What does Preamble of Cost of Living Tax Cut Act do?

This bill, formally titled 'To amend the Internal Revenue Code of 1986 to provide for adjustments in the individual income tax rates to reflect regional differences in the cost-of-living,' aims to modify the Internal Revenue Code of 1986. The bill seeks to adjust individual income tax rates to account for regional cost-of-living variations.

What does SHORT TITLE. of Cost of Living Tax Cut Act do?

This bill is formally titled the Cost of Living Tax Cut Act.

What does REGIONAL COST-OF-LIVING ADJUSTMENTS IN INDIVIDUAL INCOME TAX of Cost of Living Tax Cut Act do?

This section amends section 1(f) of the Internal Revenue Code of 1986 to introduce regional cost-of-living adjustments to individual income tax rates. These adjustments will apply to taxable years beginning after 2026. The rate table will be adjusted based on a multiplier applied to each statistical area, determined annually by the Secretary. Multipliers are based on the cost-of-living differential for each statistical area relative to the national average. Areas with a cost-of-living differential exceeding 125 percent receive a multiplier of 90 percent of that differential. Areas with a differential exceeding 97 percent but not exceeding 125 percent receive a multiplier of 1.05. Areas with a differential not exceeding 97 percent, or those outside the United States, receive a multiplier of 1. The Secretary of Commerce will determine and publish a cost-of-living index for each statistical area, using market prices through August 31 of each year.

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Cost of Living Tax Cut Act

Last updated: 6/8/2026 · Introduced: 6/8/2026

Author: Laura Gillen (D-NY)

TL;DR (AI)

The bill amends the Internal Revenue Code to introduce regional cost-of-living adjustments to individual income tax rates, starting in 2027.
Taxable income rates will be adjusted annually based on a multiplier determined by the Secretary, reflecting each statistical area's cost-of-living differential relative to the national average.
The Secretary of Commerce will publish a cost-of-living index for each statistical area, using market prices through August 31 of each year, to calculate these multipliers.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 1 more.

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