26Title 26The US tax code, read & explained ES

What changed

What the 2025 tax law changed

The One Big Beautiful Bill Act, Public Law 119-21, was signed on July 4, 2025. It changed 147 sections of the tax code, 20 of them brand-new. This list is built from the official amendment records, so every section the law touched is here, from the big headline changes to small technical edits.

Explained so far

The changes people ask about most

§ 1The income tax ratesSeven rates from 10% to 37%, applied in layers. Only the slice of income inside each bracket is taxed at that bracket's rate.§ 24The child tax creditUp to $2,200 per child under 17, with up to $1,700 of it paid out even if you owe no tax. Social Security numbers are required.§ 25AEducation credits: American Opportunity and Lifetime LearningUp to $2,500 a year per student for the first four years of college ($1,000 of it refundable), or up to $2,000 per return for any study. Both phase out between $80,000 and $90,000 of income ($160,000–$180,000 joint).§ 63Taxable income and the standard deductionTaxable income is what's left after deductions. Most people take the flat standard deduction — $16,100 single, $32,200 married filing jointly for 2026.§ 162Business expenses you can deductAny “ordinary and necessary” cost of running your business is deductible — software, equipment, travel, a share of your phone. Personal costs, and most entertainment, are not.§ 199AThe qualified business income (QBI) deductionOwners of pass-through businesses can deduct up to 20% of their business profit, capped at 20% of taxable income. Made permanent in 2025.§ 223Health savings accounts (HSAs)The only account that's tax-free going in, growing and coming out for medical costs. Up to $4,400 single or $8,750 family for 2026 — and from 2026, individual bronze and catastrophic plans qualify.§ 224“No tax on tips” — the qualified tips deductionFrom 2025 to 2028, tipped workers can deduct up to $25,000 of tips from federal income tax. Payroll taxes and most state taxes still apply.§ 225The overtime deductionFrom 2025 to 2028, hourly workers can deduct the “half” in time-and-a-half — up to $12,500, or $25,000 for couples.§ 2010The estate tax exemptionEstates owe federal estate tax only above $15 million per person in 2026 ($30 million for a married couple) — a level the 2025 law made permanent and now indexes for inflation.§ 6501How long can the IRS audit me, and how long do I have to claim a refund?The IRS usually has 3 years from the day you file to assess more tax. It's 6 years if you left out more than 25% of your income, and unlimited if you never filed. You have 3 years to claim a refund.§ 7701Who counts as a US tax residentTax residency isn't immigration status. A green card or the “substantial presence test” — a day-counting formula — makes you a resident, taxed on worldwide income.

Brand-new sections

20 sections that didn't exist before

  1. § 25F Qualified elementary and secondary education scholarships New
  2. § 128 Employer contributions to Trump accounts New
  3. § 139J Certain contributions to Trump accounts New
  4. § 139K Scholarships for qualified elementary or secondary education expenses of eligible students New
  5. § 139L Interest on loans secured by rural or agricultural real property New
  6. § 174A Domestic research or experimental expenditures New
  7. § 224 Qualified tips New Explained
  8. § 225 Qualified overtime compensation New Explained
  9. § 530A Trump accounts New
  10. § 951B Amounts included in gross income of foreign controlled United States shareholders New
  11. § 1062 Gain from the sale or exchange of qualified farmland property to qualified farmers New
  12. § 4475 Imposition of tax New
  13. § 6039K Returns with respect to qualified opportunity funds and qualified rural opportunity funds New
  14. § 6039L Information required from qualified opportunity zone businesses and qualified rural opportunity zone businesses New
  15. § 6050AA Returns relating to applicable passenger vehicle loan interest received in trade or business from individuals New
  16. § 6434 Trump accounts contribution pilot program New
  17. § 6435 Dyed fuel New
  18. § 6659 Improper claim for Trump account contribution pilot program credit New
  19. § 6695B Penalty for substantial misstatements on certification provided by supplier New
  20. § 6726 Failure to comply with information reporting requirements relating to qualified opportunity funds and qualified rural opportunity funds New

Every section it touched

All 147, by part of the code

Many of these are small technical changes, such as updated cross-references or dates. Open a section to see the current text.

Subtitle A — Income Taxes · Chapter 1 — NORMAL TAXES AND SURTAXES (105)
  1. § 1 Tax imposed Explained
  2. § 21 Expenses for household and dependent care services necessary for gainful employment
  3. § 23 Adoption expenses
  4. § 24 Child tax credit Explained
  5. § 25 Interest on certain home mortgages
  6. § 25A American Opportunity and Lifetime Learning credits Explained
  7. § 25B Elective deferrals and IRA contributions by certain individuals
  8. § 25C Energy efficient home improvement credit
  9. § 25D Residential clean energy credit
  10. § 25E Previously-owned clean vehicles
  11. § 25F Qualified elementary and secondary education scholarships New
  12. § 30C Alternative fuel vehicle refueling property credit
  13. § 30D Clean vehicle credit
  14. § 35 Health insurance costs of eligible individuals
  15. § 36B Refundable credit for coverage under a qualified health plan
  16. § 40A Biodiesel and renewable diesel used as fuel
  17. § 41 Credit for increasing research activities
  18. § 42 Low-income housing credit
  19. § 45 Electricity produced from certain renewable resources, etc
  20. § 45B Credit for portion of employer social security taxes paid with respect to employee cash tips
  21. § 45D New markets tax credit
  22. § 45F Employer-provided child care credit
  23. § 45L New energy efficient home credit
  24. § 45Q Credit for carbon oxide sequestration
  25. § 45S Employer credit for paid family and medical leave
  26. § 45U Zero-emission nuclear power production credit
  27. § 45V Credit for production of clean hydrogen
  28. § 45W Credit for qualified commercial clean vehicles
  29. § 45X Advanced manufacturing production credit
  30. § 45Y Clean electricity production credit
  31. § 45Z Clean fuel production credit
  32. § 48 Energy credit
  33. § 48C Qualifying advanced energy project credit
  34. § 48D Advanced manufacturing investment credit
  35. § 48E Clean electricity investment credit
  36. § 50 Other special rules
  37. § 55 Alternative minimum tax imposed
  38. § 56 Adjustments in computing alternative minimum taxable income
  39. § 56A Adjusted financial statement income
  40. § 57 Items of tax preference
  41. § 59 Other definitions and special rules
  42. § 59A Tax on base erosion payments of taxpayers with substantial gross receipts
  43. § 63 Taxable income defined Explained
  44. § 67 2-percent floor on miscellaneous itemized deductions
  45. § 68 Overall limitation on itemized deductions
  46. § 78 Gross up for deemed paid foreign tax credit
  47. § 108 Income from discharge of indebtedness
  48. § 127 Educational assistance programs
  49. § 128 Employer contributions to Trump accounts New
  50. § 129 Dependent care assistance programs
  51. § 132 Certain fringe benefits
  52. § 139J Certain contributions to Trump accounts New
  53. § 139K Scholarships for qualified elementary or secondary education expenses of eligible students New
  54. § 139L Interest on loans secured by rural or agricultural real property New
  55. § 142 Exempt facility bond
  56. § 144 Qualified small issue bond; qualified student loan bond; qualified redevelopment bond
  57. § 149 Bonds must be registered to be tax exempt; other requirements
  58. § 151 Allowance of deductions for personal exemptions
  59. § 162 Trade or business expenses Explained
  60. § 163 Interest
  61. § 164 Taxes
  62. § 165 Losses
  63. § 168 Accelerated cost recovery system
  64. § 170 Charitable, etc., contributions and gifts
  65. § 172 Net operating loss deduction
  66. § 174 Amortization of research and experimental expenditures
  67. § 174A Domestic research or experimental expenditures New
  68. § 179 Election to expense certain depreciable business assets
  69. § 179D Energy efficient commercial buildings deduction
  70. § 181 Treatment of certain qualified productions
  71. § 195 Start-up expenditures
  72. § 199A Qualified business income Explained
  73. § 217 Moving expenses
  74. § 223 Health savings accounts Explained
  75. § 224 Qualified tips New Explained
  76. § 225 Qualified overtime compensation New Explained
  77. § 226 Cross reference
  78. § 250 Foreign-derived deduction eligible income and net CFC tested income
  79. § 263 Capital expenditures
  80. § 263A Capitalization and inclusion in inventory costs of certain expenses
  81. § 274 Disallowance of certain entertainment, etc., expenses
  82. § 280C Certain expenses for which credits are allowable
  83. § 460 Special rules for long-term contracts
  84. § 461 General rule for taxable year of deduction
  85. § 529 Qualified tuition programs
  86. § 529A Qualified ABLE programs
  87. § 530A Trump accounts New
  88. § 543 Personal holding company income
  89. § 707 Transactions between partner and partnership
  90. § 856 Definition of real estate investment trust
  91. § 864 Definitions and special rules
  92. § 898 Taxable year of certain foreign corporations
  93. § 904 Limitation on credit
  94. § 951 Amounts included in gross income of United States shareholders
  95. § 951A Net CFC tested income included in gross income of United States shareholders
  96. § 951B Amounts included in gross income of foreign controlled United States shareholders New
  97. § 954 Foreign base company income
  98. § 958 Rules for determining stock ownership
  99. § 960 Deemed paid credit for subpart F inclusions
  100. § 1016 Adjustments to basis
  101. § 1062 Gain from the sale or exchange of qualified farmland property to qualified farmers New
  102. § 1063 Cross references
  103. § 1202 Partial exclusion for gain from certain small business stock
  104. § 1245 Gain from dispositions of certain depreciable property
  105. § 1371 Coordination with subchapter C
Subtitle B — Estate and Gift Taxes · Chapter 11 — ESTATE TAX (1)
  1. § 2010 Unified credit against estate tax Explained
Subtitle C — Employment Taxes · Chapter 21 — FEDERAL INSURANCE CONTRIBUTIONS ACT (1)
  1. § 3134 Employee retention credit for employers subject to closure due to COVID–19
Subtitle C — Employment Taxes · Chapter 24 — COLLECTION OF INCOME TAX AT SOURCE ON WAGES (1)
  1. § 3406 Backup withholding
Subtitle D — Miscellaneous Excise Taxes · Chapter 32 — MANUFACTURERS EXCISE TAXES (2)
  1. § 4101 Registration and bond
  2. § 4182 Exemptions
Subtitle D — Miscellaneous Excise Taxes · Chapter 36 — CERTAIN OTHER EXCISE TAXES (1)
  1. § 4475 Imposition of tax New
Subtitle D — Miscellaneous Excise Taxes · Chapter 42 — PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT ORGANIZATIONS (2)
  1. § 4960 Tax on excess tax-exempt organization executive compensation
  2. § 4968 Excise tax based on investment income of private colleges and universities
Subtitle D — Miscellaneous Excise Taxes · Chapter 43 — QUALIFIED PENSION, ETC., PLANS (1)
  1. § 4973 Tax on excess contributions to certain tax-favored accounts and annuities
Subtitle D — Miscellaneous Excise Taxes · Chapter 48 — MAINTENANCE OF MINIMUM ESSENTIAL COVERAGE (1)
  1. § 5000A Requirement to maintain minimum essential coverage
Subtitle E — Alcohol, Tobacco, and Certain Other Excise Taxes · Chapter 53 — MACHINE GUNS, DESTRUCTIVE DEVICES, AND CERTAIN OTHER FIREARMS (2)
  1. § 5811 Transfer tax
  2. § 5821 Making tax
Subtitle F — Procedure and Administration · Chapter 61 — INFORMATION AND RETURNS (9)
  1. § 6011 General requirement of return, statement, or list
  2. § 6033 Returns by exempt organizations
  3. § 6039K Returns with respect to qualified opportunity funds and qualified rural opportunity funds New
  4. § 6039L Information required from qualified opportunity zone businesses and qualified rural opportunity zone businesses New
  5. § 6041 Information at source
  6. § 6041A Returns regarding payments of remuneration for services and direct sales
  7. § 6050W Returns relating to payments made in settlement of payment card and third party network transactions
  8. § 6050AA Returns relating to applicable passenger vehicle loan interest received in trade or business from individuals New
  9. § 6051 Receipts for employees
Subtitle F — Procedure and Administration · Chapter 63 — ASSESSMENT (2)
  1. § 6206 Special rules applicable to excessive claims under certain sections
  2. § 6213 Restrictions applicable to deficiencies; petition to Tax Court
Subtitle F — Procedure and Administration · Chapter 65 — ABATEMENTS, CREDITS, AND REFUNDS (6)
  1. § 6417 Elective payment of applicable credits
  2. § 6418 Transfer of certain credits
  3. § 6426 Credit for alcohol fuel, biodiesel, and alternative fuel mixtures
  4. § 6430 Treatment of tax imposed at Leaking Underground Storage Tank Trust Fund financing rate
  5. § 6434 Trump accounts contribution pilot program New
  6. § 6435 Dyed fuel New
Subtitle F — Procedure and Administration · Chapter 66 — LIMITATIONS (1)
  1. § 6501 Limitations on assessment and collection Explained
Subtitle F — Procedure and Administration · Chapter 68 — ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES (9)
  1. § 6659 Improper claim for Trump account contribution pilot program credit New
  2. § 6662 Imposition of accuracy-related penalty on underpayments
  3. § 6675 Excessive claims with respect to the use of certain fuels
  4. § 6676 Erroneous claim for refund or credit
  5. § 6693 Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions
  6. § 6695B Penalty for substantial misstatements on certification provided by supplier New
  7. § 6696 Rules applicable with respect to sections 6694, 6695, 6695A, and 6695B
  8. § 6724 Waiver; definitions and special rules
  9. § 6726 Failure to comply with information reporting requirements relating to qualified opportunity funds and qualified rural opportunity funds New
Subtitle F — Procedure and Administration · Chapter 78 — DISCOVERY OF LIABILITY AND ENFORCEMENT OF TITLE (1)
  1. § 7652 Shipments to the United States
Subtitle F — Procedure and Administration · Chapter 79 — DEFINITIONS (2)
  1. § 7701 Definitions Explained
  2. § 7704 Certain publicly traded partnerships treated as corporations