If you've heard the buzz about the One Big Beautiful Bill, you might be wondering what it means for you. Signed into law on July 4, 2025, this new domestic policy package extends key parts of the 2017 Tax Cuts and Jobs Act (TCJA) and introduces several new tax rules that could affect individuals, families, and small businesses in the years ahead.
While some changes take effect right away, others will roll out in 2026 or later. A few are even temporary. So, now's a great time to connect with your tax, legal, or accounting professional to see how these updates might shape your financial picture.
Let's take a look at some of the highlights of this bill that could impact most taxpayers.
The current tax brackets aren't changing under the One Big Beautiful Bill. The bill extends the current 12%, 22%, 24%, 32%, and 37% tax rates, which were originally set to expire. Without this extension, rates would have reverted back to higher pre-2017 levels at 15%, 25%, 28%, 33%, and 39.6%. The sixth tax bracket remains unchanged at 35%.1,2
This means a bit more predictability as you plan your finances for the next few years.
Starting in 2025, the standard deduction increased slightly to $15,750 for single filers and $31,500 for joint filers. Starting in 2026, it will adjust automatically for inflation each year, which might be a helpful cushion for most taxpayers.1,2
If you've been keeping an eye on the State and Local Tax (SALT) deduction, there's an update:
This change could offer short-term relief for taxpayers in higher-tax states.
Note: SALT has a $50,000 threshold for single and married filers.1,2
The new "bonus" deduction for older Americans has received a lot of attention since the One Big Beautiful Bill Act became law. Here's what's changing for seniors with the new bill.
Beginning in 2025, the bill provides a $6,000 bonus deduction for Americans aged 65 and older, in addition to the standard deduction available to all taxpayers. The new rule will also affect unmarried/non-surviving spouses. The deduction begins to phase out for individuals with incomes starting at $75,000 a year, or joint filers earning $150,000 a year. It phases out entirely for individuals earning more than $175,000 a year, and couples earning $250,000 a year.
Note: This bonus deduction is temporary and is set to expire in 2028.1,2
Starting in 2025, the Child Tax Credit increases from $2,000 to $2,200 a will now include cost-of-living adjustments to help offset inflation.
Coming in 2026, families can save more with an expanded Dependent Care Flexible Spending Account limit, increasing from $5,000 to $7,500. The maximum percentage of qualified dependent care expenses also jumps from 35% to 50%.1,2
A new initiative introduces a one-time $1,000 deposit for every baby born between 2025 and 2028. Parents can contribute up to $5,000 annually, but funds can't be withdrawn until the child turns 18.1,2
Starting in 2026, 529 education savings plans can cover non-tuition expenses for elementary and secondary school, and that annual tuition cap doubles from $10,000 to $20,000.1,2
Between 2025 and 2028, taxpayers can deduct up to $10,000 in new car loan interest, but only for brand-new vehicles first assembled in the United States1,2. This deduction phases out for individuals earning above $100,000 a year, or couples earning above $200,000 a year.
Some energy-efficient home improvement credits (like adding solar to your home) and EV tax credits will end after December 31, 2025. Additionally, EV credits for new and used cars end after September 30, 2025, so plan accordingly if you're considering home upgrades or electric vehicle purchases.1,2
The One Big Beautiful Bill makes permeant the up to 20% Qualified Business Income (QBI) deduction for sole proprietorships, partnerships, and S corporations.1,2
Businesses can once again fully expense 100% of capital and factory investments made on or after January 19, 2025. This is intended to help fuel reinvestment and growth; however, some limitations may apply.1,2
Tax law changes can feel overwhelming, and this new legislation adds a lot of moving parts. While some updates may simplify your filing, others could create new planning opportunities or challenges.
Your best approach is to be proactive. Schedule an appointment to talk with your tax, legal, or accounting professional before making any financial decisions. They can help you take advantage of new deductions, credits, and benefits under the One Big Beautiful Bill.
As always, Logix is here to help you stay informed and confident in your financial journey.
>> Connect with our team today to learn more!
1. CNBC.com, July 3, 2025.
2. Congress.gov, August 21, 2025.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.