United States Code

26 U.S.C. § 63

Taxable income defined

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Bills that would change it 41

  • HR 5366 Doug LaMalfa Federal Disaster Tax Relief Certainty Act Amends 63(b) · introduced · 119th Congress
  • HR 7768 Tax Relief for Renters Act of 2026 Amends 63(b) · introduced · 119th Congress
  • HR 7303 Middle Class Tax Cut Act Amends 63(c)(2), 63(c)(4) · introduced · 119th Congress
  • HR 6781 Trump Tariff Rebate Act Amends 63(c) · introduced · 119th Congress
  • HR 6542 First Home Savings Opportunity Act of 2025 Amends 63(b) · introduced · 119th Congress
  • HR 6167 HEALTH Act of 2025 Amends 63(b) · introduced · 119th Congress
  • HR 5905 Helping Our Heroes Act Amends 63(b) · introduced · 119th Congress
  • S 2744 Federal Disaster Tax Relief Act of 2025 Amends 63(c)(1), 63(c) · introduced · 119th Congress
  • S 129 No Tax on Tips Act Amends 63(b) · introduced · 119th Congress
  • S 1606 Overtime Wages Tax Relief Act Amends 63(b) · introduced · 119th Congress
  • S 1382 Family First Act Amends 63(c) · introduced · 119th Congress
  • HR 1833 Working Families Tax Cut Act Amends · introduced · 119th Congress
  • HR 1314 TIPS Act Amends 63(b) · introduced · 119th Congress
  • HR 1130 Bonus Tax Relief for America’s Seniors Act Amends 63(f)(1), 63(f) · introduced · 119th Congress
  • HR 561 Overtime Pay Tax Relief Act of 2025 Amends 63(b) · introduced · 119th Congress
  • HR 557 Working Class Bonus Tax Relief Act of 2025 Amends 63(b) · introduced · 119th Congress
  • HR 482 No Tax on Tips Act Amends 63(b) · introduced · 119th Congress
  • HR 523 Permanent Tax Cuts for American Families Act of 2025 Amends 63(c)(2), 63(c)(4) · introduced · 119th Congress
  • HR 353 Family First Act Amends 63(c) · introduced · 119th Congress
  • HR 8941 No Tax on Tips Act Amends 63(b) · introduced · 118th Congress
  • HR 3936 Tax Cuts for Working Families Act Amends · introduced · 118th Congress
  • HR 3864 Working Families Tax Cut Act Amends · introduced · 118th Congress
  • HR 3270 Permanent Tax Cuts for American Families Act of 2023 Amends 63(c)(2), 63(c)(4) · introduced · 118th Congress
  • HR 3104 Helping Our Heroes Act Amends 63(b) · introduced · 118th Congress
  • S 1454 Athlete Opportunity and Taxpayer Integrity Act Amends 63(b) · introduced · 118th Congress
  • S 1226 A bill to amend the Internal Revenue Code of 1986 to make permanent the individual tax provisions of the tax reform law, and for other pu... Amends 63(c)(2), 63(c) · introduced · 118th Congress
  • HR 9680 To amend the Internal Revenue Code to establish a flat tax, and for other purposes. Amends · introduced · 117th Congress
  • S 4969 Athlete Opportunity and Taxpayer Integrity Act Amends 63(b)(4) · introduced · 117th Congress
  • HR 8983 To rescind certain balances made available to the Internal Revenue Service and amend the Internal Revenue Code of 1986 to permanently inc... Amends 63(c)(2), 63(c)(4) · introduced · 117th Congress
  • S 3173 Claiming Losses After Disasters Act Amends 63(c)(1), 63(c) · introduced · 117th Congress
  • S 1653 SMART Act Amends · introduced · 117th Congress
  • S 126 A bill to amend the Internal Revenue Code of 1986 to make permanent the individual tax provisions of the tax reform law, and for other pu... Amends 63(c)(2), 63(c) · introduced · 117th Congress
  • S 1162 A bill to amend the Internal Revenue Code of 1986 to make permanent the individual tax provisions of the tax reform law, and for other pu... Amends 63(c)(2), 63(c) · introduced · 116th Congress
  • S 1145 SMART Act Amends · introduced · 116th Congress
  • HR 957 Tax Cuts and Jobs Middle Class Enhancement Act Amends 63(c)(7) · introduced · 116th Congress
  • HR 22 To amend the Internal Revenue Code of 1986 to make permanent the increase in the standard deduction, the increase in and modifications of... Amends 63(c)(2), 63(c)(4) · introduced · 116th Congress
  • HR 5672 PATCH Act Amends 63(c)(7) · introduced · 115th Congress
  • S 2687 A bill to amend the Internal Revenue Code of 1986 to make permanent the individual tax provisions of the tax reform law, and for other pu... Amends 63(c)(2), 63(c) · introduced · 115th Congress
  • HR 5372 Tax Cuts and Jobs Middle Class Enhancement Act Amends 63(c)(7) · introduced · 115th Congress
  • S 893 SMART Act Amends · introduced · 115th Congress
  • HR 131 To amend the Internal Revenue Code of 1986 to provide a 5-year extension for the real property standard deduction and to adjust such dedu... Amends 63(c)(1), 63(c)(4) · introduced · 112th Congress

The law today

From the official United States Code, current through Public Law 119-124.

(a) In general Except as provided in subsection (b), for purposes of this subtitle, the term “taxable income” means gross income minus the deductions allowed by this chapter (other than the standard deduction). (b) Individuals who do not itemize their deductions In the case of an individual who does not elect to itemize his deductions for the taxable year, for purposes of this subtitle, the term “taxable income” means adjusted gross income, minus— (1) the standard deduction, (2) the deduction for personal exemptions provided in section 151, (3) any deduction provided in section 199A, (4) the deduction provided in section 170(p), (5) the deduction provided in section 224, (6) the deduction provided in section 225, (7) so much of the deduction allowed by section 163(a) as is attributable to the exception under section 163(h)(4)(A), and (8) so much of the deduction allowed by section 165(a) as is attributable to the qualified net disaster loss (as defined in section 165(h)(6)(B)). (c) Standard deduction For purposes of this subtitle— (1) In general Except as otherwise provided in this subsection, the term “standard deduction” means the sum of— (A) the basic standard deduction, and (B) the additional standard deduction. (2) Basic standard deduction For purposes of paragraph (1), the basic standard deduction is— (A) 200 percent of the dollar amount in effect under subparagraph (C) for the taxable year in the case of— (i) a joint return, or (ii) a surviving spouse (as defined in section 2(a)), (B) $4,400 in the case of a head of household (as defined in section 2(b)), or (C) $3,000 in any other case. (3) Additional standard deduction for aged and blind For purposes of paragraph (1), the additional standard deduction is the sum of each additional amount to which the taxpayer is entitled under subsection (f). (4) Adjustments for inflation In the case of any taxable year beginning in a calendar year after 1988, each dollar amount contained in paragraph (2)(B), (2)(C), or (5) or subsection (f) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting for “calendar year 2016” in subparagraph (A)(ii) thereof— (i) “calendar year 1987” in the case of the dollar amounts contained in paragraph (2)(B), (2)(C), or (5)(A) or subsection (f), and (ii) “calendar year 1997” in the case of the dollar amount contained in paragraph (5)(B). (5) Limitation on basic standard deduction in the case of certain dependents In the case of an individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, the basic standard deduction applicable to such individual for such individual’s taxable year shall not exceed the greater of— (A) $500, or (B) the sum of $250 and such individual’s earned income. (6) Certain individuals, etc., not eligible for standard deduction In the case of— (A) a married individual filing a separate return where either spouse itemizes deductions, (B) a nonresident alien individual, (C) an individual making a return under section 443(a)(1) for a period of less than 12 months on account of a change in his annual accounting period, or (D) an estate or trust, common trust fund, or partnership, the standard deduction shall be zero. (7) Special rules for taxable years beginning after 2017 In the case of a taxable year beginning after December 31, 2017— (A) Increase in standard deduction Paragraph (2) shall be applied— (i) by substituting “$23,625” for “$4,400” in subparagraph (B), and (ii) by substituting “$15,750” for “$3,000” in subparagraph (C). (B) Adjustment for inflation (i) In general Paragraph (4) shall not apply to the dollar amounts contained in paragraphs (2)(B) and (2)(C). (ii) Adjustment of increased amounts In the case of a taxable year beginning after 2025, the $23,625 and $15,750 amounts in subparagraph (A) shall each 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 “2024” for “2016” in subparagraph (A)(ii) thereof.  If any increase under this clause is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50. (d) Itemized deductions For purposes of this subtitle, the term “itemized deductions” means the deductions allowable under this chapter other than— (1) the deductions allowable in arriving at adjusted gross income, and (2) any deduction referred to in any paragraph of subsection (b). (e) Election to itemize (1) In general Unless an individual makes an election under this subsection for the taxable year, no itemized deduction shall be allowed for the taxable year. For purposes of this subtitle, the determination of whether a deduction is allowable under this chapter shall be made without regard to the preceding sentence. (2) Time and manner of election Any election under this subsection shall be made on the taxpayer’s return, and the Secretary shall prescribe the manner of signifying such election on the return. (3) Change of election Under regulations prescribed by the Secretary, a change of election with respect to itemized deductions for any taxable year may be made after the filing of the return for such year. If the spouse of the taxpayer filed a separate return for any taxable year corresponding to the taxable year of the taxpayer, the change shall not be allowed unless, in accordance with such regulations— (A) the spouse makes a change of election with respect to itemized deductions, for the taxable year covered in such separate return, consistent with the change of treatment sought by the taxpayer, and (B) the taxpayer and his spouse consent in writing to the assessment (within such period as may be agreed on with the Secretary) of any deficiency, to the extent attributable to such change of election, even though at the time of the filing of such consent the assessment of such deficiency would otherwise be prevented by the operation of any law or rule of law. This paragraph shall not apply if the tax liability of the taxpayer’s spouse for the taxable year corresponding to the taxable year of the taxpayer has been compromised under section 7122. (f) Aged or blind additional amounts (1) Additional amounts for the aged The taxpayer shall be entitled to an additional amount of $600— (A) for himself if he has attained age 65 before the close of his taxable year, and (B) for the spouse of the taxpayer if the spouse has attained age 65 before the close of the taxable year and an additional exemption is allowable to the taxpayer for such spouse under section 151(b). (2) Additional amount for blind The taxpayer shall be entitled to an additional amount of $600— (A) for himself if he is blind at the close of the taxable year, and (B) for the spouse of the taxpayer if the spouse is blind as of the close of the taxable year and an additional exemption is allowable to the taxpayer for such spouse under section 151(b). For purposes of subparagraph (B), if the spouse dies during the taxable year the determination of whether such spouse is blind shall be made as of the time of such death. (3) Higher amount for certain unmarried individuals In the case of an individual who is not married and is not a surviving spouse, paragraphs (1) and (2) shall be applied by substituting “$750” for “$600”. (4) Blindness defined For purposes of this subsection, an individual is blind only if his central visual acuity does not exceed 20/200 in the better eye with correcting lenses, or if his visual acuity is greater than 20/200 but is accompanied by a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees. (g) Marital status For purposes of this section, marital status shall be determined under section 7703.
Official text at uscode.house.gov ↗