How Can the Big Beautiful Bill Help on My Taxes?

What can the Big Beautiful Bill do to help me with my taxes?

One key feature in the One Big Beautiful Bill Act is the extension and revision of some of the tax laws that were part of the 2017 Tax Cuts and Jobs Act (TCJA). Here’s a quick summary of the three changes we found the most interesting:

Extension of Tax Rates

The bill extends the current tax rates of 12 percent, 22 percent, 24 percent, 32 percent and 37 percent, respectively. If the TCJA expired, the rates were scheduled to revert back to 15, 25, 28, 33 and 39.6 percent. 

Standard Deduction

It also increased the standard deduction to $15,750 for single filers and $31,500 for those filing jointly for 2025. Both are a slight increase from the current rate. Note: The standard deduction will be adjusted for inflation starting next year.

State and Local Tax Deduction (SALT)

Big change here. The SALT is increasing to $40,000 in 2025, and will increase 1 percent annually until 2030. But in 2030, the SALT will revert to $10,000. Note: SALT has a $500,000 threshold for both single and married filers.

Having some familiarity with the updated tax rules can only help when managing personal finances. Of course, it’s important to also consider working with a tax professional before making any changes to your tax strategy. If you want more information, please reach out.