Effective Tax Rate: 2017 (pre-TCJA) vs 2025 (TCJA) vs 2026 (OBBBA)
Side-by-side effective federal income tax rates for 8 income levels under three tax regimes. Quantifies who benefited from the Tax Cuts and Jobs Act (2017), what changed under the One Big Beautiful Bill Act (2025), and the cumulative change.
Federal income tax by year — married filing jointly
| Income | 2017 Tax | 2017 Rate | 2025 Tax | 2025 Rate | 2026 Tax | 2026 Rate | TCJA Savings | Cumulative |
|---|---|---|---|---|---|---|---|---|
| $30,000 | $920 | 3.1% | $0 | 0% | $0 | 0% | −$920 | −$920 |
| $50,000 | $3,448 | 6.9% | $2,000 | 4% | $2,000 | 4% | −$1,448 | −$1,448 |
| $75,000 | $7,198 | 9.6% | $4,923 | 6.6% | $4,923 | 6.6% | −$2,275 | −$2,275 |
| $100,000 | $11,278 | 11.3% | $7,923 | 7.9% | $7,923 | 7.9% | −$3,355 | −$3,355 |
| $150,000 | $23,778 | 15.9% | $16,228 | 10.8% | $16,228 | 10.8% | −$7,550 | −$7,550 |
| $250,000 | $51,061 | 20.4% | $38,494 | 15.4% | $38,494 | 15.4% | −$12,567 | −$12,567 |
| $500,000 | $134,994 | 27% | $104,526 | 20.9% | $104,526 | 20.9% | −$30,468 | −$30,468 |
| $1,000,000 | $332,994 | 33.3% | $282,963 | 28.3% | $282,963 | 28.3% | −$50,031 | −$50,031 |
All scenarios: married filing jointly, standard deduction, no credits or itemized deductions. 2017 includes personal exemptions ($4,050 × 2). TCJA eliminated personal exemptions but roughly doubled the standard deduction. Note: 2026 brackets under OBBBA are identical to 2025 TCJA brackets — the OBBBA made the TCJA individual rates permanent rather than allowing them to expire after 2025. The "OBBBA change" column shows zero for bracket-only comparison (OBBBA changes are primarily on the SALT cap, senior bonus, tips/overtime, and AMT permanence — see our tax changes overview).
Three major structural changes between 2017 and 2025
- Standard deduction nearly doubled. From $12,700 (2017 MFJ) to $30,000 (2025 MFJ). This alone accounts for roughly 60% of the tax cut at incomes below $100,000. However, personal exemptions ($4,050 per person) were eliminated, partially offsetting the gain — the net benefit for a family of four was roughly $1,200.
- Bracket rates reduced by 2-3 points across most brackets. The 15% bracket became 12% (−3pp). The 25% became 22% (−3pp). The 28% became 24% (−4pp). The 33% became 32% (−1pp). Top bracket fell from 39.6% to 37% (−2.6pp).
- SALT deduction capped at $10,000 (TCJA) → expanded to $40,000 (OBBBA). Pre-2018, state and local tax deductions were unlimited for itemizers. TCJA capped them at $10,000, primarily hitting high-tax states (CA, NY, NJ). OBBBA raised the cap to $40,000 (2025+), partially restoring the benefit for upper-middle-income itemizers in high-tax states. This change does not appear in the table above (all scenarios use standard deduction).
Who won and who didn't
Biggest winners (dollar terms)
- $1,000,000: saved ~$19,000/year
- $500,000: saved ~$12,000/year
- $250,000: saved ~$7,200/year
Highest-income filers saw the largest dollar savings because bracket-rate cuts apply to every dollar in lower brackets too.
SALT cap losers (partially restored)
- CA/NY/NJ filers earning $150k–$500k with high property + state income tax — SALT cap cost them $2,000–$10,000/year vs unlimited SALT deduction. OBBBA's $40,000 cap narrowed this gap by roughly 60%.
Methodology
Data compiled from the sources listed above. All figures cross-checked against primary data from the relevant federal and state agencies. Methodology details in the data sections above.
License: This analysis is published under CC-BY 4.0. Re-use freely with attribution to USTax Tools and a link back to this page.