At the stroke of midnight December 31, 2025, nearly every American will experience a tsunami of tax changes, tax professionals warn.
Major provisions in the Tax Cuts and Jobs Act of 2017 (TCJA) expire then unless Congress extends them. If the TCJA provisions sunset, most everyone will be affected one way or another, they said. Tax brackets, income tax rates, child tax credit, state and local tax deductions, mortgage interest deductions and much more will literally change overnight.
The potential changes sound far away, but tax experts say people need to be aware and consider steps now to ensure they don’t face a host of tax surprises.
“It’s going to be the Super Bowl of tax law changes in less than 18 months,” said Mark Steber, chief tax information officer at tax preparer Jackson Hewitt. Changes in deductions and credits will affect people differently, but Steber said everyone’s “tax rates will be higher. That’s inarguable.”
Why are tax rates going up in 2026?
TCJA, which was initiated by President Donald Trump, lowered tax rates across the board and shifted the thresholds for several income tax brackets. Some people saw a bigger reduction than others but pretty much everyone gained at least a little, tax experts said.
Protect your assets: Best high-yield savings accounts of 2023
For example, a married couple whose total income minus deductions is $250,000 would have had a 33% tax rate in 2017, but only 24% in 2024. An individual making $39,000 in taxable income…
