President Trump is no stranger to big changes in tax policy, and one of his proposals is perhaps his most audacious: the elimination of the federal income tax. While this hasn’t come to pass yet, it’s possible that he could try to find a way to make it work. It’s an interesting proposition now, during tax season 2026, when you sit down to file the 2025 tax year.
Federal taxes take the biggest bite out of your earned income because they pay for many important programs and services. Still, who wouldn’t enjoy being free of this huge chunk of tax? Though people at any income level could see relief if they didn’t have to pay federal income tax, it really starts to pay off at higher levels. Here, we’ll break down how much someone earning $250,000 a year would keep if this policy actually happened.
