H.R. 523House119th Congress (2025-2027)In Committee

Permanent Tax Cuts for American Families Act of 2025

AI-Generated Summary

Updated November 24, 2025 at 9:40 PM UTC

The Permanent Tax Cuts for American Families Act of 2025 changes the Internal Revenue Code to permanently raise the standard deduction to $18,000 for most filers and $12,000 for certain filing statuses. It also builds in an automatic inflation adjustment so the deduction keeps pace with cost‑of‑living changes. The bill removes a now‑irrelevant provision and takes effect for tax years starting after it becomes law.

Key Provisions

Raises the standard deduction amount from $4,400 to $18,000 and from $3,000 to $12,000, making the higher amounts permanent.
Adds an inflation‑adjustment rule so future standard‑deduction amounts will be automatically increased each year based on the cost‑of‑living index.
Deletes an outdated paragraph (paragraph 7) to keep the tax code consistent with the new deduction amounts.
Applies the changes to all taxable years that begin after the law is enacted.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 16, 2025

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HouseIntro Referral

Introduced in House

January 16, 2025

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 16, 2025

Bill Text

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Introduced in HouseIssued January 16, 2025

119th CONGRESS

1st Session

H. R. 523

IN THE HOUSE OF REPRESENTATIVES

January 16, 2025

Mr. Miller of Ohio (for himself, Mr. Feenstra, Mr. Smith of Nebraska, Mr. LaHood, Mrs. Miller of West Virginia, Ms. Tenney, Mr. Estes, Ms. Van Duyne, Mr. Kustoff, Mr. Finstad, and Mr. Calvert) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to permanently increase the standard deduction.

Short title

This Act may be cited as the Permanent Tax Cuts for American Families Act of 2025.

Increase in standard deduction made permanent

(a)

In general

Section 63(c)(2) of the Internal Revenue Code of 1986 is amended—

(1)

by striking $4,400 in subparagraph (B) and inserting $18,000, and

(2)

by striking $3,000 in subparagraph (C) and inserting $12,000.

(b)

Inflation adjustment

Section 63(c)(4) of such Code is amended to read as follows:

(4)

Adjustments for inflation

(A)

In general

Each dollar amount in paragraph (2)(B), (2)(C), or (5) or subsection (f) shall be increased by an amount equal to—

(i)

such dollar amount, multiplied by

(ii)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting for 2016 in subparagraph (A)(ii) thereof—

(I)

in the case of the dollar amounts contained in paragraph (2)(B) or (2)(C), 2017,

(II)

in the case of the dollar amounts contained in paragraph (5)(A) or subsection (f), 1987, and

(III)

in the case of the dollar amount contained in paragraph (5)(B), 1997.

(B)

Rounding

If any increase under this clause is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50.

(c)

Conforming amendment

Section 63(c) of such Code is amended by striking paragraph (7).

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.