Tax season usually feels like a headache, but lately, it’s been more of a guessing game. You’ve probably heard the chatter around the water cooler or seen the frantic headlines about a "massive tax hike" looming on the horizon. Most people are asking one simple thing: when does Trump’s tax plan end?
The short answer used to be December 31, 2025. That was the "sunset" date written into the original 2017 Tax Cuts and Jobs Act (TCJA). But honestly, things just got a whole lot more complicated.
The July 2025 Plot Twist: The One Big Beautiful Bill Act
If you were planning for your taxes to revert to 2017 levels next year, you can toss that plan out the window. On July 4, 2025, the landscape shifted. President Trump signed the One Big Beautiful Bill Act (OBBBA), which basically took the expiring parts of the old tax plan and made them permanent.
It was a dramatic move. A 51-50 Senate vote with Vice President JD Vance breaking the tie.
So, when we talk about "when the plan ends," we aren't really looking at a total expiration anymore. Instead, we’re looking at a transition into a permanent structure with a few specific "bonus" features that do have an expiration date.
What stayed, what went, and what’s permanent
Most of the individual income tax rates that were supposed to jump back up in 2026 are now here to stay. That 37% top bracket? It didn't go back to 39.6%. The 12% and 22% brackets? Still there.
The IRS already released the 2026 adjustments under this new law. For the 2026 tax year (the ones you'll file in early 2027), the standard deduction is actually going up again.
- Married filing jointly: $32,200
- Single filers: $16,100
- Head of household: $24,150
This is a huge relief for people who were worried the standard deduction would be sliced in half. Under the old sunset rules, that married deduction would have cratered to around $16,000.
The Parts That Actually Do End (The Real Deadlines)
While the "meat and potatoes" of the tax cuts are now permanent, some specific provisions are on a timer. If you’re a senior or someone working a lot of overtime, listen up. This is where the "end" actually happens.
The 2028 Sunset for New Credits
The OBBBA introduced some shiny new toys to the tax code, but they aren't forever. Specifically, the "No Tax on Tips" and "No Tax on Overtime" provisions are currently scheduled to expire at the end of 2028.
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Think of it as a trial run. The administration is essentially saying, "Let’s see how this affects the deficit and the labor market for three years." If Congress doesn't act by the time Trump’s second term ends, these perks vanish.
Senior Deduction Expiration
There’s also a new $6,000 deduction for individuals aged 65 and older. It’s a nice bump, but it’s also pegged to that 2028 expiration date. If you’re counting on that for your long-term retirement math, keep a close eye on the 2028 elections.
Business Taxes: A Different Story
Businesses actually got the better end of the deal long ago. While individual cuts were temporary in the 2017 plan, the 21% corporate tax rate was already permanent.
However, some business perks were phasing out. For instance, "bonus depreciation"—which lets businesses deduct the full cost of equipment immediately—was supposed to be gone by now. The 2025 law brought it back to life. It’s now 100% permanent.
The Qualified Business Income (QBI) deduction, often called the "Section 199A" deduction, was one of the biggest question marks for small business owners. This allows sole proprietors and S-corp owners to deduct up to 20% of their business income. This was set to die in 2025. It is now permanent.
The SALT Cap: The $10,000 Headache
One of the most hated parts of the 2017 plan was the $10,000 limit on State and Local Tax (SALT) deductions. If you live in a high-tax state like New York, California, or New Jersey, you know exactly what I’m talking about.
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Under the original plan, this cap was supposed to disappear entirely in 2026, allowing people to deduct all their state taxes again. The OBBBA didn't let that happen. Instead, it raised the cap to $40,000 for 2025 and set it to $40,400 for 2026.
It’s better than $10,000, but it’s not the "unlimited" deduction people in blue states were hoping for. And yes, this new cap is also permanent, with small 1% increases scheduled through 2029.
Why Some People Still See a Tax Hike
Wait, if the plan didn't end, why is my neighbor saying their taxes are going up?
Nuance matters here. While the rates stayed low, the Alternative Minimum Tax (AMT) phaseout thresholds were tweaked. For 2026, the AMT exemption for singles is $90,100, but it starts phasing out at $500,000 of income. In 2025, that phaseout didn't start until $625,350.
Basically, if you’re making "upper-middle-class" money (the $500k to $700k range), you might actually hit the AMT trap more easily in 2026 than you did in 2025. It’s a subtle "stealth tax" that helps pay for the other cuts.
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The Estate Tax: Wealth Transfer is Still Cheap
The 2017 plan doubled the amount of money you can pass to your heirs tax-free. Many feared this would revert to the old $5 million level.
Instead, the 2025 law made the higher limits permanent. For 2026, the basic exclusion is a whopping $15 million per person. That’s $30 million for a married couple. If your estate is worth less than that, the IRS isn't taking a cent of it when you pass away.
Actionable Steps for the 2026 Transition
Since the rules of the game just changed, you shouldn't just "wait and see." Here is how you should handle your money right now:
- Review your W-4: With the new "No Tax on Overtime" and "No Tax on Tips" rules, your withholding might be way off. Don't let the government hold onto your money interest-free. Adjust your W-4 so your take-home pay reflects the new exemptions.
- Small Business Owners, Breathe: Since the QBI deduction is permanent, you don't need to rush to restructure your business. However, with bonus depreciation back at 100%, 2026 is a great year to invest in new equipment or technology.
- Senior Strategy: If you're over 65, make sure you're claiming that extra $6,000 deduction. It’s separate from the standard deduction. If you don't check the box, you don't get the cash.
- Watch the Deficit: Economists from groups like the Penn Wharton Budget Model are pointing out that making these cuts permanent could add $4.6 trillion to the national debt over the next decade. This matters because it could lead to higher interest rates or future "emergency" tax hikes down the road.
The "end" of the Trump tax plan wasn't a cliff; it was a bridge. Most of the floor you're standing on has been reinforced, but the specific "extras" are only guaranteed for the next few years. Start planning for 2028 now, because that’s the next time the tax code is going to have a mid-life crisis.