No, the tax cuts are not expiring in 2026, and that is the direct answer many older articles still get wrong. The 2017 Tax Cuts and Jobs Act (TCJA) individual provisions were scheduled to sunset after December 31, 2025, but the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, made most of them permanent before the deadline arrived.
The TCJA individual tax cuts did not expire. OBBBA (Public Law 119-21, enacted July 4, 2025) made the seven-bracket rate structure (10% to 37%) and the higher standard deduction permanent from 2026 onward. The 2026 standard deduction is $32,200 for married filing jointly and $16,100 for single filers. (Source: IRS Rev. Proc. 2025-32; CRS report R48611)
Are tax cuts expiring in 2026? The short answer
The tax cuts are not expiring in 2026. The individual rate cuts and higher standard deduction from the 2017 TCJA were set to lapse after December 31, 2025, but the One Big Beautiful Bill Act made them permanent when it was enacted as Public Law 119-21 on July 4, 2025. There is no scheduled rate reversion for 2026 under current law. (Source: CRS report R48611)
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This matters because much of the search results on this question is stale. Several widely cited pages still frame the 2026 expiration as a live threat and do not mention OBBBA at all. As of mid-2026, that framing is out of date. The specific pre-2018 brackets (which topped out at 39.6%) do not return.
What does deserve attention is a different set of deadlines. Several brand-new OBBBA deductions are temporary and are scheduled to expire after 2028, and the expanded SALT cap is scheduled to reset in 2030. Those deadlines remain relevant under current law and are covered in detail below.
What the One Big Beautiful Bill Act changed on July 4, 2025
OBBBA locked in the core TCJA individual tax structure permanently. According to Congressional Research Service report R48611, the law was “enacted into law on July 4, 2025,” and its sections made the reduced individual rates, the larger standard deduction, and the suspension of personal exemptions permanent rather than letting them expire at the end of 2025. (Source: CRS R48611)
The three load-bearing changes, as summarized by CRS, are these:
- Section 70101 makes permanent the individual income tax rates the TCJA instituted (10/12/22/24/32/35/37%) from 2026 onward.
- Section 70102 makes permanent the TCJA increase to the standard deduction.
- Section 70103 makes permanent the TCJA suspension of personal exemptions, keeping the personal exemption at $0.
OBBBA also raised the child tax credit, made the Section 199A pass-through deduction permanent, set a higher permanent estate and gift exemption, temporarily expanded the SALT cap, and created several new temporary deductions. Each is detailed in its own section below. (Source: CRS R48611; IRS Rev. Proc. 2025-32)
The multi-trillion-dollar tax increase that was averted
Letting the TCJA individual provisions expire would have produced a scheduled tax increase estimated in the multiple trillions of dollars over a decade, spread across most income levels. OBBBA prevented that automatic increase from taking effect in 2026 by making the reduced rates and higher standard deduction permanent. (Source: CRS R48611)
A simplified illustration shows the cliff that was avoided. Consider a married couple filing jointly with $120,000 of taxable income in 2026. Under the permanent OBBBA brackets, their top dollars are taxed at 22%. Had the pre-TCJA structure returned, comparable income would have faced a higher marginal rate, and the standard deduction would have been substantially smaller, exposing more income to tax. The combined effect of a higher rate on more income is what “expiration” would have meant in practice. (Source: IRS Rev. Proc. 2025-32; CRS R48611)
This is a general illustration, not a calculation for any specific household. Actual results depend on filing status, deductions, credits, and other income, and may differ.
2026 tax brackets: rates stay 10% to 37%
The 2026 federal income tax brackets keep the seven-rate TCJA structure, topping out at 37% rather than reverting to the pre-2018 top rate of 39.6%. The IRS published the inflation-adjusted 2026 thresholds in Revenue Procedure 2025-32, reflecting the permanence set by OBBBA. (Source: IRS Rev. Proc. 2025-32)
| Rate | Single (taxable income) | Married filing jointly |
|---|---|---|
| 10% | Up to $12,400 | Up to $24,800 |
| 12% | Over $12,400 | Over $24,800 |
| 22% | Over $50,400 | Over $100,800 |
| 24% | Over $105,700 | Over $211,400 |
| 32% | Over $201,775 | Over $403,550 |
| 35% | Over $256,225 | Over $512,450 |
| 37% | Over $640,600 | Over $768,700 |
Because these brackets are now permanent, the once-common planning argument that rates would jump on January 1, 2026 is no longer accurate under current law. That change affects how some households think about the timing of income, as discussed in the Roth conversion note below. (Source: IRS Rev. Proc. 2025-32; CRS R48611)
What is the standard deduction for 2026?
The 2026 standard deduction is $16,100 for single filers and married filing separately, $32,200 for married filing jointly, and $24,150 for head of household. These amounts are permanent and inflation-indexed under OBBBA. Had the TCJA lapsed, the deduction would have fallen substantially for every filing status. (Source: IRS Rev. Proc. 2025-32)
| Filing status | 2026 standard deduction |
|---|---|
| Single | $16,100 |
| Married filing separately | $16,100 |
| Head of household | $24,150 |
| Married filing jointly | $32,200 |
The personal exemption remains $0 in 2026 because OBBBA made the TCJA suspension permanent. The higher standard deduction was designed in part to offset the loss of personal exemptions. (Source: CRS R48611; IRS Rev. Proc. 2025-32)
Child tax credit, QBI, and the estate exemption in 2026
OBBBA raised or preserved several major provisions that were scheduled to shrink. The child tax credit was set at $2,200 per qualifying child (indexed for inflation thereafter), and the higher phaseout thresholds of $200,000 (single) and $400,000 (married filing jointly) were made permanent rather than reverting to their lower pre-TCJA levels. (Source: CRS R48611; IRS Rev. Proc. 2025-32)
QBI / Section 199A pass-through deduction
The 20% qualified business income (QBI) deduction under Section 199A is available in 2026 and was made permanent by OBBBA, rather than expiring after 2025. This deduction generally applies to eligible pass-through business income, subject to income-based phase-out thresholds that are adjusted annually. Owners of partnerships, S corporations, and sole proprietorships may continue to claim it depending on their circumstances. (Source: CRS R48611)
Estate and gift tax exemption
The federal estate and gift tax basic exclusion is $15,000,000 per decedent for 2026, up from the substantially lower level that would have applied had the TCJA individual provisions lapsed. OBBBA set the $15 million figure and provides for indexing going forward. Q3 Advisors covers this topic in more depth on the dedicated estate tax exemption 2026 page. (Source: IRS Rev. Proc. 2025-32)
When does the SALT cap deduction expire? The 2030 cliff
The state and local tax (SALT) deduction cap was raised from $10,000 to $40,000 ($20,000 for married filing separately) beginning in 2025 under OBBBA, with annual increases scheduled for tax years 2026 through 2029. It is then scheduled to reset permanently to $10,000 beginning in tax year 2030. For higher earners, the expanded cap is reduced (but not below $10,000) for modified AGI over $500,000 ($250,000 for married filing separately). (Source: IRS Schedule A instructions, i1040sca; CRS R48611)
This is one of the real cliffs that stale expiration articles miss. Households in high-tax states that benefit from the larger cap between now and 2029 face a scheduled return to the $10,000 limit in 2030 under current law. The timing of deductible payments and income may look different in the years around that reset, depending on individual circumstances. (Source: CRS R48611)
New temporary OBBBA deductions that expire after 2028
OBBBA created four new individual deductions that apply for tax years 2025 through 2028 and are scheduled to expire after that. These cover certain tips, overtime, a senior deduction, and car loan interest, each with its own dollar cap and income phaseout. Because they are temporary, they represent the next set of deadlines to watch rather than permanent features of the code. (Source: IRS, “One, Big, Beautiful Bill Act: Tax deductions for working Americans and seniors”)
| Deduction | Maximum amount | Phaseout begins (single / joint) | Years |
|---|---|---|---|
| Senior deduction (age 65+) | $6,000 per eligible individual | $75,000 / $150,000 | 2025-2028 |
| No tax on tips | Up to $25,000 | $150,000 / $300,000 | 2025-2028 |
| No tax on overtime | Up to $12,500 single / $25,000 joint | $150,000 / $300,000 | 2025-2028 |
| Car loan interest | Up to $10,000 | $100,000 / $200,000 | 2025-2028 |
The car loan interest deduction carries extra conditions: the vehicle must have final assembly in the United States and must be new, meaning original use begins with the taxpayer. Each deduction phases out above the income thresholds shown, and eligibility depends on individual circumstances. (Source: IRS, “One, Big, Beautiful Bill Act: Tax deductions for working Americans and seniors”)
Which tax breaks are gone in 2026?
Even though OBBBA made most TCJA individual provisions permanent, some earlier deductions did not return. The personal exemption stays at $0, the deduction for most moving expenses remains suspended, and miscellaneous itemized deductions subject to the 2% floor remain unavailable. These were TCJA changes that OBBBA made permanent rather than reversed. (Source: CRS R48611)
- Personal exemption: permanently $0, offset by the higher standard deduction. (Source: CRS R48611)
- Moving-expense deduction: remains suspended for most taxpayers (a narrow exception applies to certain armed forces members). (Source: CRS R48611)
- Miscellaneous itemized deductions: those subject to the 2% adjusted-gross-income floor remain unavailable. (Source: CRS R48611)
- EV charger credit: under OBBBA, the alternative fuel vehicle refueling property credit is scheduled to end for property placed in service after June 30, 2026. (Source: IRS, Alternative Fuel Vehicle Refueling Property Credit, irs.gov)
AMT and itemized deduction changes for 2026
The alternative minimum tax (AMT) exemption for 2026 is $90,100 for unmarried filers and $140,200 for married filing jointly, as published in Revenue Procedure 2025-32. The higher TCJA-era AMT exemption structure continues to keep the AMT from reaching as many households as it did before 2018. (Source: IRS Rev. Proc. 2025-32)
On itemized deductions, the older Pease limitation stays repealed and OBBBA made that repeal permanent. In its place, OBBBA imposes a new limitation that caps the tax benefit of itemized deductions for taxpayers in the top 37% bracket. High earners who itemize may see a reduced benefit from those deductions depending on their circumstances. (Source: IRS Rev. Proc. 2025-32; CRS R48611)
How permanent brackets change Roth conversion timing
Because OBBBA locked in the 10/12/22/24/32/35/37% brackets permanently for 2026 and beyond, the specific urgency to complete a Roth conversion before rates supposedly jumped on January 1, 2026 is removed under current law. Roth conversions can still have valid planning rationales, such as managing future legislative risk, required minimum distributions, and Medicare IRMAA exposure, but the “brackets are about to rise” driver is no longer accurate. This is educational information, not a recommendation.
Work with Q3 Advisors
Q3 Advisors is a registered investment adviser focused on retirement tax planning. This article is educational and is not advice; for guidance on your own circumstances, consult a qualified tax or financial professional.
Frequently asked questions
Short answers to the most common questions about whether the 2017 tax cuts expire in 2026, what the One Big Beautiful Bill Act changed, the 2026 standard deduction and brackets, the estate exemption, the SALT cap, and which deductions are gone. Each answer reflects the law and published IRS figures as of mid-2026.
Are the Trump tax cuts expiring in 2026?
No. The 2017 TCJA individual tax cuts were scheduled to expire after December 31, 2025, but the One Big Beautiful Bill Act, signed July 4, 2025, made most of them permanent. The reduced individual rates and the higher standard deduction continue in 2026 with no scheduled reversion under current law. (Source: CRS R48611)
Did the Tax Cuts and Jobs Act expire?
No. The TCJA individual provisions did not expire at the end of 2025. OBBBA (Public Law 119-21) made the seven-bracket rate structure, the higher standard deduction, and the suspension of personal exemptions permanent from 2026 onward. Some TCJA-era suspensions, such as the moving-expense deduction, were also made permanent. (Source: CRS R48611)
What tax changes take effect in 2026?
For 2026, the IRS published inflation-adjusted brackets, a standard deduction of $16,100 single and $32,200 joint, an AMT exemption of $90,100 unmarried and $140,200 joint, and a $15,000,000 estate exclusion. New OBBBA deductions for tips, overtime, seniors, and car loan interest also apply through 2028. (Source: IRS Rev. Proc. 2025-32)
What is the standard deduction for 2026?
The 2026 standard deduction is $16,100 for single filers and married filing separately, $24,150 for head of household, and $32,200 for married filing jointly. These amounts are permanent and inflation-indexed under OBBBA, and the personal exemption remains $0. The higher deduction, made permanent by OBBBA, was designed in part to offset the removal of personal exemptions. (Source: IRS Rev. Proc. 2025-32)
Will my taxes go up in 2026?
The scheduled across-the-board increase from a TCJA expiration will not occur, because OBBBA made the lower rates permanent. Whether an individual household pays more or less depends on income, deductions, credits, and eligibility for new temporary deductions. Any change varies by circumstances, so this is general information rather than advice. (Source: CRS R48611)
What did the One Big Beautiful Bill Act change?
OBBBA made the TCJA individual rates and higher standard deduction permanent, raised the child tax credit to $2,200, made the 20% QBI deduction permanent, set a $15,000,000 estate exclusion, temporarily raised the SALT cap to $40,000, and added temporary deductions for tips, overtime, seniors, and car loan interest through 2028. (Source: CRS R48611; IRS Rev. Proc. 2025-32)
Is the 20% QBI deduction still available in 2026?
Yes. The Section 199A qualified business income deduction of up to 20% is available in 2026 and was made permanent by OBBBA rather than expiring after 2025. It generally applies to eligible pass-through income, subject to income-based phase-out thresholds that adjust annually and depend on the taxpayer’s circumstances. (Source: CRS R48611)
When does the SALT cap deduction expire?
The expanded SALT cap of $40,000 applies for 2025 with annual increases through 2029, then resets permanently to $10,000 beginning in tax year 2030 under current law. For modified AGI over $500,000, the expanded cap is reduced but not below $10,000. (Source: IRS Schedule A instructions, i1040sca; CRS R48611)
What is the estate tax exemption for 2026?
The federal estate and gift tax basic exclusion is $15,000,000 per decedent for 2026. OBBBA set this figure and provides for indexing, replacing the substantially lower level that would have applied had the TCJA individual provisions lapsed. (Source: IRS Rev. Proc. 2025-32)
Which tax breaks are gone in 2026?
The personal exemption remains $0, the moving-expense deduction stays suspended for most taxpayers, and miscellaneous itemized deductions subject to the 2% floor remain unavailable. Separately, the EV charger credit is scheduled to end for property placed in service after June 30, 2026. (Source: CRS R48611; IRS, Alternative Fuel Vehicle Refueling Property Credit)
Sources
CRS report R48611, “Tax Provisions in P.L. 119-21, the FY2025 Reconciliation Law,” everycrsreport.com/reports/R48611.html.
IRS, “IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill” (Rev. Proc. 2025-32), irs.gov/newsroom.
IRS, “One, Big, Beautiful Bill Act: Tax deductions for working Americans and seniors,” irs.gov/newsroom.
IRS, 2025 Instructions for Schedule A (Form 1040), irs.gov/instructions/i1040sca.
IRS, “Alternative Fuel Vehicle Refueling Property Credit,” irs.gov/credits-deductions/alternative-fuel-vehicle-refueling-property-credit.
IRS, “401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500” (Notice 2025-67), irs.gov/newsroom.
