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H. R. 7303

Middle Class Tax Cut Act

Shown here: Introduced in House (2026-01-30)

To amend the Internal Revenue Code of 1986 to reform the individual income tax rates.

1. Short title

This Act may be cited as the “Middle Class Tax Cut Act”.

2. Increased standard deduction

(a) In general

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

(1) in subparagraph (B), by striking “$4,400” and inserting “$75,000”, and

(2) in subparagraph (C), by striking “$3,000” and inserting “$50,000”.

(b) Conforming amendments

Section 63(c)(4) of such Code is amended—

(1) by inserting “(2026 in the case of the dollar amounts contained in subparagraph (B) or (C) of paragraph (2))” after “1988”, and

(2) in subparagraph (B)—

(A) in clause (i)—

(i) by striking “paragraph (2)(B), (2)(C), or (5)(A)” and inserting “paragraph (5)(A)”, and

(ii) by striking “and” at the end,

(B) in clause (ii), by striking the period at the end and inserting “, and”, and

(C) by adding at the end the following new clause:

(i) “calendar year 2025” in the case of the dollar amounts contained in subparagraph (B) or (C) of paragraph (2).

(c) Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2025.

3. Individual income tax rate reform

(a) Joint returns and surviving spouses

Section 1(a) of the Internal Revenue Code of 1986 is amended by striking the table contained therein and inserting the following:

If taxable income is:
The tax is:
Not over $200,000
25% of taxable income.
Over $200,000 but not over $400,000
$50,000, plus 30% of the excess over $200,000.
Over $400,000 but not over $1,000,000
$110,000, plus 40% of the excess over $400,000.
Over $1,000,000 but not over $2,000,000
$350,000, plus 50% of the excess over $1,000,000.
Over $2,000,000
$850,000, plus 70% of the excess over $2,000,000.

(b) Heads of households

Section 1(b) of such Code is amended by striking the table contained therein and inserting the following:

If taxable income is:
The tax is:
Not over $150,000
25% of taxable income.
Over $150,000 but not over $300,000
$37,500, plus 30% of the excess over $150,000.
Over $300,000 but not over $750,000
$82,500, plus 40% of the excess over $300,000.
Over $750,000 but not over $1,500,000
$262,500, plus 50% of the excess over $750,000.
Over $1,500,000
$637,500, plus 70% of the excess over $1,500,000.

(c) Other individuals

Section 1 of such Code is amended by striking subsections (c) and (d) and inserting the following new subsection:

(d) Other individuals
There is hereby imposed on the taxable income of every individual (other than an individual subject to tax under subsection (a) or (b)) a tax determined in accordance with the following table:
If taxable income is:
The tax is:
Not over $100,000
25% of taxable income.
Over $100,000 but not over $200,000
$25,000, plus 30% of the excess over $100,000.
Over $200,000 but not over $500,000
$55,000, plus 40% of the excess over $200,000.
Over $500,000 but not over $1,000,000
$175,000, plus 50% of the excess over $500,000.
Over $1,000,000
$425,000, plus 70% of the excess over $1,000,000.

(d) Estates and trusts

Section 1(e) of such Code is amended by striking the table contained therein and inserting the following new table:

If taxable income is:
The tax is:
Not over $3,000
25% of taxable income.
Over $3,000 but not over $11,000
$750, plus 30% of the excess over $3,000.
Over $11,000 but not over $15,000
$3,150, plus 40% of the excess over $11,000.
Over $15,000 but not over $20,000
$4,750, plus 50% of the excess over $15,000.
Over $20,000
$7,250, plus 70% of the excess over $20,000.

(e) Repeal of reduced rates of tax on capital gains

Section 1 of such Code is amended by striking subsection (h).

(f) Conforming amendments

(1) Section 1(f) of such Code is amended—

(A) in the heading, by striking “Phaseout of marriage penalty in 15-percent bracket”,

(B) in paragraph (1)—

(i) by striking “1993” and inserting “2026”

(ii) by striking “(c), ”,

(C) in paragraph (2)—

(i) by striking “(c),”, and

(ii) by amending subparagraph (A) to read as follows:

(A) by increasing the minimum and maximum dollar amounts for each bracket for which a tax is imposed under such table by the cost-of-living adjustment for such calendar year, determined by substituting “2026” for “2016” in paragraph (3)(A)(ii),

(D) in paragraph (7)(B)—

(i) in the heading, by striking “married individuals filing separately” and inserting “certain individuals”, and

(ii) by striking “married individual filing a separate return” and inserting “any individual subject to tax under subsection (d)”, and

(E) by striking paragraph (8).

(2) Section 1 of such Code is amended by striking subsections (i) and (j).

(g) Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2025.

Workspace/Typeset/Bill

H. R. 7303

Middle Class Tax Cut Act

Shown here: Introduced in House (2026-01-30)

To amend the Internal Revenue Code of 1986 to reform the individual income tax rates.

1. Short title

This Act may be cited as the “Middle Class Tax Cut Act”.

2. Increased standard deduction

(a) In general

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

(1) in subparagraph (B), by striking “$4,400” and inserting “$75,000”, and

(2) in subparagraph (C), by striking “$3,000” and inserting “$50,000”.

(b) Conforming amendments

Section 63(c)(4) of such Code is amended—

(1) by inserting “(2026 in the case of the dollar amounts contained in subparagraph (B) or (C) of paragraph (2))” after “1988”, and

(2) in subparagraph (B)—

(A) in clause (i)—

(i) by striking “paragraph (2)(B), (2)(C), or (5)(A)” and inserting “paragraph (5)(A)”, and

(ii) by striking “and” at the end,

(B) in clause (ii), by striking the period at the end and inserting “, and”, and

(C) by adding at the end the following new clause:

(i) “calendar year 2025” in the case of the dollar amounts contained in subparagraph (B) or (C) of paragraph (2).

(c) Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2025.

3. Individual income tax rate reform

(a) Joint returns and surviving spouses

Section 1(a) of the Internal Revenue Code of 1986 is amended by striking the table contained therein and inserting the following:

If taxable income is:
The tax is:
Not over $200,000
25% of taxable income.
Over $200,000 but not over $400,000
$50,000, plus 30% of the excess over $200,000.
Over $400,000 but not over $1,000,000
$110,000, plus 40% of the excess over $400,000.
Over $1,000,000 but not over $2,000,000
$350,000, plus 50% of the excess over $1,000,000.
Over $2,000,000
$850,000, plus 70% of the excess over $2,000,000.

(b) Heads of households

Section 1(b) of such Code is amended by striking the table contained therein and inserting the following:

If taxable income is:
The tax is:
Not over $150,000
25% of taxable income.
Over $150,000 but not over $300,000
$37,500, plus 30% of the excess over $150,000.
Over $300,000 but not over $750,000
$82,500, plus 40% of the excess over $300,000.
Over $750,000 but not over $1,500,000
$262,500, plus 50% of the excess over $750,000.
Over $1,500,000
$637,500, plus 70% of the excess over $1,500,000.

(c) Other individuals

Section 1 of such Code is amended by striking subsections (c) and (d) and inserting the following new subsection:

(d) Other individuals
There is hereby imposed on the taxable income of every individual (other than an individual subject to tax under subsection (a) or (b)) a tax determined in accordance with the following table:
If taxable income is:
The tax is:
Not over $100,000
25% of taxable income.
Over $100,000 but not over $200,000
$25,000, plus 30% of the excess over $100,000.
Over $200,000 but not over $500,000
$55,000, plus 40% of the excess over $200,000.
Over $500,000 but not over $1,000,000
$175,000, plus 50% of the excess over $500,000.
Over $1,000,000
$425,000, plus 70% of the excess over $1,000,000.

(d) Estates and trusts

Section 1(e) of such Code is amended by striking the table contained therein and inserting the following new table:

If taxable income is:
The tax is:
Not over $3,000
25% of taxable income.
Over $3,000 but not over $11,000
$750, plus 30% of the excess over $3,000.
Over $11,000 but not over $15,000
$3,150, plus 40% of the excess over $11,000.
Over $15,000 but not over $20,000
$4,750, plus 50% of the excess over $15,000.
Over $20,000
$7,250, plus 70% of the excess over $20,000.

(e) Repeal of reduced rates of tax on capital gains

Section 1 of such Code is amended by striking subsection (h).

(f) Conforming amendments

(1) Section 1(f) of such Code is amended—

(A) in the heading, by striking “Phaseout of marriage penalty in 15-percent bracket”,

(B) in paragraph (1)—

(i) by striking “1993” and inserting “2026”

(ii) by striking “(c), ”,

(C) in paragraph (2)—

(i) by striking “(c),”, and

(ii) by amending subparagraph (A) to read as follows:

(A) by increasing the minimum and maximum dollar amounts for each bracket for which a tax is imposed under such table by the cost-of-living adjustment for such calendar year, determined by substituting “2026” for “2016” in paragraph (3)(A)(ii),

(D) in paragraph (7)(B)—

(i) in the heading, by striking “married individuals filing separately” and inserting “certain individuals”, and

(ii) by striking “married individual filing a separate return” and inserting “any individual subject to tax under subsection (d)”, and

(E) by striking paragraph (8).

(2) Section 1 of such Code is amended by striking subsections (i) and (j).

(g) Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2025.