The U.S. OBBB Act Tax Highlights
Since July 4, 2025, when President Trump signed the One Big Beautiful Bill Act (OBBB Act), key tax reforms for individuals and small-business owners have started rolling out. We’ll break down each provision to help you stay informed and optimize your tax strategy.
🌟 OBBB Act Tax Highlights – Permanent Brackets + New Deductions
- Permanent Tax Rates & Standard Deduction
Effective July 4, 2025, the Act makes the TCJA’s seven individual income tax brackets (10%–37%) permanent, while keeping the higher standard deduction and removing personal exemptions
- New Temporary Deductions (2025–2028):
1. Tip Income – Deduct up to $25,000
2. Overtime Pay – Deduct up to $12,500 ($25K joint)
3. Car Loan Interest – Deduct up to $10,000 for loans on U.S.-assembled new vehicles
4. Senior Bonus – Additional $6,000 for those aged 65+
These deductions are available whether you itemize or opt for the standard deduction.
⚖️Why It Matters
- Individuals: Permanent rate structure offers tax stability; deductions benefit tipped workers, overtime earners, car buyers, and seniors.
- Small-Business Owners: Even as these focus on personal income, the predictable tax system supports better forecasting and planning.
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