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If you’re staring at your paycheck wondering why the numbers don't quite look like they used to, you aren't alone. Honestly, the tax code has been a chaotic mess of "temporary" fixes and "sunset" clauses for years. Everyone kept saying the 2017 rules would vanish at the end of 2025, but that's not exactly what happened. So, are we still under trump tax laws right now?
The short answer: Yes, and then some.
But it’s not just the old 2017 rules hanging around like an uninvited guest. In July 2025, a massive piece of legislation called the One Big Beautiful Bill Act (OBBBA) was signed into law. This basically took the core of the 2017 Tax Cuts and Jobs Act (TCJA)—which was supposed to expire—and made it permanent. Then, it added a bunch of new layers on top.
The Expiration That Never Came
Back in the day, the 2017 tax law was written with a "use it or lose it" timer. Because of how it passed through Congress, the individual income tax cuts were scheduled to self-destruct on December 31, 2025. If that had happened, we would have seen tax rates jump back up, the standard deduction get cut in half, and the child tax credit drop like a rock.
That didn't happen.
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Instead, the OBBBA locked those lower rates in. If you were worried about your tax bracket jumping from 12% back to 15% or the top rate hitting 39.6% again, you can breathe a bit easier. Those 2017 brackets are now the permanent law of the land.
Standard Deductions Are Bigger (Again)
One of the biggest questions people ask when wondering if are we still under trump tax rules is about the standard deduction. The 2017 law nearly doubled it, which simplified things for millions of people who stopped itemizing.
For the 2026 tax year, it’s not just staying high—it’s actually gone up again to account for inflation. For single filers, you’re looking at $16,100. If you’re married and filing jointly, that number jumps to $32,200.
The New "Senior Bonus"
If you’re 65 or older, there’s a new twist that wasn't in the original 2017 bill. There is now an additional $6,000 deduction for seniors. It starts to phase out if you make over $75,000 as a single person, but for a lot of retirees, this is a massive win that stacks on top of the already high standard deduction.
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What’s Actually New in 2026?
It isn't just a copy-paste of the old law. Some of the weirdest and most specific changes just kicked in this year.
- No Tax on Tips: This was a huge talking point during the 2024 campaign, and it’s now a reality. You can deduct up to $25,000 in tips from your federal income tax. Just keep in mind, you still owe state and local taxes on that money.
- Overtime is Shielded: Similar to tips, there’s a new deduction for overtime pay. You can shield up to $12,500 of your overtime earnings.
- The Car Loan Perk: This is a strange one. You can now deduct up to $10,000 in interest on a car loan, but only if the car was assembled in the U.S. and you use it for personal stuff.
The SALT Cap Drama
If you live in a high-tax state like California, New Jersey, or New York, the $10,000 cap on State and Local Tax (SALT) deductions has been a thorn in your side since 2018.
The new law actually threw a bone to the middle class here. The SALT cap was raised to $40,000 for people making under $500,000. It’s a huge relief for homeowners who were getting crushed, but it’s a temporary fix—it’s scheduled to drop back down to $10,000 after 2029.
Why Your Refund Might Feel Different
Even though we're "still" under these tax rules, your refund might not look the same as last year. The IRS has been aggressively phasing out paper checks. If you haven't set up direct deposit, you might be waiting a while.
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Also, the Child Tax Credit (CTC) got a small bump. It’s now $2,200 per child, and for the first time, it’s actually indexed for inflation. So while we are technically under a continuation of the Trump-era policies, the specific dollar amounts are drifting upward every year.
Actionable Steps for 2026
Since the rules are now "permanent" (well, as permanent as anything in D.C. ever is), you should change how you plan.
Adjust Your Withholding Immediately
If you work a lot of overtime or earn tips, you might be overpaying the government every month. Check with your HR department and update your W-4. There’s no point in giving the IRS an interest-free loan on money that is now tax-exempt.
Review Your Vehicle Purchases
If you’re in the market for a new car, check where it’s assembled. That $10,000 interest deduction only applies to U.S.-assembled vehicles. It could make a "more expensive" American car actually cheaper than a foreign competitor once you factor in the tax break.
Revisit Itemizing
With the SALT cap at $40,000 and the new charitable deduction for non-itemizers ($1,000 for singles), the math has changed. You might find that for the first time in years, itemizing actually saves you more money than taking the standard deduction.
The bottom line is that the "tax cliff" everyone feared at the end of 2025 was avoided. We are essentially living in "Trump Tax 2.0"—a permanent version of the 2017 law with some extra deductions for seniors, hourly workers, and service staff baked in. Keep your receipts, track your overtime, and make sure your direct deposit info is current with the IRS.