Key Provisions Scheduled to Expire After 2025
Under current law, many of the TCJA’s individual tax provisions are scheduled to sunset at the end of 2025. If Congress does not extend or modify them, the tax code will largely revert to pre‑2018 rules beginning in 2026.
Income Tax Rates
The TCJA lowered the seven individual income tax brackets to 10%, 12%, 22%, 24%, 32%, 35%, and 37%. If these provisions expire as scheduled, rates will revert to their pre‑TCJA structure, including a top marginal rate of 39.6%.
Standard Deduction
The TCJA nearly doubled the standard deduction and eliminated the personal exemption. For 2025, the inflation‑adjusted standard deduction is $13,850 for single filers and $27,700 for married couples filing jointly. If the TCJA provisions expire, the standard deduction would be reduced and personal exemptions would return, increasing taxable income for many households.
Child Tax Credit (CTC)
The TCJA increased the Child Tax Credit to $2,000 per qualifying child and expanded income eligibility. Without legislative action, the credit is scheduled to revert to $1,000 per child with more restrictive phase‑out rules.
State and Local Tax (SALT) Deduction Cap
The TCJA imposed a $10,000 cap on the itemized deduction for state and local taxes. This cap is also scheduled to expire after 2025, which would restore the full deductibility of eligible state and local taxes unless Congress enacts a replacement limit.
What Has Not Changed
Several TCJA provisions were made permanent and are not affected by the 2025 sunset, including:
- The reduction of the corporate income tax rate to 21%
- The repeal of the corporate alternative minimum tax (AMT)
- Changes to international taxation and business expense rules (though some have already been modified in subsequent legislation)
Legislative Outlook and Uncertainty
As of early 2026, Congress has not enacted a comprehensive, permanent extension of the expiring TCJA individual provisions. Multiple proposals have been introduced, ranging from full extensions to targeted renewals focused on middle‑income households, families with children, or specific deductions such as SALT.
Extending all expiring provisions would significantly reduce federal revenue over time, while allowing them to expire would result in higher taxes for many taxpayers beginning in 2026. Policymakers continue to debate how to balance fiscal concerns, economic growth, and distributional effects across income levels.
Conclusion
The original TCJA sunset schedule remains the baseline under current law, meaning many individual tax benefits are still set to expire unless Congress acts. As a result, individuals and businesses should closely monitor legislative developments and consider proactive tax planning strategies. Consulting with a qualified tax professional can help taxpayers prepare for potential changes and adjust their financial plans accordingly.