H.R.9179

Adjusts individual income tax rates based on regional cost-of-living differences.

The Cost of Living Tax Cut Act amends the Internal Revenue Code to adjust individual income tax rates according to regional cost-of-living differences. It defines "statistical area" to include metropolitan statistical areas and non-metropolitan areas. The Secretary of Commerce will determine a cost-of-living index for each statistical area based on average market prices for the 12-month period ending August 31. The tax rate table will be adjusted using multipliers based on the cost-of-living differential for each area. The adjustments apply to taxable years beginning after December 31, 2026.