For most of 2025, the biggest question in tax planning was whether the 2017 Trump tax cuts would expire on schedule at the end of the year.
That question has been answered. On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law, making the core individual provisions of the Tax Cuts and Jobs Act (TCJA) permanent — and layering several new deductions on top. The across-the-board tax increase that had been scheduled for January 1, 2026 never happened.
Here's what's now permanent, what's temporary, and what it means for your planning in 2026 and beyond.
What the OBBBA Made Permanent
- The seven TCJA tax brackets — 10%, 12%, 22%, 24%, 32%, 35%, and 37% — are now permanent, with an extra inflation adjustment applied to the 10% and 12% brackets starting in 2026.
- The higher standard deduction is permanent: $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household in 2026, indexed for inflation going forward.
- The 20% qualified business income (QBI) deduction for pass-through business owners is permanent.
- The estate and gift tax exemption rises to $15 million per person ($30 million per married couple) in 2026 and is indexed for inflation.
- The mortgage interest deduction stays capped at the first $750,000 of qualifying debt, and mortgage insurance premiums become deductible again starting in 2026.
- The child tax credit increases to $2,200 per child and is indexed for inflation.
- 100% bonus depreciation is restored permanently for qualifying business property.
- Personal exemptions and most miscellaneous itemized deductions remain permanently eliminated.
What's New — But Temporary
- A much higher SALT cap (2025–2029): The state and local tax deduction cap jumped from $10,000 to $40,000 for 2025 and $40,400 for 2026, rising about 1% per year through 2029. The higher cap phases down by 30% of modified AGI above roughly $500,000 ($505,000 in 2026), but never below $10,000 — and the whole cap reverts to $10,000 in 2030.
- An extra senior deduction (2025–2028): Taxpayers 65 and older can take an additional $6,000 deduction, phasing out above $75,000 MAGI ($150,000 for joint filers).
- Deductions for tips and overtime (2025–2028): New deductions for qualified tip income and overtime premium pay, subject to caps and income limits.
- Car loan interest (2025–2028): A deduction for interest on loans for new U.S.-assembled vehicles, subject to income limits.
Who Comes Out Ahead?
Households in high-tax states get the most immediate change: the SALT window through 2029 makes itemizing worthwhile again for many filers who've taken the standard deduction since 2018 — as long as their income stays below the phase-down threshold.
Retirees 65 and older benefit from the temporary $6,000 senior deduction, and tipped and overtime workers get new deductions through 2028.
Business owners gain long-term certainty: the QBI deduction and 100% bonus depreciation are permanent, which makes multi-year planning and capital investment decisions far more predictable.
Wealthy families see the estate and gift exemption locked in at $15 million per person — the pre-2026 urgency to complete large gifts has been replaced by a question of whether existing estate plans still reflect the new, permanent numbers.
Critics note the law's cost — independent estimates put the revenue reduction in the trillions of dollars over the next decade — and that the largest dollar benefits flow to higher earners. Supporters counter that it prevented a broad tax increase on nearly every bracket. Either way, the planning environment is now far more certain than it was a year ago.
5 Planning Moves for 2026 and Beyond
1. Re-run the itemize-vs-standard-deduction math
If you're in a high-tax state and under the SALT phase-down threshold, itemizing may beat the standard deduction for the first time in years. The window runs through 2029 — consider timing property tax payments before the cap reverts to $10,000 in 2030.
2. Refresh your estate plan
The $15 million per-person exemption is permanent and indexed. Make sure trusts and gifting strategies built around the old sunset still make sense.
3. Rethink the Roth conversion calculus
The "convert before rates jump in 2026" argument is gone — rates are locked in. Roth conversions can still make sense, but now it's about your personal bracket trajectory, not a legislative deadline.
4. Keep clean records for the new deductions
Tips, overtime premium pay, senior deduction eligibility, and vehicle loan interest all come with documentation requirements, caps, and income phase-outs. Good records determine whether you actually capture them.
5. Talk to a tax professional
Several provisions interact — phase-outs, expiration dates, and filing-status quirks — and the right move depends on your income, business structure, and state. This article is general information, not tax advice.
Track the Impact on Your Net Worth with Kubera
Maintaining visibility across your entire financial landscape is crucial when tax rules shift. Kubera offers a comprehensive solution with features designed for strategic financial management:
- Comprehensive Net Worth Tracking: Consolidate all financial accounts — banking, investments, crypto, real estate, and custom assets — into one dashboard for a real-time view of your complete financial picture.
- Investment Performance Monitoring: Track your portfolio's performance with Internal Rate of Return (IRR) calculations, helping you understand which investments are performing best under current tax conditions.
- Fast Forward Projections: Simulate different scenarios — like itemizing vs. taking the standard deduction, or accelerating capital investments — and visualize outcomes before you commit.
- Diversified Asset Management: Track all wealth sources from stocks and ETFs to real estate, crypto, private equity, and collectibles.
For those with complex financial structures, Kubera Black offers premium features tailored to sophisticated wealth management:
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- VIP Service: Receive personalized onboarding, premium support, and early access to new features.
Start your journey with a 14-day trial of Kubera or explore Kubera Black for enhanced features designed for high-net-worth tracking.
The Bottom Line
The One Big Beautiful Bill Act ended nearly a decade of "will they expire?" uncertainty by cementing the TCJA framework into permanent law and adding a set of temporary deductions with their own clocks. For most Americans, that means continuity: the rates and standard deduction you've had since 2018 are here to stay. For high earners, business owners, and estates, it means the planning assumptions that were built around a 2026 sunset need a fresh look.
Whatever your situation, proactive planning beats reaction. Consult a qualified tax professional, keep your full financial picture in view, and revisit the temporary provisions — especially SALT — before their windows close.
This article is for general informational purposes only and does not constitute tax, legal, or financial advice. Consult a qualified professional about your specific situation.
