Although the US tax code does not explicitly reference race or ethnicity, the federal income tax system contributes to racial disparities when factors that affect tax liabilities are correlated with race. This study is the first to use the Tax Policy Center’s microsimulation model—newly enhanced with race and ethnicity imputations—to analyze the disparate impacts of policy changes to the individual income tax on Black, Hispanic, White, and other families. We consider three policy options that could help mitigate racial disparities in income and wealth.