Tax changes under Trump’s OBBB

Key Individual Tax Changes from Trump’s One Big Beautiful Bill

Current law vs. final legislation: The table shows changes to current tax policy per Congress’s 2025 proposed tax and spending measure.

Provision	Current Law	Final Legislation
Standard deduction	$15,000 single; $30,000 married filing jointly for 2025	$15,750 single; $31,500 married filing jointly for 2025
'Bonus' deduction for older adults	$1,600 for age 65+; $2,000 unmarried/not surviving spouse (2025)	$7,600 for age 65+; $8,000 unmarried/not surviving spouse (2025–2028)
State and local tax deduction (SALT)	$10,000 limit through 2025	$40,000 limit for 2025; increases 1% annually through 2029; reverts to $10,000 in 2030
Child tax credit	Max $2,000 per child; $1,700 refundable (2025)	Max $2,200 per child; $1,700 refundable (2025)
Estate and gift tax exemption	$13.99M single; $27.98M married filing jointly (2025)	$15M single; $30M married filing jointly (2026)
Tax on tips	N/A	Deduct up to $25,000/year (2025–2028)
Overtime pay	N/A	Deduct up to $12,500 per taxpayer (2025–2028)
Auto loan interest	N/A	Deduct up to $10,000/year on new loans (2025–2028)
Trump Accounts for child savings	N/A	One-time $1,000 credit per child born (2025–2028)
Charitable deduction for non-itemizers	N/A after 2021	$1,000 single; $2,000 married filing jointly; permanent after 2025