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Changes to the One Big Beautiful Bill Act

August 12, 2025

The One Big Beautiful Bill Act: Key Tax Changes Starting 2025 

EVERYONE 👍 Standard deduction increases to $15,750 for single filers, and $31,500 for those filing jointly. State and local tax (SALT) deduction increases to $40,000 (temporary)

👥 SENIORS (65+) $6,000 bonus deduction (2025-2028)

👨‍💼 WORKERS 👨‍💼 No tax on tips (up to $25,000) No tax on overtime (up to $12,500 single filer/$25,000 married filing jointly)

🏢 BUSINESS OWNERS 20 percent qualified business income deduction is now permanent 100 percent capital expensing restored

👨‍👩‍👧‍👦 FAMILIES 👨‍👩‍👧‍👦 Child tax credit increases to $2,200 Dependent care limits increase to $7,500

🏡 ESTATE MANAGEMENT Exemption increases to $15 million/$30 million (starts 2026) IMPORTANT: Some of these changes are temporary (2025-2028). Consult a tax professional for your specific situation.

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