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Trump TCJA Renewal 2026: Made Permanent, No Sunset

The TCJA renewal question is settled. The One Big Beautiful Bill Act (Public Law 119-21), signed July 4, 2025, made the TCJA individual brackets permanent, so nothing sunset at the end of 2025. Below: actual 2026 law (IRS Rev. Proc. 2025-32) compared with the pre-TCJA rules that would have returned, plus the SALT cap, QBI deduction, estate exemption, AMT, and Child Tax Credit.

Reviewed: September 17, 2026 by Ines Calloway · Sources: One Big Beautiful Bill Act (Pub. L. 119-21), IRS Rev. Proc. 2025-32 (2026 inflation adjustments), IRS guidance on One Big Beautiful Bill provisions.

2026 single-filer brackets: actual law vs the sunset that did not happen

Bracket2026 law (OBBBA)Pre-TCJA rate (sunset scenario)2026 threshold (single)
110%10%$0 - $12,400
212%15%$12,400 - $50,400
322%25%$50,400 - $105,700
424%28%$105,700 - $201,775
532%33%$201,775 - $256,225
635%35%$256,225 - $640,600
737%39.6%Above $640,600

Thresholds are the actual 2026 single-filer amounts from Rev. Proc. 2025-32. The sunset column shows rates only; pre-TCJA brackets used different income thresholds, so the rates do not line up with these dollar ranges. Other 2026 amounts: standard deduction $16,100 single / $32,200 married filing jointly / $24,150 head of household; Child Tax Credit $2,200 per child; SALT cap $40,400.

Frequently asked questions

What is the status of TCJA renewal for 2026?

It is settled law, not a pending bill. The One Big Beautiful Bill Act (OBBBA, Public Law 119-21) was signed on July 4, 2025. It made the Tax Cuts and Jobs Act individual rate structure permanent, so the scheduled sunset after December 31, 2025 never took effect. For tax year 2026 the IRS published the inflation-adjusted brackets, standard deduction, and other amounts in Rev. Proc. 2025-32. There is no House or Senate vote pending on TCJA renewal and no "dual" set of 2026 forms.

How would tax brackets have changed if TCJA had sunset?

Without an extension, the pre-TCJA rate schedule would have returned in 2026: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%, with different (generally lower) income thresholds, a standard deduction roughly half its current size, and personal exemptions restored. That did not happen. Actual 2026 law keeps the seven rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For single filers in 2026: 10% up to $12,400; 12% to $50,400; 22% to $105,700; 24% to $201,775; 32% to $256,225; 35% to $640,600; 37% above. For married filing jointly: 10% up to $24,800; 12% to $100,800; 22% to $211,400; 24% to $403,550; 32% to $512,450; 35% to $768,700; 37% above. The 2026 standard deduction is $16,100 single, $32,200 married filing jointly, and $24,150 head of household (Rev. Proc. 2025-32). Personal exemptions remain at $0.

What happened to the SALT cap?

A full TCJA sunset would have removed the $10,000 cap on the state and local tax (SALT) deduction. Instead, OBBBA raised the cap to $40,000 for 2025 and $40,400 for 2026 ($20,200 if married filing separately). The higher cap is reduced by 30% of modified AGI above $500,000 for 2025 and $505,000 for 2026, but not below $10,000. The cap rises 1% a year through 2029 and returns to $10,000 in 2030. State pass-through entity tax (PTET) elections remain available.

Did the Section 199A QBI deduction sunset?

No. OBBBA made the 20% qualified business income deduction under Section 199A permanent. For 2026 the threshold amount is $201,750 ($403,500 married filing jointly), and the phase-in range was widened to $75,000 ($150,000 joint), so limitations are fully phased in at $276,750 ($553,500 joint). Starting in 2026, taxpayers with at least $1,000 of QBI from an active trade or business get a minimum deduction of $400. Under a sunset, the deduction would have disappeared entirely after 2025.

How did the estate and gift tax exemption change?

A sunset would have cut the basic exclusion amount roughly in half. Instead, OBBBA set the basic exclusion amount at $15,000,000 per person for 2026, indexed for inflation after 2026 (Rev. Proc. 2025-32). Married couples can still use portability. The annual gift tax exclusion for 2026 is $19,000 per recipient. The 40% top estate tax rate is unchanged.

What about the Child Tax Credit?

If TCJA had sunset, the credit would have dropped to $1,000 per child with phase-outs starting at $75,000 (single) and $110,000 (married filing jointly). Under OBBBA the credit is $2,200 per qualifying child for 2025 and 2026, indexed for inflation after 2025, with up to $1,700 refundable for 2026 (Rev. Proc. 2025-32). The phase-out thresholds of $200,000 ($400,000 married filing jointly) are permanent, and the $500 credit for other dependents also continues.

What else changed for 2026 tax planning?

OBBBA also added temporary deductions for 2025 through 2028: up to $25,000 for qualified tips, up to $12,500 ($25,000 married filing jointly) for qualified overtime premium pay, up to $10,000 of interest on a qualifying new personal-use vehicle loan, and an extra $6,000 deduction for taxpayers age 65 and older, each with income-based phase-outs. The AMT exemption for 2026 is $90,100 single and $140,200 married filing jointly, with phase-outs starting at $500,000 and $1,000,000. The new clean vehicle and used clean vehicle credits ended for vehicles acquired after September 30, 2025. Because there is no sunset, there is no reason to accelerate income into 2025 or plan around a reversion to pre-TCJA rates.

How do state taxes interact with the OBBBA changes?

Each state decides whether and when to conform to federal changes. States that start their calculation from federal taxable income may be affected by federal deduction changes, while states that start from federal AGI are usually less affected by itemized and standard deduction changes. State income tax rates and brackets are set by state law, not by OBBBA. Check your state Department of Revenue guidance on OBBBA conformity for tax year 2026.

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