)(5)(B) of the Internal Revenue Code of 1986.
“Clause (i) of section 165(h)(5)(B) is amended by striking ``(as so defined)'' and inserting ``(as so defined) or a State declared disaster''. (3) State declared disaster.--”
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 70109: EXTENSION AND MODIFICATION OF LIMITATION ON CASUALTY LOSS DEDUCTION (b)Income tax, individuals and businesses
Amends section 165(h) of the Internal Revenue Code of 1986.
“Paragraph (5) of section 165(h) is amended by adding at the end the following new subparagraph: ``(C) State declared disaster.--For purposes of this paragraph-- ``(i) In general.--The term `State declared disaster' means, with respect to any State, any natural catastrophe (including any hurricane, tornado, storm, high water, wind-driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought), or, regardless of cause, any fire, flood, or explosion, in any part of the State, which in the determination of the Governor of such State (or the Mayor, in the case of the District of Columbia) and the Secretary causes damage of sufficient severity and”
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 70111: LIMITATION ON TAX BENEFIT OF ITEMIZED DEDUCTIONS (b)Income tax, individuals and businesses
Amends section 199A(e)(1) of the Internal Revenue Code of 1986.
“Section 199A(e)(1) is amended by inserting ``without regard to section 68 and'' after ``shall be computed''. (2) Patrons of specified agricultural and horticultural cooperatives.--”
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 70111: LIMITATION ON TAX BENEFIT OF ITEMIZED DEDUCTIONS (b)Income tax, individuals and businesses
Amends section 199A(g)(2)(B) of the Internal Revenue Code of 1986.
“Section 199A(g)(2)(B) is amended by inserting ``section 68 or'' after ``without regard to''.”
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 70112: EXTENSION AND MODIFICATION OF QUALIFIED TRANSPORTATION FRINGE BENEFITS (a)Income tax, individuals and businesses
Amends section 132(f) of the Internal Revenue Code of 1986.
“Section 132(f) is amended-- (1) by striking subparagraph (D) of paragraph (1), (2) in paragraph (2), by inserting ``and'' at the end of subparagraph (A), by striking ``, and'' at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C), (3) by striking ``(other than a qualified bicycle commuting reimbursement)'' in paragraph (4), (4) by striking subparagraph (F) of paragraph (5), and (5) by striking paragraph (8).”
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.”
- Title VII, Subtitle A, Section 70112: EXTENSION AND MODIFICATION OF QUALIFIED TRANSPORTATION FRINGE BENEFITS (b)Income tax, individuals and businesses
Amends section 132(f)(6)(A) of the Internal Revenue Code of 1986.
Old New 1998 1997 “Clause (ii) of section 132(f)(6)(A) is amended by striking ``1998'' in clause (ii) and inserting ``1997''.”
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.”
- Title VII, Subtitle A, Section 70112: EXTENSION AND MODIFICATION OF QUALIFIED TRANSPORTATION FRINGE BENEFITS (c)Income tax, individuals and businesses
Amends section 274 of the Internal Revenue Code of 1986.
“Subsection (l) of section 274 is amended-- (1) by striking ``Benefits.--'' and all that follows through ``No deduction'' and inserting ``Benefits.--No deduction'', and (2) by striking paragraph (2).”
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.”
- Title VII, Subtitle A, Section 70113: EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION AND EXCLUSION FOR MOVING EXPENSES (c)Income tax, individuals and businesses
Amends section 132(g)(2) of the Internal Revenue Code of 1986.
Old New 2018 Through 2025 Beginning After 2017 “Section 132(g)(2) is amended-- (1) by striking ``, and before January 1, 2026'', and (2) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''.”
Effective date, in the law’s words (subsection (e)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70113: EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION AND EXCLUSION FOR MOVING EXPENSES (d)Income tax, individuals and businesses
Amends section 132(g)(2) of the Internal Revenue Code of 1986.
“Section 132(g)(2) of the Internal Revenue Code of 1986 is amended by inserting ``, or an employee or new appointee of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003)) (other than a member of the Armed Forces of the United States) who moves pursuant to a change in assignment that requires relocation'' after ``change of station''.”
Effective date, in the law’s words (subsection (e)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70114: EXTENSION AND MODIFICATION OF LIMITATION ON WAGERING LOSSES (a)Income tax, individuals and businesses
Amends section 165 of the Internal Revenue Code of 1986.
“Section 165 is amended by striking subsection (d) and inserting the following: ``(d) Wagering Losses.-- ``(1) In general.--For purposes of losses from wagering transactions, the amount allowed as a deduction for any taxable year-- ``(A) shall be equal to 90 percent of the amount of such losses during such taxable year, and ``(B) shall be allowed only to the extent of the gains from such transactions during such taxable year. ``(2) Special rule.--For purposes of paragraph (1), the term `losses from wagering transactions' includes any deduction otherwise allowable under this chapter incurred in carrying on any wagering transaction.''.”
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 70115: EXTENSION AND ENHANCEMENT OF INCREASED LIMITATION ON CONTRIBUTIONS TO ABLE ACCOUNTS (a)Income tax, individuals and businesses
Amends section 529A(b)(2)(B) of the Internal Revenue Code of 1986.
“Section 529A(b)(2)(B) is amended-- (1) in clause (i), by inserting ``(determined by substituting `1996' for `1997' in paragraph (2)(B) thereof)'' after ``section 2503(b)'', and (2) in clause (ii), by striking ``before January 1, 2026''.”
Effective date, in the law’s words (subsection (b)): “(1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to contributions made after December 31, 2025. (2) Modified inflation adjustment.--The amendment made by subsection (a)(1) shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70117: EXTENSION OF ROLLOVERS FROM QUALIFIED TUITION PROGRAMS TO ABLE ACCOUNTS PERMITTED (a)Income tax, individuals and businesses
Amends section 529(c)(3)(C)(i)(III) of the Internal Revenue Code of 1986.
“Section 529(c)(3)(C)(i)(III) is amended by striking ``before January 1, 2026,''.”
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 70119: EXTENSION AND MODIFICATION OF EXCLUSION FROM GROSS INCOME OF STUDENT LOANS DISCHARGED ON ACCOUNT OF DEATH OR DISABILITY (a)Income tax, individuals and businesses
Amends section 108(f)(5) of the Internal Revenue Code of 1986.
“Section 108(f)(5) is amended to read as follows: ``(5) Discharges on account of death or disability.-- ``(A) In general.--In the case of an individual, gross income does not include any amount which (but for this subsection) would be includible in gross income for such taxable year by reason of the discharge (in whole or in part) of any loan described in subparagraph (B), if such discharge was-- ``(i) pursuant to subsection (a) or (d) of section 437 of the Higher Education Act of 1965 or the parallel benefit under part D of title IV of such Act (relating to the repayment of loan liability), ``(ii) pursuant to section 464(c)(1)(F) of such Act, or ``(iii) otherwise discharged on account of”
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 discharges after December 31, 2025.”
- Title VII, Subtitle A, Section 70120: LIMITATION ON INDIVIDUAL DEDUCTIONS FOR CERTAIN STATE AND LOCAL TAXES, ETC (a)Income tax, individuals and businesses
Amends section 164(b)(6) of the Internal Revenue Code of 1986.
Old New $10,000 ($5,000 in the case of a married individual filing a separate return) the applicable limitation amount (half the applicable limitation amount in the case of a married individual filing a separate return) “Section 164(b)(6) is amended-- (1) by striking ``and before January 1, 2026'', and (2) by striking ``$10,000 ($5,000 in the case of a married individual filing a separate return)'' and inserting ``the applicable limitation amount (half the applicable limitation amount in the case of a married individual filing a separate return)''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024. CHAPTER 2--DELIVERING ON PRESIDENTIAL PRIORITIES TO PROVIDE NEW MIDDLE- CLASS TAX RELIEF”
- Title VII, Subtitle A, Section 70120: LIMITATION ON INDIVIDUAL DEDUCTIONS FOR CERTAIN STATE AND LOCAL TAXES, ETC (b)Income tax, individuals and businesses
Amends section 164(b) of the Internal Revenue Code of 1986.
“Section 164(b) is amended by adding at the end the following new paragraph: ``(7) Applicable limitation amount.-- ``(A) In general.--For purposes of paragraph (6), the term `applicable limitation amount' means-- ``(i) in the case of any taxable year beginning in calendar year 2025, $40,000, ``(ii) in the case of any taxable year beginning in calendar year 2026, $40,400, ``(iii) in the case of any taxable year beginning after calendar year 2026 and before 2030, 101 percent of the dollar amount in effect under this subparagraph for taxable years beginning in the preceding calendar year, and ``(iv) in the case of any taxable year beginning after calendar year 2029, $10,000.”
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, 2024. CHAPTER 2--DELIVERING ON PRESIDENTIAL PRIORITIES TO PROVIDE NEW MIDDLE- CLASS TAX RELIEF”
- Title VII, Subtitle A, Section 70201: NO TAX ON TIPS (d)Income tax, individuals and businesses
Amends section 199A(c)(4) of the Internal Revenue Code of 1986.
“Section 199A(c)(4) is amended by striking ``and'' at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting ``, and'', and by adding at the end the following new subparagraph: ``(D) any amount with respect to which a deduction is allowable to the taxpayer under section 224(a) for the taxable year.''.”
Effective date, in the law’s words (subsection (j)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70201: NO TAX ON TIPS (e)Income tax, individuals and businesses
Amends section 45B(b)(2) of the Internal Revenue Code of 1986.
“Section 45B(b)(2) is amended to read as follows: ``(2) Application only to certain lines of business.--In applying paragraph (1) there shall be taken into account only tips received from customers or clients in connection with the following services: ``(A) The providing, delivering, or serving of food or beverages for consumption, if the tipping of employees delivering or serving food or beverages by customers is customary. ``(B) The providing of any of the following services to a customer or client if the tipping of employees providing such services is customary: ``(i) Barbering and hair care. ``(ii) Nail care. ``(iii) Esthetics. ``(iv) Body and spa treatments.''.”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (j)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70201: NO TAX ON TIPS (e)Income tax, individuals and businesses
Amends section 45B(b)(1)(B) of the Internal Revenue Code of 1986.
“Section 45B(b)(1)(B) is amended-- (A) by striking ``as in effect on January 1, 2007, and'', and (B) by inserting ``, and in the case of food or beverage establishments, as in effect on January 1, 2007'' after ``without regard to section 3(m) of such Act''.”
Effective date, in the law’s words (subsection (j)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70202: NO TAX ON OVERTIME (a)Income tax, individuals and businesses
Adds section 225 to the Internal Revenue Code of 1986: QUALIFIED OVERTIME COMPENSATION.
“Part VII of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by redesignating section 225 as section 226 and by inserting after section 224 the following new section: ``SEC. 225. QUALIFIED OVERTIME COMPENSATION. ``(a) In General.--There shall be allowed as a deduction an amount equal to the qualified overtime compensation received during the taxable year and included on statements furnished to the individual pursuant to section 6041(d)(4) or 6051(a)(19). ``(b) Limitation.-- ``(1) In general.--The amount allowed as a deduction under this section for any taxable year shall not exceed $12,500 ($25,000 in the case of a joint return).”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (g)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70203: NO TAX ON CAR LOAN INTEREST (a)Income tax, individuals and businesses
Amends section 163(h) of the Internal Revenue Code of 1986.
“Section 163(h) is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph: ``(4) Special rules for taxable years 2025 through 2028 relating to qualified passenger vehicle loan interest.-- ``(A) In general.--In the case of taxable years beginning after December 31, 2024, and before January 1, 2029, for purposes of this subsection the term `personal interest' shall not include qualified passenger vehicle loan interest.”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (e)): “The amendments made by this section shall apply to indebtedness incurred after December 31, 2024.”
- Title VII, Subtitle A, Section 70204: TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM (a)Income tax, individuals and businesses
Amends the Internal Revenue Code of 1986: Subchapter F of chapter 1.
“Subchapter F of chapter 1 is amended by adding at the end the following new part: ``PART IX-- TRUMP ACCOUNTS ``Sec. 530A. Trump accounts. ``SEC. 530A. TRUMP ACCOUNTS. ``(a) General Rule.--Except as provided in this section or under regulations or guidance established by the Secretary, a Trump account shall be treated for purposes of this title in the same manner as an individual retirement account under section 408(a). ``(b) Trump Account.--For purposes of this section-- ``(1) In general.--The term `Trump account' means an individual retirement account (as defined in section 408(a)) which is not designated as a Roth IRA and which meets the following requirements:”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (e)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70204: TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM (a)Income tax, individuals and businesses
Amends section 529A(b)(2)(B) of the Internal Revenue Code of 1986.
“Section 529A(b)(2)(B) is amended by inserting ``or received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B)'' after ``except as provided in the case of contributions under subsection (c)(1)(C)''. (B) Prohibition on excess contributions.--”
Effective date, in the law’s words (subsection (e)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70204: TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM (a)Income tax, individuals and businesses
Amends section 529A(b)(6) of the Internal Revenue Code of 1986.
“The second sentence of section 529A(b)(6) is amended by inserting ``but do not include any contributions received in a qualified ABLE rollover contribution described in section 530A(d)(4)(B)'' before the period at the end. (C) Conforming amendment.--”
Effective date, in the law’s words (subsection (e)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70204: TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM (b)Income tax, individuals and businesses
Adds section 128 to the Internal Revenue Code of 1986: EMPLOYER CONTRIBUTIONS TO TRUMP ACCOUNTS.
“Part III of subchapter B of chapter 1 is amended by inserting after section 127 the following new section: ``SEC. 128. EMPLOYER CONTRIBUTIONS TO TRUMP ACCOUNTS. ``(a) In General.--Gross income of an employee does not include amounts paid by the employer as a contribution to the Trump account of such employee or of any dependent of such employee if the amounts are paid or incurred pursuant to a program which is described in subsection (c). ``(b) Limitation.-- ``(1) In general.--The amount which may be excluded under subsection (a) with respect to any employee shall not exceed $2,500.”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (e)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70204: TRUMP ACCOUNTS AND CONTRIBUTION PILOT PROGRAM (c)Income tax, individuals and businesses
Adds section 139J to the Internal Revenue Code of 1986: CERTAIN CONTRIBUTIONS TO TRUMP ACCOUNTS.
“Part III of subchapter B of chapter 1 is amended by inserting before section 140 the following new section: ``SEC. 139J. CERTAIN CONTRIBUTIONS TO TRUMP ACCOUNTS. ``(a) In General.--Gross income of an account beneficiary shall not include any qualified general contribution to a Trump account of the account beneficiary. ``(b) Definitions.--Any term used in this section which is used in section 530A shall have the meaning given such term under section 530A.''. (2) Clerical amendment.--”
Effective date, in the law’s words (subsection (e)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70301: FULL EXPENSING FOR CERTAIN BUSINESS PROPERTY (a)Income tax, individuals and businesses
Amends section 168(k)(2)(A) of the Internal Revenue Code of 1986.
“Section 168(k)(2)(A) is amended by adding ``and'' at the end of clause (i), by striking ``, and'' at the end of clause (ii) and inserting a period, and by striking clause (iii). (2) Property with longer production periods.--”
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 property acquired after January 19, 2025. (2) Specified plants.--Except as provided in paragraph (3), in the case of any specified plant (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this section), the amendments made by this section shall apply to such plants” The quote stops here.
- Title VII, Subtitle A, Section 70301: FULL EXPENSING FOR CERTAIN BUSINESS PROPERTY (a)Income tax, individuals and businesses
Amends section 168(k)(2)(B) of the Internal Revenue Code of 1986.
“Section 168(k)(2)(B) is amended-- (A) in clause (i), by striking subclauses (II) and (III) and redesignating subclauses (IV), (V), and (VI), as subclauses (II), (III), and (IV), respectively, and (B) by striking clause (ii) and redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively. (3) Self-constructed property.--”
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 property acquired after January 19, 2025. (2) Specified plants.--Except as provided in paragraph (3), in the case of any specified plant (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this section), the amendments made by this section shall apply to such plants” The quote stops here.
- Title VII, Subtitle A, Section 70301: FULL EXPENSING FOR CERTAIN BUSINESS PROPERTY (a)Income tax, individuals and businesses
Amends section 168(k)(2)(E) of the Internal Revenue Code of 1986.
“Section 168(k)(2)(E) is amended by striking clause (i) and redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively. (4) Certain plants.--”
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 property acquired after January 19, 2025. (2) Specified plants.--Except as provided in paragraph (3), in the case of any specified plant (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this section), the amendments made by this section shall apply to such plants” The quote stops here.
- Title VII, Subtitle A, Section 70301: FULL EXPENSING FOR CERTAIN BUSINESS PROPERTY (a)Income tax, individuals and businesses
Amends section 168(k)(5)(A) of the Internal Revenue Code of 1986.
“Section 168(k)(5)(A) is amended by striking ``planted before January 1, 2027, or is grafted before such date to a plant that has already been planted,'' in the matter preceding clause (i) and inserting ``planted or grafted''. (5) Conforming amendments.-- (A)”
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 property acquired after January 19, 2025. (2) Specified plants.--Except as provided in paragraph (3), in the case of any specified plant (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this section), the amendments made by this section shall apply to such plants” The quote stops here.
- Title VII, Subtitle A, Section 70301: FULL EXPENSING FOR CERTAIN BUSINESS PROPERTY (a)Income tax, individuals and businesses
Amends section 168(k)(2)(A)(ii) of the Internal Revenue Code of 1986.
“Section 168(k)(2)(A)(ii) is amended by striking ``clause (ii) of subparagraph (E)'' and inserting ``clause (i) of subparagraph (E)''. (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 property acquired after January 19, 2025. (2) Specified plants.--Except as provided in paragraph (3), in the case of any specified plant (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this section), the amendments made by this section shall apply to such plants” The quote stops here.
- Title VII, Subtitle A, Section 70301: FULL EXPENSING FOR CERTAIN BUSINESS PROPERTY (a)Income tax, individuals and businesses
Amends section 168(k)(2)(C)(i) of the Internal Revenue Code of 1986.
“Section 168(k)(2)(C)(i) is amended by striking ``and subclauses (II) and (III) of subparagraph (B)(i)''. (C)”
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 property acquired after January 19, 2025. (2) Specified plants.--Except as provided in paragraph (3), in the case of any specified plant (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this section), the amendments made by this section shall apply to such plants” The quote stops here.
- Title VII, Subtitle A, Section 70301: FULL EXPENSING FOR CERTAIN BUSINESS PROPERTY (a)Income tax, individuals and businesses
Amends section 168(k)(2)(C)(ii) of the Internal Revenue Code of 1986.
“Section 168(k)(2)(C)(ii) is amended by striking ``subparagraph (B)(iii)'' and inserting ``subparagraph (B)(ii)''. (D)”
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 property acquired after January 19, 2025. (2) Specified plants.--Except as provided in paragraph (3), in the case of any specified plant (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this section), the amendments made by this section shall apply to such plants” The quote stops here.
- Title VII, Subtitle A, Section 70301: FULL EXPENSING FOR CERTAIN BUSINESS PROPERTY (a)Income tax, individuals and businesses
Amends section 460(c)(6)(B) of the Internal Revenue Code of 1986.
“Section 460(c)(6)(B) is amended by striking ``which'' and all that follows through the period and inserting ``which has a recovery period of 7 years or less.''. (b) 100 Percent Expensing.-- (1) In general.--”
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 property acquired after January 19, 2025. (2) Specified plants.--Except as provided in paragraph (3), in the case of any specified plant (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this section), the amendments made by this section shall apply to such plants” The quote stops here.
- Title VII, Subtitle A, Section 70301: FULL EXPENSING FOR CERTAIN BUSINESS PROPERTY (a)Income tax, individuals and businesses
Amends section 168(k) of the Internal Revenue Code of 1986.
Old New the applicable percentage 100 percent “Section 168(k) is amended-- (A) in paragraph (1)(A), by striking ``the applicable percentage'' and inserting ``100 percent'', and (B) by striking paragraphs (6) and (8). (2) Certain plants.--”
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 property acquired after January 19, 2025. (2) Specified plants.--Except as provided in paragraph (3), in the case of any specified plant (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this section), the amendments made by this section shall apply to such plants” The quote stops here.
- Title VII, Subtitle A, Section 70301: FULL EXPENSING FOR CERTAIN BUSINESS PROPERTY (a)Income tax, individuals and businesses
Amends section 168(k)(5)(A)(i) of the Internal Revenue Code of 1986.
Old New the applicable percentage 100 percent “Section 168(k)(5)(A)(i) is amended by striking ``the applicable percentage'' and inserting ``100 percent''. (3) Transitional election of reduced percentage.--”
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 property acquired after January 19, 2025. (2) Specified plants.--Except as provided in paragraph (3), in the case of any specified plant (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this section), the amendments made by this section shall apply to such plants” The quote stops here.
- Title VII, Subtitle A, Section 70301: FULL EXPENSING FOR CERTAIN BUSINESS PROPERTY (a)Income tax, individuals and businesses
Amends section 168(k)(10) of the Internal Revenue Code of 1986.
“Section 168(k)(10) is amended by striking subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting before subparagraph (C) (as so redesignated) the following new subparagraphs: ``(A) In general.--In the case of qualified property placed in service by the taxpayer during the first taxable year ending after January 19, 2025, if the taxpayer elects to have this paragraph apply for such taxable year, paragraph (1)(A) shall be applied-- ``(i) in the case of property which is not described in clause (ii), by substituting `40 percent' for `100 percent', or ``(ii) in the case of property which is described in subparagraph (B) or (C) of paragraph (2), by substituting”
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 property acquired after January 19, 2025. (2) Specified plants.--Except as provided in paragraph (3), in the case of any specified plant (as defined in section 168(k)(5)(B) of the Internal Revenue Code of 1986, as amended by this section), the amendments made by this section shall apply to such plants” The quote stops here.
- Title VII, Subtitle A, Section 70302: FULL EXPENSING OF DOMESTIC RESEARCH AND EXPERIMENTAL EXPENDITURES (a)Income tax, individuals and businesses
Adds section 174A to the Internal Revenue Code of 1986: DOMESTIC RESEARCH OR EXPERIMENTAL EXPENDITURES.
“Part VI of subchapter B of chapter 1 is amended by inserting after section 174 the following new section: ``SEC. 174A. DOMESTIC RESEARCH OR EXPERIMENTAL EXPENDITURES. ``(a) Treatment as Expenses.--Notwithstanding section 263, there shall be allowed as a deduction any domestic research or experimental expenditures which are paid or incurred by the taxpayer during the taxable year.”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (e)): “(1) In general.--Except as otherwise provided in this subsection or subsection (f)(1), the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2024.” The quote stops here.
- Title VII, Subtitle A, Section 70302: FULL EXPENSING OF DOMESTIC RESEARCH AND EXPERIMENTAL EXPENDITURES (b)Income tax, individuals and businesses
Amends section 174 of the Internal Revenue Code of 1986.
“Section 174 is amended-- (A) in subsection (a)-- (i) by striking ``a taxpayer's specified research or experimental expenditures'' and inserting ``a taxpayer's foreign research or experimental expenditures'', and (ii) by striking ``over the 5-year period (15- year period in the case of any specified research or experimental expenditures which are attributable to foreign research (within the meaning of section 41(d)(4)(F)))'' in paragraph (2)(B) and inserting ``over the 15-year period'', (B) in subsection (b)-- (i) by striking ``specified research'' and inserting ``foreign research'', (ii) by inserting ``and which are attributable to foreign research (within the meaning of section”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (e)): “(1) In general.--Except as otherwise provided in this subsection or subsection (f)(1), the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2024.” The quote stops here.
- Title VII, Subtitle A, Section 70302: FULL EXPENSING OF DOMESTIC RESEARCH AND EXPERIMENTAL EXPENDITURES (b)Income tax, individuals and businesses
Amends section 41(d)(1)(A) of the Internal Revenue Code of 1986.
“Section 41(d)(1)(A) is amended to read as follows: ``(A) with respect to which expenditures are treated as domestic research or experimental expenditures under section 174A,''. (B)”
Effective date, in the law’s words (subsection (e)): “(1) In general.--Except as otherwise provided in this subsection or subsection (f)(1), the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2024.” The quote stops here.
- Title VII, Subtitle A, Section 70302: FULL EXPENSING OF DOMESTIC RESEARCH AND EXPERIMENTAL EXPENDITURES (b)Income tax, individuals and businesses
Amends section 280C(c)(1) of the Internal Revenue Code of 1986.
“Section 280C(c)(1) is amended to read as follows: ``(1) In general.--The domestic research or experimental expenditures (as defined in section 174A(b)) otherwise taken into account as a deduction or charged to capital account under this chapter shall be reduced by the amount of the credit allowed under section 41(a).''. (3) AMT adjustment.--”
Effective date, in the law’s words (subsection (e)): “(1) In general.--Except as otherwise provided in this subsection or subsection (f)(1), the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2024.” The quote stops here.
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.