The “One Big, Beautiful Bill” (OBBBA) introduces a wide range of permanent and temporary tax changes that may affect your income, savings, deductions, and long-term financial planning. If you’re feeling unsure about how this new law applies to you, you’re not alone. These updates go well beyond political headlines—they're real changes that may influence your financial strategy no matter your age, income level, or profession. This overview will help you start thinking through what the OBBBA could mean for you and where to take action.

Income Tax, Deductions & Credits

The lower income tax brackets introduced under the TCJA are now permanent, and the income thresholds for these brackets have been updated. You may notice continued tax relief if your income falls within these adjusted ranges.

The standard deduction remains higher than pre-TCJA levels and will continue to be adjusted annually for inflation—helpful if you typically don’t itemize.

The Child Tax Credit has been revamped, with both refundable and nonrefundable portions. Depending on your household income, you may qualify for expanded benefits or be subject to phaseouts.

One notable new perk is the $10,000 car loan interest deduction. You may benefit if you purchase a qualifying vehicle assembled in the U.S. Be sure to review eligibility if you’re considering a new car.

If you work in a tipping profession, the temporary tax break on up to $25,000 in tip income could offer meaningful relief. A list of qualifying occupations is expected soon.

For those in high-tax states, the SALT deduction cap has increased to $40,000. This may help reduce your tax burden—unless your income is high enough to fall into the phaseout range.

Wealth Transfer, Investment & Retiree Provisions

Retirees may benefit from a temporary $6,000 “Senior Bonus” deduction, depending on income. This could offer additional relief during retirement.

Estate, gift, and generation-skipping transfer tax exemptions have been permanently raised to $15 million, creating new planning opportunities for families with significant assets.

The capital gains brackets are now inflation-adjusted, which may help you stay in a lower tax range and keep more of your investment gains over time.

There’s also permanent relief from the AMT. While this is good news for many households, higher-income earners may still see a quicker phaseout.

Other Noteworthy Changes

A major shift in Medicaid includes $1 trillion in funding cuts, plus new work or volunteer requirements and stricter eligibility rules. You or someone you know may want to review current benefits and prepare for possible changes.

The OBBBA also creates new “Trump Accounts” for eligible children—tax-advantaged accounts with defined contribution limits and investment options. These may become an important savings tool for families.

Clean energy and EV tax credits are set to phase out soon. If you’ve been considering an electric vehicle or energy‑efficient home improvements, acting sooner rather than later may make a big difference.

Taking the Next Step

The One Big, Beautiful Bill affects a wide range of people—from low‑income families to retirees and high‑net‑worth investors. With a mix of permanent rules and temporary incentives, it’s important to understand how these changes fit into your financial life. Rather than waiting until tax season, now is a great time to re-evaluate your tax strategy, review new opportunities, and identify any risks.

If you’re unsure where to start or want personalized guidance, consider reaching out to a financial advisor or tax professional who can help you navigate the specifics of your situation.