TCJA Sunset 2026 Calculator

The Tax Cuts and Jobs Act of 2017 made temporary changes to individual income tax rules that were set to expire December 31, 2026. Had they expired, brackets would have reverted to higher pre-TCJA rates, the standard deduction would have roughly halved, personal exemptions would have returned (~$5,300/person), the SALT cap would have lapsed, the AMT exemption would have dropped, the QBI deduction would have ended, and the child tax credit would have fallen from $2,000 to $1,000. It did not happen: OBBBA (signed July 2025) made the TCJA individual provisions permanent.

Yes. The One Big Beautiful Bill Act (OBBBA), signed in July 2025, made the TCJA individual income-tax provisions permanent rather than letting them expire at the end of 2026. The brackets, the larger standard deduction, the higher child tax credit, and the QBI deduction continue under current law; this calculator now uses the pre-TCJA scenario only as a what-if comparison.

Not for the reason people once did. The sunset urgency - taking income before a 2027 rate increase - is gone now that OBBBA made the current rates permanent. Roth conversions, gain harvesting in the 0% LTCG bracket, and deduction timing can still make sense based on your own bracket trajectory, but they are no longer driven by a looming expiration. Run scenarios on your specifics before committing.

Estate planning is a separate matter from the income-tax provisions modeled here. OBBBA (July 2025) made the higher estate and gift exemption permanent and raised it to about $15M per person for 2026, so the feared drop to ~$7M never took effect. The income-tax provisions are a distinct question affecting all taxpayers.