To provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70412, Sec. 70412.
Written by .
The $5,250 cap rises with prices from 2027
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70412 in the PDF
What the document says
“In the case of any taxable year beginning after 2026, both of the $5,250 amounts in subsection (a)(2) shall each be increased by an amount equal to--”
The section inserts a new subsection (d) into section 127 of the Internal Revenue Code of 1986 so that from a taxable year beginning after 2026 both $5,250 amounts rise by a cost of living adjustment measured from calendar year 2025, with any increase rounded to the nearest $50.
What the document actually says
“In the case of any taxable year beginning after 2026, both of the $5,250 amounts in subsection (a)(2) shall each be increased by an amount equal to--”
That sentence, in plain words
From a tax year that begins after 2026 the two figures grow. Both are set at $5,250 now. The way they grow follows below.
What this is about
The rise follows a price measure in the tax code. Any rise is rounded to the nearest $50. Before 2027 the figures stay put.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Provide for reconciliation pursuant to title II of H. Con. Res. 14, Public Law 119-21, sec. 70412, 139 Stat. 218 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
This page
“The $5,250 cap rises with prices from 2027,” Provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70412, Sec. 70412. Read the Mandate, https://readthemandate.org/pl-119-21/proposal/sec70412-inflation/ (retrieved October 10, 2026).
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