Middle Class Tax Cut Act

HR 7303, the Middle Class Tax Cut Act, increases standard deductions and adjusts tax brackets for 2026 and beyond. It raises the standard deduction to $75,000 for joint filers (from $4,400) and $50,000 for single filers (from $3,000), directly benefiting middle-income households. The bill also creates new income tax brackets with lower rates for most earners, such as a 25% rate for taxable income under $200,000 for joint filers, replacing previous rates. These changes apply to taxable years beginning after December 31, 2025, and affect all individual tax filers based on their filing status.