Many of our clients have asked us what will change—including whether there will be any changes to 2025 tax brackets—once president-elect Donald Trump assumes office on January 20, 2025 for his second stint in the White House as President.

We have received so many inquiries that we put the question to our lead tax partner, Kermith Boffill, CPA, about what to expect from a second Donald Trump presidency.

While the Republican leader made sweeping tax law changes through the Tax Cuts and Jobs Act (TCJA) in 2017, Boffill says the smartest tactic for now is to adopt a ‘wait-and-see’ approach—in part because the current tax laws don’t expire until the end of 2025.

“We’re still under those Trump tax laws now, so everything we’ve been operating under is from the 2017 laws that were supposed to expire at the end of 2025,” Boffill explained.

That’s a situation he expects to remain in place for the foreseeable future because Republicans control Congress.

One possible exception could be a potential change that will likely affect only those at the very top end of the 2025 tax brackets.

“Some of the chatter out there is that tax rates will probably go down a bit, generally speaking,” Boffill said of the speculation he’s been hearing.

“But I think Trump talked about bringing down the highest marginal rate anyway,” he added.

Under the 2026 tax brackets, that could potentially result in a downwards shift of the 37% marginal tax rate for individuals earning $626,351 or more, or couples filing jointly on incomes of $751,601 or more.

But even if you do fall into that category, Boffill says there’s still no reason to act hastily.

The Danger of Rushing Your Decisions

Remember all those high-net-worth individuals who were worried about potential changes to estate laws and estate exemptions?

Many of them placed their bets on Trump losing the presidential election—and are now in a situation where they may have acted prematurely.

That’s because, starting on January 1, 2025, the federal estate, gift, and GST tax exemptions will be $13,990,000 per taxpayer—up to $27,980,000 for married couples. 

“The fear was that if Trump lost the election and those provisions were allowed to expire, those exemptions would go back down to the old figures, which were just over $5 million per person,” Boffill explained.

Which means that all those who rushed to clear out their estates did so on the provision of tax laws that may never come to pass.

“I think those estate tax limitations are most likely to remain at the current rate for the time being,” Boffill said.

“And I think the other significant change is that Trump may consider eliminating the SALT cap that has proved so unpopular in certain parts of the country.”

The SALT Cap: Will It Stay or Will It Go?

Residents of high-tax states like California, New York and New Jersey take note: the $10,000 SALT cap—one of the most contentious elements of Trump’s 2017 Tax Cuts and Job Acts changes—is due to expire at the end of 2025.

And Trump himself has vowed to “get SALT back”—apparently in reference to lifting the $10,000 cap on state and federal tax deductions that he personally signed into law as president. 

“I will turn it around, get SALT back, lower your taxes, and so much more,” Trump said in the build-up to the elections.

Critics argue the cap disproportionately targets residents of Democratic-leaning, high-tax states, who prior to 2017 could itemize deductions and deduct the full amount of state and local taxes paid—including property taxes, income taxes, or sales taxes—from their federal taxable income. 

Congress made repeated efforts to either repeal or substantially raise the SALT cap under the previous Biden administration.

Now Trump has moved to placate residents in states with high property taxes and equally high income tax rates who felt the full brunt of the initial SALT cap changes. 

“If the SALT cap is raised, it will obviously benefit high-net-worth individuals and those who already pay high property taxes,” Boffill explained.

“And if you’re a high-net-worth individual, you definitely need to consider carefully whether you’re itemizing your deductions or taking standard deductions,” he added.

Kermith’s Overall Advice? Stay the Course

What’s the key piece of advice a tax practitioner with decades of experience continues to give to his clients in a time of change?

Stay the course.

“I wouldn’t be too worried about 2025 tax brackets or anything like that, for now,” Boffill said.

“The advice I’ve been giving the majority of my clients is to simply stay the course.”

Boffill says it’s far too early to accurately predict what Trump may do during his second term in office—and points out that any changes won’t come into effect until 2026 at the earliest.

Boffill is confident his years of experience as a leading tax practitioner with Grobstein Teeple will help guide his clients through uncertain times.

“Obviously every client is different, but my advice is really just to continue down the path they’re on,” he said.

“Let’s not make any drastic changes. We don’t need to make major changes to our plans,” he added to those worried about the potential impact of Trump’s second term. 

“Most importantly, let’s wait and see when Congress comes into play.”

“January 1, 2026 is the date I’m looking towards. Until then, I think we just need to wait and see.”

If you still have questions about the potential impact of tax legislation changes, you can email Kermith to arrange a debrief.