Individual Tax Rates |
Lower rates from TCJA set to expire after 2025, reverting to higher pre- 2018 rates |
Lower rates made permanent for tax years after 2025; expiration date removed. |
Permanently lower tax rates for individuals, preventing a tax increase after 2025 |
Standard Deduction |
Increased standard deduction was temporary, expiring after 2025, with lower amounts. |
Increased standard deduction made permanent and further increased, effective after 2024. |
Higher standard deduction, reducing taxable income for most filers |
Termination of Personal Exemption( except for Seniors) |
Personal exemptions suspended for 2018-2025; set to return after 2025. |
Personal exemptions remain terminated, but a new $ 6,000 deduction is allowed, per eligible individual, for seniors 65 + through 2028, phased out at higher incomes. |
Effectively removes tax on social security income for a large subset of the population. |
SALT Deduction Cap |
Capped at $ 10,000($ 5,000 MFS) through 2025 |
Cap increased to $ 40,000($ 20,000 MFS) for 2025, with phase-down for high incomes, reverting to $ 10,000 after 2029 |
Higher cap for most, but phases down for high earners and reverts after 2029 |
Child Tax Credit |
Expanded child tax credit($ 2,000, refundable up to $ 1,400) was set to expire after 2025. |
Expanded credit made permanent, increased to $ 2,200, with inflation adjustments |
Larger, permanent child tax credit |