Income Tax Rates: What Didn’t ChangeOne of the biggest moves in the new law is making permanent the lower income tax rates created in 2017. Instead, the bill locks them in — meaning no increase in income tax rates for most taxpayers simply because the law sunsets. What taxes count under SALTTaxpayers must make choose between whether they plan to take the dedication for state and local income taxes paid or for state and local sales taxes paid. You cannot deduct both income taxes and sales taxes. Tips and Overtime: New Deductions for WorkersTwo temporary deductions target workers whose income includes extra pay.