Lower Tax Rates Made Permanent Under the One Big Beautiful Bill Act
July 9, 2025
The Tax Cuts and Jobs Act (TCJA), enacted in 2017, significantly lowered federal income tax rates across the board for individual and trust taxpayers. These reduced tax rates were scheduled to expire after December 31, 2025, and without further legislative action would have reverted to the less favorable, pre-2017 rates. Under the recently enacted One Big Beautiful Bill Act (OBBBA), the lower TCJA-era tax rates have been made permanent for individual and trust taxpayers.
The table below compares (1) the TCJA tax rates that were made permanent under the OBBBA and (2) the tax rates that would have applied had the OBBBA not been enacted.
|
Category |
TCJA Tax Rates (Made Permanent By OBBBA) |
Post TCJA (No New Law) *Income thresholds are projected based on pre-TCJA amounts, adjusted for inflation |
|
Tax Rates – Married Filing Jointly |
10% $0 - $23,850 12% $23,851 - $96,950 22% $96,951 - $206,700 24% $206,701 to $394,600 32% $394,601 - $501,050 35% $501,051 - $751,600 37% $751,601+ *Indexed annually for inflation under the OBBBA |
10% $0 - $24,400 15% $24,401 - $99,200 25% $99,201 - $200,100 28% $200,101 - $304,950 33% $304,951 - $544,550 35% $544,551 - $615,100 39.6% $615,101+ |
|
Tax Rates - Single |
10% $0 - $11,925 12% $11,926 - $48,475 22% $48,476 to $103,350 24% $103,351 - $197,300 32% $197,301 - $250,525 35% $250,526 - $626,350 37% $626,351+ *Indexed annually for inflation under the OBBBA |
10% $0 - $12,150 15% $12,151 - $49,425 25% $49,426 - $105,375 28% $105,376 - $201,150 33% $201,151 - $275,000 35% $275,001 - $575,000 39.6% $575,001+ |
|
Tax Rates – Head of Household |
10% $0 - $17,000 12% $17,001 - $64,850 22% $64,851 - $103,350 24% $103,351 - $197,300 32% $197,301 - $250,525 35% $250,526 - $626,350 37% $626,351+ *Indexed annually for inflation under the OBBBA |
10% $0 - $13,350 15% $13,351 - $50,800 25% $50,801 - $131,200 28% $131,201 - $212,500 33% $212,501 - $416,700 35% $416,701 - $444,550 39.6% $444,551+ |
|
Tax Rates – Married Filing Separate |
10% $0 - $11,800 12% $11,801 - $47,150 22% $47,151 - $100,525 24% $100,526 - $191,950 32% $191,951 - $243,725 35% $243,726 - $365,600 37% $365,601+ *Indexed annually for inflation under the OBBBA |
10% $0 - $11,800 15% $11,801 - $46,950 25% $46,951 - $95,900 28% $95,901 - $146,050 33% $146,051 - $260,600 35% $260,601 - $311,600 39.6% $311,601+ |
|
Tax Rates – Trusts |
10% $0 - $3,100 24% $3,101 - $11,150 35% $11,151 - $14,450 37% $14,451+ *Indexed annually for inflation under the OBBBA |
15% $0 - $3,100 25% $3,101 - $7,900 28% $7,901 - $12,300 33% $12,301 - $15,400 35% $15,401 - $23.450 39.6% $23,451+ |
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Craig is a Tax Partner at Larson & Company. He specializes in tax planning and preparation for individuals, small-to-medium sized businesses, and captive insurance companies.
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