What the One Big Beautiful Bill Act Means for Your 2025 and 2026 Taxes

The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, made the largest changes to the tax code since 2017 — and most of them are already in effect. The individual tax rates and brackets from the Tax Cuts and Jobs Act are now permanent, and the standard deduction has been raised again ($15,750 for single filers, $23,625 for heads of household, and $31,500 for married couples filing jointly in 2025, indexed going forward).

Several brand-new deductions are available through 2028: a deduction for qualified tip income, a deduction for overtime pay, and an additional $6,000 deduction for taxpayers age 65 and older. The SALT deduction cap has also been raised to $40,000 for most households.

If you filed an extension for your 2025 return, the October 15 deadline is approaching — and if you make estimated payments, your third-quarter payment is due September 15. These new deductions may change what you owe. Contact our office to make sure you’re not leaving money on the table.