If you’ve been waiting for your tax bill to suddenly skyrocket or plummet because of some "expiration date" you heard about on the news, you aren't alone. Honestly, tax law in this country feels like a moving target. We’re currently in 2026, and the big question everyone is asking is: Are we still under the Trump tax plan?
The short answer? Mostly, yes. But it’s complicated.
Back in 2017, the Tax Cuts and Jobs Act (TCJA) was signed into law. It was a massive overhaul. However, because of some quirky Senate rules, most of the juicy stuff for individuals—like lower tax brackets and that big standard deduction—was technically supposed to vanish at the end of 2025. People were calling it the "tax cliff."
Well, we didn't go over the cliff. In July 2025, Congress passed what they called the One Big Beautiful Bill Act (OBBBA). Basically, this new law took the parts of the Trump tax plan that were about to expire and made most of them permanent. So, if you're looking at your 2026 paycheck, it probably looks a lot like your 2025 paycheck, at least in terms of federal withholding.
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The "Permanent" Reality of the Trump Tax Plan
For a long time, the 21% corporate tax rate was the only "forever" part of the original 2017 plan. Everything else was on a timer. But the 2025 legislation changed the game.
Right now, the seven individual income tax brackets remain exactly where they were under the TCJA. We’re still looking at rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%. If the OBBBA hadn't passed, that top rate would have jumped back up to 39.6% this year.
The Standard Deduction also survived. For the 2026 tax year, it has actually increased due to inflation adjustments.
- Married Filing Jointly: $32,200
- Single Filers: $16,100
- Head of Household: $24,150
It’s almost double what it was before 2017. This means most people still won't bother with itemizing their deductions. It’s just easier to take the flat amount and move on.
What Actually Changed (The Stuff You’ll Notice)
Even though the "core" of the plan stayed, it wouldn't be Washington without a few tweaks. The most dramatic shift for 2026 is actually the SALT deduction.
For years, people in high-tax states like New York or California were limited to a $10,000 cap on deducting their state and local taxes. It was a huge pain point. Under the new rules that kicked in for 2025 and continue through 2029, that cap has been raised to **$40,000**. It’s a massive win for homeowners in those areas, though it's still technically temporary. It’s scheduled to drop back to $10,000 in 2030, but that's a problem for "future us."
There are also some weird, hyper-specific new perks. For instance:
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- No Tax on Tips and Overtime: This was a huge campaign promise that actually made it into the 2025 law. If you work a job with tips or heavy overtime, you can now deduct a significant chunk of that income (up to $12,500 for overtime) if your total income is under certain limits.
- Car Loan Interest: You can now deduct up to $10,000 in interest on loans for cars assembled in the U.S.
- The "Trump Account": This is a new one. For kids born between 2025 and 2028, the government puts a one-time $1,000 deposit into a tax-advantaged savings account. It’s sort of like a kickstart for a college fund or retirement.
Small Businesses and the "Pass-Through" Win
If you're a freelancer, a contractor, or a small business owner, the Section 199A deduction was probably your favorite part of the 2017 law. It allowed you to deduct 20% of your qualified business income (QBI) right off the top.
This was one of the big items set to expire. Fortunately for the self-employed, the 2025 Act made this permanent. This is huge because it keeps the effective tax rate for many small businesses significantly lower than the standard individual rates. Without this extension, millions of "pass-through" entities would have seen a massive tax hike starting this month.
The Estate Tax: A Huge Leap for 2026
This won't affect everyone, but for those it does, the shift is staggering. The amount of money you can pass on to your heirs tax-free—the estate tax exemption—was already high. In 2026, it has been bumped up to **$15 million per individual** ($30 million for married couples).
Before the TCJA, this was around $5 million. The 2017 law doubled it, and the 2025 law increased it even further and made it permanent. It basically means that unless you’re genuinely wealthy, the "death tax" is something you’ll likely never have to worry about.
Why Some People Still Feel a Pinch
If the rates are the same and some deductions are better, why is anyone complaining?
Well, "bracket creep" is a real thing. Even though the IRS adjusts the brackets for inflation (up about 2.7% for 2026), if your wages grew faster than that, you might find yourself in a higher tax bracket than you were a few years ago.
Also, some of the "green" incentives from the previous administration were chopped. The federal EV tax credit? Gone. Certain home energy credits? Phased out. If you were counting on the government to subsidize your new Tesla or solar panels, the math looks a lot different in 2026 than it did in 2024.
Actionable Steps for Your 2026 Taxes
- Check your SALT: If you live in a high-tax state, talk to your CPA about that $40,000 cap. It might finally make sense to itemize again instead of taking the standard deduction.
- Track your Overtime: If you're an hourly worker, keep meticulous records of your overtime pay. The new $12,500 deduction is a "use it or lose it" situation on your return.
- Review your "Pass-Through" status: Since the 20% QBI deduction is now permanent, you don't need to rush to convert your LLC into a C-Corp. The tax benefit for small businesses is here to stay.
- American-Made Cars: If you’re shopping for a vehicle, check where it was assembled. That interest deduction only applies to U.S.-assembled cars, which could save you a few thousand dollars over the life of the loan.
The 2017 Trump tax plan isn't just "still around"—it has essentially become the permanent foundation of the American tax code. While the names of the bills have changed, the low-rate, high-deduction environment is the reality for the foreseeable future. Keeping an eye on the specific income thresholds for the new 2026 credits is the best way to make sure you aren't leaving money on the table when you file next year.