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.
Individual income tax: 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Each provision below is one sentence of the law that says a part of a federal tax law is amended or repealed.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 70101: EXTENSION AND ENHANCEMENT OF REDUCED RATES (a)Individual income tax
Amends section 1(j) of the Internal Revenue Code of 1986.
Old New 2018 Through 2025 Beginning After 2017 “Section 1(j) is amended-- (1) in paragraph (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 (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70101: EXTENSION AND ENHANCEMENT OF REDUCED RATES (b)Individual income tax
Amends section 1(j)(3)(B)(i) of the Internal Revenue Code of 1986.
“Section 1(j)(3)(B)(i) is amended by inserting ``solely for purposes of determining the dollar amounts at which any rate bracket higher than 12 percent ends and at which any rate bracket higher than 22 percent begins,'' before ``subsection (f)(3)''.”
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 70102: EXTENSION AND ENHANCEMENT OF INCREASED STANDARD DEDUCTION (a)Individual income tax
Amends section 63(c)(7) of the Internal Revenue Code of 1986.
Old New 2018 Through 2025 Beginning After 2017 “Section 63(c)(7) is amended-- (1) by striking ``, and before January 1, 2026'' in the matter preceding subparagraph (A), 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, 2024.”
- Title VII, Subtitle A, Section 70102: EXTENSION AND ENHANCEMENT OF INCREASED STANDARD DEDUCTION (b)Individual income tax
Amends section 63(c) of the Internal Revenue Code of 1986.
Old New $18,000 $23,625 $12,000 $15,750 2018 2025 2017 2024 “Paragraph (7) of section 63(c) is amended-- (1) by striking ``$18,000'' both places it appears in subparagraphs (A)(i) and (B)(ii) and inserting ``$23,625'', (2) by striking ``$12,000'' both places it appears in subparagraphs (A)(ii) and (B)(ii) and inserting ``$15,750'', (3) by striking ``2018'' in subparagraph (B)(ii) and inserting ``2025'', and (4) by striking ``2017'' in subparagraph (B)(ii)(II) and inserting ``2024''.”
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.”
- Title VII, Subtitle A, Section 70103: TERMINATION OF DEDUCTION FOR PERSONAL EXEMPTIONS OTHER THAN TEMPORARY SENIOR DEDUCTION (a)Individual income tax
Amends section 151(d)(5) of the Internal Revenue Code of 1986.
Old New 2018 through 2025 beginning after 2017 “Section 151(d)(5) is amended--. (1) by striking ``2018 through 2025'' in the heading and inserting ``beginning after 2017'', (2) by striking ``, and before January 1, 2026'', and (3) by adding at the end the following new subparagraph: ``(C) Deduction for seniors.-- ``(i) In general.-- In the case of a taxable year beginning before January 1, 2029, there shall be allowed a deduction in an amount equal to $6,000 for each qualified individual with respect to the taxpayer.”
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.”
- Title VII, Subtitle A, Section 70104: EXTENSION AND ENHANCEMENT OF INCREASED CHILD TAX CREDIT (a)Individual income tax
Amends section 24(h) of the Internal Revenue Code of 1986.
Old New $2,000 $2,200 2018 Through 2025 Beginning After 2017 “Section 24(h) is amended-- (1) in paragraph (1), by striking ``, and before January 1, 2026'', (2) in paragraph (2), by striking ``$2,000'' and inserting ``$2,200'', and (3) by striking ``2018 Through 2025'' in the heading and inserting ``Beginning After 2017''.”
Effective date, in the law’s words (subsection (f)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70104: EXTENSION AND ENHANCEMENT OF INCREASED CHILD TAX CREDIT (b)Individual income tax
Amends section 24(h)(7) of the Internal Revenue Code of 1986.
“Section 24(h)(7) is amended to read as follows: ``(7) Social security number required.-- ``(A) In general.--No credit shall be allowed under this section to a taxpayer with respect to any qualifying child unless the taxpayer includes on the return of tax for the taxable year-- ``(i) the taxpayer's social security number (or, in the case of a joint return, the social security number of at least 1 spouse), and ``(ii) the social security number of such qualifying child.”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (f)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70104: EXTENSION AND ENHANCEMENT OF INCREASED CHILD TAX CREDIT (c)Individual income tax
Amends section 24(i) of the Internal Revenue Code of 1986.
“Section 24(i) is amended to read as follows: ``(i) Inflation Adjustments.-- ``(1) Maximum amount of refundable credit.--In the case of a taxable year beginning after 2024, the $1,400 amount in subsection (h)(5) 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 `2017' for `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 (f)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2024.”
- Title VII, Subtitle A, Section 70110: TERMINATION OF MISCELLANEOUS ITEMIZED DEDUCTIONS OTHER THAN EDUCATOR EXPENSES (a)Individual income tax
Amends section 67(g) of the Internal Revenue Code of 1986.
Old New 2018 Through 2025 Beginning After 2017 “Section 67(g) 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 (c)): “The amendments made by this section shall apply to taxable years beginning after December 31, 2025.”
- Title VII, Subtitle A, Section 70110: TERMINATION OF MISCELLANEOUS ITEMIZED DEDUCTIONS OTHER THAN EDUCATOR EXPENSES (b)Individual income tax
Amends section 67(b) of the Internal Revenue Code of 1986.
“Section 67(b) is amended by striking ``and'' at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting ``, and'', and by adding at the end the following new paragraph: ``(13) the deductions allowed by section 162 for educator expenses (as defined in subsection (g)).''. (2) Inclusion of coaches and certain nonathletic instructional equipment.--”
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 70110: TERMINATION OF MISCELLANEOUS ITEMIZED DEDUCTIONS OTHER THAN EDUCATOR EXPENSES (b)Individual income tax
Amends section 67 of the Internal Revenue Code of 1986.
“Section 67 is amended by redesignating subsection (g), as amended by this section, as subsection (h), and by inserting after subsection (f) the following new section: ``(g) Educator Expenses.--For purposes of subsection (b)(13), the term `educator expenses' means expenses of a type which would be described in section 62(a)(2)(D) if-- ``(1) such section were applied-- ``(A) without regard to the dollar limitation, ``(B) without regard to `(other than nonathletic supplies for courses of instruction in health or physical education)' in clause (ii) thereof, and ``(C) by substituting `as part of instructional activity' for `in the classroom' in clause (ii) thereof, and ``(2) section 62(d)(1)(A)”
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 (a)Individual income tax
Amends section 68 of the Internal Revenue Code of 1986.
“Section 68 is amended to read as follows: ``(a) In General.--In the case of an individual, the amount of the itemized deductions otherwise allowable for the taxable year (determined without regard to this section) shall be reduced by \2/37\ of the lesser of-- ``(1) such amount of itemized deductions, or ``(2) so much of the taxable income of the taxpayer for the taxable year (determined without regard to this section and increased by such amount of itemized deductions) as exceeds the dollar amount at which the 37 percent rate bracket under section 1 begins with respect to the taxpayer.”
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 70113: EXTENSION AND MODIFICATION OF LIMITATION ON DEDUCTION AND EXCLUSION FOR MOVING EXPENSES (a)Individual income tax
Amends section 217(k) of the Internal Revenue Code of 1986.
Old New 2018 Through 2025 Beginning After 2017 “Section 217(k) 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 (b)Individual income tax
Amends section 217(k) of the Internal Revenue Code of 1986.
“Section 217(k), as amended by subsection (a), is further amended-- (1) by striking ``2017.--Except in the case'' and inserting ``2017.-- ``(1) In general.--Except in the case'', and (2) by adding at the end the following new paragraph: ``(2) Members of the intelligence community.--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 which requires relocation shall be treated for purposes of this section in the same manner as an individual to whom subsection (g) applies.''.”
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 70116: EXTENSION AND ENHANCEMENT OF SAVERS CREDIT ALLOWED FOR ABLE CONTRIBUTIONS (a)Individual income tax
Amends section 25B(d)(1) of the Internal Revenue Code of 1986.
“Section 25B(d)(1) is amended to read as follows: ``(1) In general.--The term `qualified retirement savings contributions' means, with respect to any taxable year, the sum of-- ``(A) the amount of contributions made by the eligible individual during such taxable year to the ABLE account (within the meaning of section 529A) of which such individual is the designated beneficiary, and ``(B) in the case of any taxable year beginning before January 1, 2027-- ``(i) the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual, ``(ii) the amount of-- ``(I) any elective deferrals (as defined in section 402(g)(3)) of such individual, and ``(II)”
The quote stops here. The law’s text has the rest.
- Title VII, Subtitle A, Section 70116: EXTENSION AND ENHANCEMENT OF SAVERS CREDIT ALLOWED FOR ABLE CONTRIBUTIONS (b)Individual income tax
Amends section 25B(a) of the Internal Revenue Code of 1986.
Old New $2,000 $2,100 “Section 25B(a) is amended by striking ``$2,000'' and inserting ``$2,100''. (2) Effective date.--The amendment made by this subsection shall apply to taxable years beginning after December 31, 2026.”
- Title VII, Subtitle A, Section 70201: NO TAX ON TIPS (a)Individual income tax
Adds section 224 to the Internal Revenue Code of 1986: QUALIFIED TIPS.
“Part VII of subchapter B of chapter 1 is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section: ``SEC. 224. QUALIFIED TIPS. ``(a) In General.--There shall be allowed as a deduction an amount equal to the qualified tips received during the taxable year that are included on statements furnished to the individual pursuant to section 6041(d)(3), 6041A(e)(3), 6050W(f)(2), or 6051(a)(18), or reported by the taxpayer on Form 4137 (or successor). ``(b) Limitation.-- ``(1) In general.--The amount allowed as a deduction under this section for any taxable year shall not exceed $25,000.”
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 (b)Individual income tax
Amends section 63(b) of the Internal Revenue Code of 1986.
“Section 63(b) is amended by striking ``and'' at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting ``, and'', and by adding at the end the following new paragraph: ``(5) the deduction provided in section 224.''.”
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 (b)Individual income tax
Amends section 63(b) of the Internal Revenue Code of 1986.
“Section 63(b), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting ``, and'', and by adding at the end the following new paragraph: ``(6) the deduction provided in section 225.''.”
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 (b)Individual income tax
Amends section 63(b) of the Internal Revenue Code of 1986.
“Section 63(b), as amended by the preceding provisions of this Act, is amended by striking ``and'' at the end of paragraph (5), by striking the period at the end of paragraph (6) and inserting ``and'', and by adding at the end the following new paragraph: ``(7) so much of the deduction allowed by section 163(a) as is attributable to the exception under section 163(h)(4)(A).''.”
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 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 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 70501: TERMINATION OF PREVIOUSLY-OWNED CLEAN VEHICLE CREDITIndividual income tax
Amends section 25E(g) of the Internal Revenue Code of 1986.
“Section 25E(g) is amended by striking ``December 31, 2032'' and inserting ``September 30, 2025''.”
- Title VII, Subtitle A, Section 70505: TERMINATION OF ENERGY EFFICIENT HOME IMPROVEMENT CREDIT (a)Individual income tax
Amends section 25C(h) of the Internal Revenue Code of 1986.
“Section 25C(h) is amended by striking ``placed in service'' and all that follows through ``December 31, 2032'' and inserting ``placed in service after December 31, 2025''.”
- Title VII, Subtitle A, Section 70506: TERMINATION OF RESIDENTIAL CLEAN ENERGY CREDIT (a)Individual income tax
Amends section 25D(h) of the Internal Revenue Code of 1986.
“Section 25D(h) is amended by striking ``to property placed in service after December 31, 2034'' and inserting ``with respect to any expenditures made after December 31, 2025''.”
- Title VII, Subtitle A, Section 70606: SOCIAL SECURITY NUMBER REQUIREMENT FOR AMERICAN OPPORTUNITY AND LIFETIME LEARNING CREDITS (a)Individual income tax
Amends section 25A(g)(1) of the Internal Revenue Code of 1986.
“Section 25A(g)(1) is amended to read as follows: ``(1) Identification requirement.-- ``(A) Social security number requirement.--No credit shall be allowed under subsection (a) to an individual unless the individual includes on the return of tax for the taxable year-- ``(i) such individual's social security number, and ``(ii) in the case of a credit with respect to the qualified tuition and related expenses of an individual other than the taxpayer or the taxpayer's spouse, the name and social security number of such individual.”
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 B, Section 71301: PERMITTING PREMIUM TAX CREDIT ONLY FOR CERTAIN INDIVIDUALS (a)Individual income tax
Amends section 36B(e)(1) of the Internal Revenue Code of 1986.
“Section 36B(e)(1) is amended by inserting ``or, in the case of aliens who are lawfully present, are not eligible aliens'' after ``individuals who are not lawfully present''.”
Effective date, in the law’s words (subsection (e)): “The amendments made by this section (other than the amendments made by subsection (c)) shall apply to taxable years beginning after December 31, 2026.”
- Title VII, Subtitle B, Section 71301: PERMITTING PREMIUM TAX CREDIT ONLY FOR CERTAIN INDIVIDUALS (b)Individual income tax
Amends section 36B(e)(2) of the Internal Revenue Code of 1986.
“Section 36B(e)(2) is amended-- (1) by striking ``For purposes of this section, an individual'' and inserting ``For purposes of this section-- ``(A) In general.--An individual'', and (2) by adding at the end the following new subparagraph: ``(B) Eligible aliens.--An individual who is an alien and lawfully present shall be treated as an eligible alien if such individual is, and is reasonably expected to be for the entire period of enrollment for which the credit under this section is being claimed-- ``(i) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act (8 U.S.C.”
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 (other than the amendments made by subsection (c)) shall apply to taxable years beginning after December 31, 2026.”
- Title VII, Subtitle B, Section 71302: DISALLOWING PREMIUM TAX CREDIT DURING PERIODS OF MEDICAID INELIGIBILITY DUE TO ALIEN STATUS (a)Individual income tax
Amends section 36B(c)(1) of the Internal Revenue Code of 1986.
“Section 36B(c)(1) is amended by striking subparagraph (B).”
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. Subchapter B--Preventing Waste, Fraud, and Abuse”
- Title VII, Subtitle B, Section 71303: REQUIRING VERIFICATION OF ELIGIBILITY FOR PREMIUM TAX CREDIT (a)Individual income tax
Amends section 36B(c) of the Internal Revenue Code of 1986.
“Section 36B(c) is amended by adding at the end the following new paragraphs: ``(5) Exchange enrollment verification requirement.-- ``(A) In general.--The term `coverage month' shall not include, with respect to any individual covered by a qualified health plan enrolled in through an Exchange, any month beginning before the Exchange verifies, using applicable enrollment information that shall be provided or verified by the applicant, such individual's eligibility-- ``(i) to enroll in the plan through the Exchange, and ``(ii) for any advance payment under section 1412 of the Patient Protection and Affordable Care Act of the credit allowed under this section.”
The quote stops here. The law’s text has the rest.
- Title VII, Subtitle B, Section 71303: REQUIRING VERIFICATION OF ELIGIBILITY FOR PREMIUM TAX CREDIT (b)Individual income tax
Amends section 36B(c)(3)(A) of the Internal Revenue Code of 1986.
“Section 36B(c)(3)(A) is amended-- (1) by striking ``health plan.--The term'' and inserting ``health plan.-- `` ``(i) In general.--The term'', and (2) by adding at the end the following new clause: ``(ii) Pre-enrollment verification process required.--Such term shall not include any plan enrolled in through an Exchange, unless such Exchange provides a process for pre-enrollment verification through which any applicant may, beginning not later than August 1, verify with the Exchange the applicant's household income and eligibility for enrollment in such plan for plan years beginning in the subsequent year.''. (c) Effective Date.”
The quote stops here. The law’s text has the rest.
- Title VII, Subtitle B, Section 71304: DISALLOWING PREMIUM TAX CREDIT IN CASE OF CERTAIN COVERAGE ENROLLED IN DURING SPECIAL ENROLLMENT PERIOD (a)Individual income tax
Amends section 36B(c)(3)(A) of the Internal Revenue Code of 1986.
“Section 36B(c)(3)(A), as amended by the preceding provisions of this Act, is amended by adding at the end the following new clause: ``(iii) Exception in case of certain special enrollment periods.--Such term shall not include any plan enrolled in during a special enrollment period provided for by an Exchange-- ``(I) on the basis of the relationship of the individual's expected household income to such a percentage of the poverty line (or such other amount) as is prescribed by the Secretary of Health and Human Services for purposes of such period, and ``(II) not in connection with the occurrence of an event or change in circumstances specified by the Secretary of Health and Human Services”
The quote stops here. The law’s text has the rest.
Effective date, in the law’s words (subsection (b)): “The amendments made by this section shall apply with respect to plan years beginning after December 31, 2025.”
- Title VII, Subtitle B, Section 71305: ELIMINATING LIMITATION ON RECAPTURE OF ADVANCE PAYMENT OF PREMIUM TAX CREDIT (a)Individual income tax
Amends section 36B(f)(2) of the Internal Revenue Code of 1986.
“Section 36B(f)(2) is amended by striking subparagraph (B).”
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. Subchapter C--Enhancing Choice for Patients”
- Title VII, Subtitle B, Section 71306: PERMANENT EXTENSION OF SAFE HARBOR FOR ABSENCE OF DEDUCTIBLE FOR TELEHEALTH SERVICES (a)Individual income tax
Amends section 223(c)(2) of the Internal Revenue Code of 1986.
“Subparagraph (E) of section 223(c)(2) is amended to read as follows: ``(E) Safe harbor for absence of deductible for telehealth.--A plan shall not fail to be treated as a high deductible health plan by reason of failing to have a deductible for telehealth and other remote care services.''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to plan years beginning after December 31, 2024.”
- Title VII, Subtitle B, Section 71306: PERMANENT EXTENSION OF SAFE HARBOR FOR ABSENCE OF DEDUCTIBLE FOR TELEHEALTH SERVICES (b)Individual income tax
Amends section 223(c)(1)(B) of the Internal Revenue Code of 1986.
“Clause (ii) of section 223(c)(1)(B) is amended by striking ``(in the case of months or plan years to which paragraph (2)(E) applies)''.”
Effective date, in the law’s words (subsection (c)): “The amendments made by this section shall apply to plan years beginning after December 31, 2024.”
- Title VII, Subtitle B, Section 71307: ALLOWANCE OF BRONZE AND CATASTROPHIC PLANS IN CONNECTION WITH HEALTH SAVINGS ACCOUNTS (a)Individual income tax
Amends section 223(c)(2) of the Internal Revenue Code of 1986.
“Section 223(c)(2) is amended by adding at the end the following new subparagraph: ``(H) Bronze and catastrophic plans treated as high deductible health plans.--The term `high deductible health plan' shall include any plan which is-- ``(i) available as individual coverage through an Exchange established under section 1311 or 1321 of the Patient Protection and Affordable Care Act, and ``(ii) described in subsection (d)(1)(A) or (e) of section 1302 of such Act.''.”
Effective date, in the law’s words (subsection (b)): “The amendment made by this section shall apply to months beginning after December 31, 2025.”
- Title VII, Subtitle B, Section 71308: TREATMENT OF DIRECT PRIMARY CARE SERVICE ARRANGEMENTS (a)Individual income tax
Amends section 223(c)(1) of the Internal Revenue Code of 1986.
“Section 223(c)(1) is amended by adding at the end the following new subparagraph: ``(E) Treatment of direct primary care service arrangements.-- ``(i) In general.--A direct primary care service arrangement shall not be treated as a health plan for purposes of subparagraph (A)(ii). ``(ii) Direct primary care service arrangement.--For purposes of this subparagraph-- ``(I) In general.--The term `direct primary care service arrangement' means, with respect to any individual, an arrangement under which such individual is provided medical care (as defined in section 213(d)) consisting solely of primary care services provided by primary care practitioners (as defined in section 1833(x)(2)(A) of”
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 months beginning after December 31, 2025. CHAPTER 4--PROTECTING RURAL HOSPITALS AND PROVIDERS”
- Title VII, Subtitle B, Section 71308: TREATMENT OF DIRECT PRIMARY CARE SERVICE ARRANGEMENTS (b)Individual income tax
Amends section 223(d)(2)(C) of the Internal Revenue Code of 1986.
“Section 223(d)(2)(C) is amended by striking ``or'' at the end of clause (iii), by striking the period at the end of clause (iv) and inserting ``, or'', and by adding at the end the following new clause: ``(v) any direct primary care service arrangement.''.”
Effective date, in the law’s words (subsection (d)): “The amendments made by this section shall apply to months beginning after December 31, 2025. CHAPTER 4--PROTECTING RURAL HOSPITALS AND PROVIDERS”
- Title VII, Subtitle B, Section 71308: TREATMENT OF DIRECT PRIMARY CARE SERVICE ARRANGEMENTS (c)Individual income tax
Amends section 223(g)(1) of the Internal Revenue Code of 1986.
“Section 223(g)(1) is amended-- (1) by striking ``in subsections (b)(2) and (c)(2)(A)'' and inserting ``in subsections (b)(2), (c)(2)(A), and in the case of taxable years beginning after 2026, (c)(1)(E)(ii)(II)'', (2) in subparagraph (B), by striking ``clause (ii)'' in clause (i) and inserting ``clauses (ii) and (iii)'', by striking ``and'' at the end of clause (i), by striking the period at the end of clause (ii) and inserting ``, and'', and by inserting after clause (ii) the following new clause: ``(iii) in the case of the dollar amount in subsection (c)(1)(E)(ii)(II), `calendar year 2025'.'', and (3) by inserting ``, (c)(1)(E)(ii)(II),'' after ``(b)(2)'' in the last sentence.”
Effective date, in the law’s words (subsection (d)): “The amendments made by this section shall apply to months beginning after December 31, 2025. CHAPTER 4--PROTECTING RURAL HOSPITALS AND PROVIDERS”
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.