The Senate passed a long-awaited tax overhaul bill early Saturday morning. The bill, the biggest rewrite of the individual and corporate tax code in 30 years, would affect the pocketbooks of most Americans. It still has to be reconciled with a tax overhaul passed by the House last month before being sent to President Trump for his signature.

How the bill will affect your pocketbook will depend on many factors. And the impact could change over time, since the individual tax code provisions expire at the end of 2025. But enter your income below for a prediction about how you could be affected:

My household makes $
per year.

Under the Senate's plan, people like you (with incomes in the 20th to 40th percentile) would average a $330 tax cut in 2019.

85.4 percent of people like you would get a tax cut, and 5.1 percent would see a tax increase.

By contrast, people in the top 0.1 percent — those making over $3.6 million — would get a cut averaging $85,640.

What could cause my tax rate to increase?

  • It probably won't. Most families making under $25,000 pay no federal income tax. They will continue to pay no income tax in Senate bill.
  • Households without children do not receive any additional money back from the government.
  • People who itemize their deductions — and particularly those who deduct a significant amount from their taxable income — are more likely to pay more. (About a third of household itemizes deductions, like the mortgage interest deduction, and the vast majority of people earning more than $100,000 do.)
  • People in high-tax states may be particularly affected. While the Senate bill limits or does away with many deductions, the most significant loss is the deduction for state and local taxes. The Senate bill only retains a deduction for up to $10,000 in property taxes, so people who pay high levels of state and local income tax will be hit. Notably, the mortgage interest deduction and charitable deduction are preserved.
  • Singles are more likely to pay more than families with children because the bill gives bigger tax breaks for families with kids.
  • Doctors, lawyers and other “service professionals” are likely to pay more because the new tax break for pass through business owners doesn’t apply to service industry professional who make over $250,000.
  • High-income earners will still have to pay the Alternative Minimum Tax, although the income level it kicks in at goes up

How every income group is affected in 2019, compared to current law

Income Average tax change Share getting a cut or hike*
$0 to $25,400
-$50
52.8%
1.5%
$25,400 to $49,600
-$330
85.4%
5.1%
$49,600 to $87,400
-$850
87.9%
10.8%
$87,400 to $150,100
-$1,430
83.6%
16.0%
$150,100 to $217,800
-$2,230
82.1%
17.7%
$217,800 to $308,200
-$3,130
79.6%
20.4%
$308,200 to $746,000
-$11,610
92.9%
7.1%
Over $746,000
-$34,130
86.0%
14.0%
All taxpayers
-$1,260
76.3%
8.5%
Income Share getting a cut or hike
$0 to $25,400
52.8%
1.5%
$25,400 to $49,600
85.4%
5.1%
$49,600 to $87,400
87.9%
10.8%
$87,400 to $150,100
83.6%
16.0%
$150,100 to $217,800
82.1%
17.7%
$217,800 to $308,200
79.6%
20.4%
$308,200 to $746,000
92.9%
7.1%
Over $746,000
86.0%
14.0%
All taxpayers
76.3%
8.5%

*Remaining people's taxes are unchanged.

At the end of 2025, all the tax breaks for individuals and families will go away, leading many low- and middle-income taxpayers to see a tax increase. That’s because the bill adopts a less generous formula for calculating inflation, which means people will move into higher tax brackets faster. The corporate tax cuts will be unaffected.

How every income group is affected in 2027, compared to current law

Income Average tax change Share getting a cut or hike*
$0 to $28,100
+$10
11.8%
32.4%
$28,100 to $54,700
$0
24.7%
56.0%
$54,700 to $93,200
-$50
27.5%
65.5%
$93,200 to $154,900
-$150
38.2%
58.9%
$154,900 to $225,400
-$340
44.3%
54.0%
$225,400 to $304,600
-$560
57.1%
41.6%
$304,600 to $912,100
-$2,010
63.9%
35.4%
Over $912,100
-$32,510
83.0%
16.8%
All taxpayers
-$340
28%
50.3%
Income Share getting a cut or hike
$0 to $28,100
11.8%
32.4%
$28,100 to $54,700
24.7%
56.0%
$54,700 to $93,200
27.5%
65.5%
$93,200 to $154,900
38.2%
58.9%
$154,900 to $225,400
44.3%
54.0%
$225,400 to $304,600
57.1%
41.6%
$304,600 to $912,100
63.9%
35.4%
Over $912,100
83.0%
16.8%
All taxpayers
28%
50.3%

*Remaining people's taxes are unchanged.

Highlighting in the 2027 chart is by income percentile. The TPC analysis accounts for the fact that people your current income percentile will have a higher average income by 2027.

Additional work by Kevin Uhrmacher.

Correction 12/5/17: A previous mobile version of this story mistakenly showed an identical share of people getting tax breaks in 2019 and 2027. It has been updated.

About this story

Current tax plan data from the IRS via the Tax Policy Center.

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