Update on the “One, Big, Beautiful Tax Bill”

Tax brackets ranging from 10%-37% set to revert to pre-2017 rates, including top rate of 39.6%.

Make the expiring individual provisions from the TCJA permanent. Top rate of 37%, except for inflation adjustment for 12% and 22% brackets.

Increased standard deduction is set to expire after December 31, 2025.

Makes nearly doubled standard deduction permanent. Raises base standard deduction amounts to $23,625 (head of household), $31,500 (married), and $15,750 (single).

$10,000 Cap on SALT Deduction.

Proposes a temporary increase to the SALT deduction cap of $40,000 with phaseout based on income exceeding $500k+ (minimum deduction floor of $10k), becoming $10,000 in 2030. PTET is not addressed.

No deduction for auto loan interest.

Up to $10,000 deduction for qualified vehicle loan interest. Phases out above $100k MAGI ($200k for married) and phases out completely at $150k ($250k for married). Available 2025-2028, applies only to certain qualifying vehicles that were assembled in the U.S. and not purchased for commercial or resale purposes.

Tips are considered taxable income.

Creates above-the-line deduction up to $25,000 for qualified tips received by an employee, phased out above $150,000 MAGI ($300k for married). Available 2025-2028.

Credit will decrease from $2,000 to $1,000 per child.

Permanent increase to $2,200 per child beginning in 2025.

Overtime pay is considered taxable income.

Creates an above-the-line deduction up to $12,500 ($25,000 for joint return) for overtime pay for employees, phased out above $150,000 MAGI ($300k for married).

No enhanced deduction for seniors.

$6,000 deduction for seniors (age 65+) with AGI below $75,000 ($150,000 joint), available 2025-2028.

Bonus depreciation is presently 40% and scheduled to decline to 20% for 2026.

100% immediate expense for qualified property acquired on or after January 19, 2025, no scheduled sunset.

Requires deduction over a 39-year period.

Allows 100% depreciation deduction for property placed in service Jan. 19, 2025 - Jan. 1, 2029; placed in service after enactment and before 1/1/2031 (2-year extension for Acts of God).

Temporary policy to reduce taxes on capital gains in distressed areas.

Creates a permanent OZ policy that builds off the original, with new designations every 10 years.

No current tax credit.

New tax credit for contributions to organizations that provide scholarships to K-12 students. The credit allowed to a taxpayer for a taxable year may not exceed the greater of 10 percent of the taxpayer’s AGI or $5,000.

Tax-free withdrawals for tuition, K-12, books, supplies, other qualified expenses.

Similar provision, some language changes.

Itemized deduction only for losses from federally declared disasters set to return after Dec. 31, 2025.

Permanently allows for the itemized deduction for only personal casualty losses resulting from federally declared disasters and expands the provision to include certain state-declared disasters.

Individuals will be permitted to deduct until after Dec. 31, 2025.

Permanently eliminates miscellaneous itemized deductions and removes unreimbursed employee expenses for eligible educators.

$750,000 cap for mortgage interest, to rise to $1 million after 2025.

Permanently lowers cap to $750,000 of debt. Additionally, treats certain mortgage insurance premiums on acquisition indebtedness as qualified residence interest.

No reduction applies

Beginning in 2026, high-income taxpayers must reduce their itemized deductions by 2⁄37% of the lesser of (1) total itemized deductions or (2) the amount their income exceeds the 37% tax bracket threshold.

No AGI-based floor on charitable contributions—eligible donations are deductible up to applicable percentage limits, without requiring contributions to exceed a minimum threshold.

Beginning in 2026, individual taxpayers can only deduct charitable contributions to the extent they exceed 0.5% of their AGI (contribution base)—a new “floor” that reduces the value of smaller donations. Contributions that do not exceed this floor are disallowed but may be carried forward to future years under modified carryover rules.

20% deduction expires after 2025.

Makes permanent but stays at 20%.

Separate accounts for spouses.

Not addressed in Senate.

Indexed annually.

Not addressed in Senate.

Form 1099-K required for payments exceeding $2,500.

Modifies requirements to exempt where more than $20,000 or 200 transactions.

$600 threshold.

Raises to $2,000 and indexed for inflation after 2024.

Excise tax of 1.39%.

Not addressed in Senate.

Excise tax of 1.4%.

Amends to tiered system based on student assets. 
$500k-$749k: 1.4%, $750k-$1.99M: 4%, $2M+: 8%.

Credits currently available.

Extends home improvement credits, ends EV credits after 2025, tightens clean energy credits after 2025 but with some phaseout differences.

Partial exclusion of gain of QSBS held for more than five years.

The provision allows a 50% exclusion after three years, 75% after four years and 100% after five years. Also, the proposal increases the per-issuer dollar cap to $15 million for post-enactment shares, indexed to inflation beginning in 2027. For stock issued after the applicable date, the corporate-level aggregate-asset ceiling is increased to $75 million, indexed to inflation beginning in 2027.

No current tax.

Proposed a 1% excise tax only on remittance transfers funded with physical instruments such as cash, money orders, or cashier’s checks. Transfers funded by U.S. bank accounts, brokerage accounts, debit cards, or credit cards are expressly excluded.

$13.9M estate/generation-skipping exemption, expires 2025.

Makes permanent, increases to $15M indexed for inflation.