Skip to main content
Skip to main content

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS
A lock ( ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

Cover consists of a photo collage depicting a couple in a farm setting examining paperwork with images of Federal income tax forms superimposed.

Estimated Effects of the Tax Cuts and Jobs Act on Farms and Farm Households

  • by James Williamson
  • 6/28/2018
  • ERR-252

Overview

The Tax Cuts and Jobs Act of 2017 made significant changes to the Federal income tax system. According to an ERS analysis of the potential impact of the law on family farms, average tax rates are expected to decline across all farm sizes and commodity specializations, with effects on farm households varying by farm size. Estimates also suggest fewer farm estates will be subject to estate tax.

Errata: On March 25, 2019, the report Estimated Effects of the Tax Cuts and Jobs Act on Farms and Farm Households (ERR-252, June 2018) was reposted to correct the simulated effective tax rate under the 2017 Tax Cuts and Jobs Act (TCJA) for very large farms. The corrected rate—31.2 percent—was applied to the underlying data for the report summary chart, table 5, and the calculated difference between the simulated TCJA rate and the effective tax rate under the previous law. The associated text referencing the absolute rate was also revised.

Download