Quick Answer
Key expiring provisions include 100% bonus depreciation (phasing down 20% annually through 2027), full R&D expense deduction (already expired), and the TCJA individual provisions will sunset after 2028 unless extended again. The $10,000 SALT cap also expires after 2028.
Best Answer
Michelle Woodard, Tax Policy Analyst
Individual taxpayers concerned about upcoming changes to personal tax benefits
Major tax provisions expiring in the next few years
While the One Big Beautiful Bill Act provided relief by extending TCJA individual provisions through 2028, several important tax benefits are still on expiration schedules that could significantly impact your taxes.
TCJA individual provisions expire after 2028
All the major individual tax benefits extended by the recent legislation will sunset after 2028 unless Congress acts again. According to the Congressional Budget Office, this affects over 150 million taxpayers.
What expires after 2028:
SALT deduction cap expires after 2028
The $10,000 state and local tax deduction limit ends after 2028, allowing full deductibility of state income, property, and sales taxes for itemizers.
Impact for high-tax state residents: A California couple earning $200,000 with $25,000 in state/local taxes would save approximately $5,550 in federal taxes (22% bracket) once the cap expires.
Business provisions already expiring
Several business tax benefits are on faster expiration schedules:
Bonus depreciation phase-down (2023-2027)
R&D expense deduction (expired 2022)
Research and development expenses must now be capitalized and amortized over 5 years (15 years for foreign R&D), rather than fully deducted in the year incurred. This affects software companies, manufacturers, and other innovation-heavy businesses.
Interest deduction limitations
The Section 163(j) interest deduction limitation for businesses continues indefinitely, capping deductible business interest at 30% of adjusted taxable income.
Planning for upcoming expirations
Individual taxpayers should:
1. Consider Roth conversions while tax rates remain lower (through 2028)
2. Accelerate income into lower-rate years if possible
3. Review estate planning before exemption drops in 2029
4. Maximize retirement contributions while in potentially lower brackets
Business owners should:
1. Accelerate equipment purchases while bonus depreciation remains available
2. Consider entity structure changes before Section 199A expires
3. Plan R&D spending around the amortization requirement
What Congress might do
Historically, popular individual tax provisions get extended. The American Taxpayer Relief Act of 2012 made many Bush tax cuts permanent, suggesting similar action could occur before 2028.
Track upcoming changes
Stay informed about potential legislative changes, as tax law can shift quickly based on political developments and economic conditions.
Key takeaway: The 2028 sunset of TCJA individual provisions could increase taxes by $1,500-4,000+ annually for middle-class families unless Congress extends them again.
*Sources: Congressional Budget Office Long-Term Budget Outlook, IRS Revenue Procedure 2026-1*
Key Takeaway: The 2028 sunset of TCJA individual provisions could increase taxes by $1,500-4,000+ annually for middle-class families unless Congress extends them again.
Timeline of major expiring tax provisions
| Tax Provision | Current Status | Expiration | Impact After Expiration |
|---|---|---|---|
| Bonus Depreciation | 20% (2026) | 0% after 2027 | Slower equipment write-offs |
| TCJA Individual Rates | Extended through 2028 | End of 2028 | Higher tax brackets |
| Child Tax Credit | $2,000 through 2028 | End of 2028 | Drops to $1,000 |
| Standard Deduction | Higher through 2028 | End of 2028 | Roughly halves |
| SALT Cap | $10,000 through 2028 | End of 2028 | Full deductibility returns |
| Section 199A | 20% through 2028 | End of 2028 | No pass-through deduction |
More Perspectives
Michelle Woodard, Tax Policy Analyst
High-income taxpayers facing the most significant impacts from expiring provisions
High-income implications of expiring provisions
High earners face the most dramatic tax increases when current provisions expire, particularly from bracket changes and the return of full SALT deductibility.
Bracket increases hit hardest at top
When TCJA individual provisions expire after 2028, the highest earners see the largest dollar impact:
Example: A single filer earning $400,000 would see their marginal rate increase from 32% to 35% on income between $197,300-$250,525, and from 35% to 39.6% above $250,525. This could increase annual taxes by $3,000-8,000+.
SALT cap elimination provides major relief
The $10,000 SALT cap expires after 2028, providing substantial tax cuts for high earners in high-tax states. Per Treasury analysis, 96% of SALT cap benefits flow to taxpayers earning over $100,000.
High-tax state impact: A New York couple earning $750,000 with $45,000 in state/local taxes would save approximately $13,000 annually (37% bracket) once the cap lifts.
Estate tax exemption reduction
The estate tax exemption dropping from ~$14 million to ~$7.5 million per person after 2028 affects ultra-high net worth individuals.
Section 199A elimination
High-earning business owners lose the 20% pass-through deduction entirely after 2028, even for non-service businesses.
Key takeaway: High earners could see net tax changes ranging from significant savings (SALT cap relief) to major increases (bracket changes and lost deductions) depending on their state and income mix.
Key Takeaway: High earners could see net tax changes ranging from significant savings (SALT cap relief) to major increases (bracket changes and lost deductions) depending on their state and income mix.
Robert Kim, Tax Return Analyst
Families who could lose significant child-related tax benefits after 2028
How expiring provisions affect families
Families face some of the most significant potential tax increases when TCJA provisions expire after 2028, particularly from reduced child tax credits and higher tax brackets.
Child tax credit reduction
The child tax credit drops from $2,000 to $1,000 per qualifying child after 2028, with reduced refundability.
Family impact: A family with three children would lose $3,000 in annual tax benefits, equivalent to a $250 monthly reduction in household cash flow.
Standard deduction cuts hurt families
The standard deduction dropping from $30,000 to approximately $17,000 (married filing jointly) means an additional $13,000 of taxable income for families who don't itemize.
Tax increase example: A family earning $80,000 would owe approximately $1,560 more in federal taxes annually from the reduced standard deduction alone (12% bracket).
Combined impact for middle-class families
A typical family with two children earning $75,000 could see their federal tax liability increase by $3,000-4,000 annually from:
Planning strategies for families
1. Increase 529 education savings while in lower brackets
2. Consider dependent care FSA maximization
3. Build emergency funds to handle potential tax increases
4. Review life insurance needs if estate exemption drops
Key takeaway: Middle-class families with children could face $3,000-4,000+ annual tax increases starting in 2029 unless Congress extends current provisions.
Key Takeaway: Middle-class families with children could face $3,000-4,000+ annual tax increases starting in 2029 unless Congress extends current provisions.
Sources
- Congressional Budget Office Long-Term Budget Outlook — Analysis of tax provision expirations and fiscal impacts
- IRS Revenue Procedure 2026-1 — 2026 tax year inflation adjustments and current provisions
Related Questions
Reviewed by Michelle Woodard, Tax Policy Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.