Compare your income tax across three tax eras: pre-TCJA 2017 (39.6% top rate), TCJA 2023 (37% top rate), and OBBBA 2026 ($16,100 standard deduction). See exactly how much you've saved.
The Three Tax Eras Explained
Era 1: Pre-TCJA (2017)
Before the Tax Cuts and Jobs Act, the tax code had 7 brackets topping at 39.6%. The standard deduction was only $6,350 for single filers, but a $4,050 personal exemption partially offset this. Middle-income earners faced a 25% marginal rate starting at $37,950 of taxable income.
Era 2: TCJA (2018β2025)
TCJA dramatically reshaped the code: top rate fell to 37%, the 25% bracket became 22%, and the standard deduction nearly doubled to $12,000 (growing to $15,000 by 2025). Personal exemptions were eliminated. Most households saw meaningful tax cuts. These provisions were scheduled to expire after 2025.
Era 3: OBBBA (2026+)
The One Big Beautiful Bill Act made TCJA permanent and enhanced it further. The standard deduction increased to $16,100 single / $32,200 MFJ for 2026 with enhanced inflation adjustments going forward. This prevents the large automatic tax increase that would have occurred if TCJA had expired.
Frequently Asked Questions
What changed with the Tax Cuts and Jobs Act (TCJA) in 2018?
The TCJA, effective January 1 2018, made sweeping changes: it lowered the top rate from 39.6% to 37%, reduced most other rates (e.g. 25% became 22%, 15% became 12%), nearly doubled the standard deduction from $6,350 to $12,000 for single filers, and eliminated personal exemptions. These changes were set to expire ("sunset") after 2025, but OBBBA 2026 made the lower rates permanent.
What is the OBBBA and how does it change 2026 taxes?
The One Big Beautiful Bill Act (OBBBA) signed in 2025 extended and enhanced the TCJA provisions permanently. For 2026 it increases the standard deduction to $16,100 for single filers and $32,200 for married filing jointly β a further boost from the $15,000/$30,000 under late-TCJA. The tax brackets also received an enhanced inflation adjustment. Without OBBBA, taxpayers would have faced an estimated $4,000β$8,000 annual tax increase in 2026.
Why was there a personal exemption in 2017 but not 2023 or 2026?
The $4,050 personal exemption per person existed under pre-TCJA law. Each taxpayer (and each dependent) could claim this deduction. The TCJA eliminated personal exemptions entirely starting in 2018, but offset this by nearly doubling the standard deduction and expanding the Child Tax Credit. For large families, the tradeoff was often neutral or even beneficial; for small households, the higher standard deduction more than compensated.
How does the savings from 2017 to 2026 get calculated?
The calculator computes tax under 2017 law (pre-TCJA brackets, $6,350 standard deduction, $4,050 personal exemption) vs 2026 OBBBA law (current brackets, $16,100 standard deduction, no personal exemption). The difference shows your nominal tax savings. Note: incomes and wages generally grew over this period, so your actual 2017 income may have been lower β but comparing at the same income shows the pure policy impact.
Are these the actual tax brackets for every year from 2017 to 2026?
The calculator uses representative years: 2017 (pre-TCJA final year), 2023 (mid-TCJA, adjusted for inflation), and 2026 (OBBBA). Exact brackets varied each year due to annual inflation adjustments. The key structural changes happened in 2018 (TCJA took effect) and 2026 (OBBBA enhanced provisions). For any specific year's exact brackets, consult IRS Publication 17 for that year.