Tax Cuts and Jobs Act
The Tax Reform and Jobs Act is the first comprehensive tax reform in more than three decades. It puts money back in the pockets of hardworking Texans, gives relief to small businesses, and will incentivize companies to bring jobs back from overseas. You can view the policy highlights of this legislation here and how it will allow Texans to keep more of what they earn.
What Taxpayers Can Expect:
- The typical family of four earning the median family income of $73,000 will receive a tax cut of $2,058 – a reduction of nearly 58 percent.
- A single parent with one child and an annual income of $41,000 will receive a tax cut of $1,304.50 – a reduction of nearly 73 percent.
- A married couple who are small business owners and earn $100,000 per year will receive a tax cut of $2,603.50 – a reduction of nearly 24 percent.
What Won’t Change:
- Texans will be able to write off up to $10,000 in state and local taxes – including property and sales taxes.
- Charitable donations can still be deducted in order to make it easier to give to charity.
- Graduate students will continue to be able to exempt the value of reduced tuition from taxes.