Navigating the New Tax Landscape
The One Big Beautiful Bill Act changed the rules on income taxes, estate planning, business deductions, and retirement strategy. This guide breaks down what changed, what stayed the same, and what it means for your wealth plan.
Important Notice
The One Big Beautiful Bill Act -- a major federal tax law signed in 2025 -- introduced the most significant changes to the U.S. tax code in nearly a decade. Most provisions are already in effect or take effect beginning in 2026. Understanding how this law applies to your situation now, before your next filing, is the difference between reacting and planning.
What Changed
Five Areas of the Tax Code That Affect You Now
The One Big Beautiful Bill Act (OBBBA) touched nearly every corner of the federal tax code. Here is what matters most and what it means in plain language.
Income Tax Planning
More of Your Income Stays in Your Pocket
- Top federal rate of 37% is now permanent -- no scheduled increase
- Standard deduction raised to $15,750 (single) and $31,500 (married filing jointly) -- a deduction you subtract before calculating what you owe
- State and Local Tax (SALT) deduction cap raised to $40,000 through 2029
- New deduction for tip income: up to $25,000 per year
- New deduction for overtime income: up to $12,500 (single) or $25,000 (married filing jointly)
- New auto loan interest deduction: up to $10,000 for qualifying U.S.-assembled vehicles
- Itemized deductions capped at 35% of the amount claimed for higher-income taxpayers
Financial Planning
New Tools for Families and Seniors
- Employer-sponsored dependent care assistance raised to $7,500 per year (up from $5,000)
- 529 education savings plan use for K-12 expenses expanded to $20,000 per year -- 529 plans allow tax-free growth for education costs
- ABLE accounts permanently expanded -- these are tax-advantaged savings accounts for individuals with disabilities
- "Trump Accounts" for children born 2025-2029: $1,000 government seed deposit plus up to $5,000 per year in contributions, growing tax-advantaged until age 18
- New $6,000 above-the-line deduction for taxpayers age 65 and older -- this means you can take the deduction whether or not you itemize
Estate Planning
More Wealth Passes to Your Heirs
- Estate and gift tax exemption raised to $15 million per person ($30 million per married couple) beginning in 2026 -- this is the amount you can pass on without triggering federal estate tax
- Stepped-up basis rule unchanged -- assets still receive a new cost basis at death, reducing capital gains tax for your heirs
- These changes make permanent wealth transfer planning both more accessible and more impactful for high-net-worth households
Business Planning
Permanent Wins for Business Owners and the Self-Employed
- Pass-through deduction (Internal Revenue Code Section 199A) made permanent: eligible business owners can deduct up to 20% of qualified business income
- Qualified Small Business Stock (QSBS) exclusion expanded from $10 million to $15 million -- this is the gain you can exclude when selling stock in a qualifying small business
- 100% bonus depreciation made permanent -- businesses can immediately deduct the full cost of qualifying equipment and assets in the year purchased
- Section 179 expensing limit raised to $2.5 million -- another immediate expensing tool for business assets
- Opportunity zone program updated with new designations and extension of tax incentives
Charitable Planning
Giving Gets a Better Tax Return
- New above-the-line deduction for non-itemizers: $1,000 (single) or $2,000 (married filing jointly) for cash charitable contributions -- you can claim this even if you take the standard deduction
- 60% of adjusted gross income (your total income after certain deductions) cash gift deduction limit made permanent
- Itemized charitable deductions capped at 35% for higher-income taxpayers
- University endowment excise tax expanded -- affects how large university endowments are taxed
Does This Affect You?
Four Questions Worth Asking Yourself
Not every provision applies to every taxpayer. Use these questions to identify where the new law intersects with your situation.
Do you own a business or work as a self-employed contractor?
The pass-through deduction, bonus depreciation, and Section 179 changes may significantly affect your tax picture.
Are you planning to pass assets or a business to your children or grandchildren?
The new $15 million per person estate tax exemption changes what is possible for legacy planning.
Are you 55 or older and thinking about retirement income?
The new senior deduction, Required Minimum Distribution rules, and tax-free retirement income strategies are especially relevant now.
Do you earn overtime pay, tips, or interest on an auto loan for a U.S.-made vehicle?
Three new deductions in this law directly apply to you and may reduce what you owe this filing season.
If you answered yes to any of these, the guide is for you.
Download the Full GuideGet the Full Guide:
Enter your information below and download the complete King Legacy Group guide to the One Big Beautiful Bill Act (OBBBA). Eleven pages of plain-language analysis covering every provision that affects your income, your estate, your business, and your retirement.
Common Questions
Answers to What People Are Asking
The One Big Beautiful Bill Act generated significant confusion. These are the questions King Legacy Group hears most often.
When did the One Big Beautiful Bill Act take effect?
The One Big Beautiful Bill Act (OBBBA) was signed in 2025. Most provisions apply beginning in the 2025 and 2026 tax years. Some changes, like the estate tax exemption increase to $15 million per person, take effect in 2026. Your tax professional can confirm which provisions affect your specific filing situation.
Does this law affect me if I am not a business owner?
Yes. The One Big Beautiful Bill Act includes changes that affect individuals at every income level -- the increased standard deduction, new deductions for overtime and tip income, the senior deduction for those 65 and older, and expanded charitable giving rules all apply to individual taxpayers regardless of business ownership.
Will these tax provisions expire, or are they permanent?
Key provisions have been made permanent under this law, including the 37% top rate, the pass-through deduction (Internal Revenue Code Section 199A), 100% bonus depreciation, and the 60% adjusted gross income limit on charitable gifts. The State and Local Tax (SALT) deduction increase to $40,000 is in effect through 2029 and would require future legislation to extend.
How does the new SALT cap change affect me?
The State and Local Tax (SALT) deduction cap has been raised to $40,000 per year through 2029. This is a significant increase from the prior $10,000 limit put in place by the 2017 Tax Cuts and Jobs Act. Taxpayers in high-tax states -- California, New York, New Jersey, and similar states -- and those who itemize their deductions stand to benefit most from this change.
What is a "Trump Account" and who qualifies?
The term "Trump Account" refers to a new type of tax-advantaged savings account established by this law for children born between 2025 and 2029. The federal government seeds each account with $1,000 at birth. Families can contribute up to $5,000 per year. Funds grow tax-advantaged and can be used for qualifying expenses when the child reaches adulthood. The accounts are officially titled MAGA Accounts in the legislation.
How should I respond to these changes with my overall financial strategy?
Tax law changes create windows of opportunity for those who act with a plan. A complimentary LivingLEGACY™ Strategy Session with King Legacy Group is the fastest way to understand which provisions apply to your income, your business, your estate, or your retirement -- and what the next move looks like for your specific situation.
How King Legacy Group Works
From Confusion to Clarity in Three Steps
You do not need to become a tax expert. You need a strategy built around your actual numbers. Here is how the process works.
Schedule Your Session
Book a complimentary 45-minute LivingLEGACY™ Strategy Session with King Legacy Group. No cost. No pressure. No obligation.
We Review Your Picture
We look at your income, your current tax exposure, your estate, and your retirement strategy in light of the new law. You tell us where you are. We tell you what is possible.
You Leave With a Plan
You leave with a clear understanding of how the One Big Beautiful Bill Act affects you and what the first strategic move looks like. Your LivingLEGACY™ starts with a single intentional decision.
Your LivingLEGACY™ Designed
The tax code changed. Your strategy should too.
A complimentary LivingLEGACY™ Strategy Session with King Legacy Group is 45 minutes. No cost. No pressure. Just a clear picture of how the new law affects your income, your estate, your business, and your retirement -- and what the first move looks like.
Schedule My Strategy ReviewComplimentary. No pressure. No obligation.