01/08/2026
What’s Changing in 2025 Under the “One Big Beautiful Bill”
What’s staying the same:
Individual tax brackets remain at 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
The 20% Qualified Business Income (QBI) deduction for self-employed individuals and small business owners has been permanently extended.
Mortgage interest deductions continue to be limited based on lower loan amounts.
What’s going away:
Certain energy-efficient home improvement credits (such as windows, doors, and solar installations) are set to sunset after 2025.
The electric vehicle credit (up to $7,500) will no longer apply to EVs purchased after September 30, 2025.
What’s new for 2025:
Increased standard deduction:
$15,750 for Single
$23,625 for Head of Household
$31,500 for Married Filing Jointly
Deduction for qualified car loan interest, up to $10,000 (available for tax years 2025–2028).
No tax on qualified tips, up to $25,000 (2025–2028).
No tax on qualified overtime income, up to $12,500 (2025–2028).
Expanded Child Tax Credit permanently increased to $2,200 per qualifying child under age 17 (income and SSN requirements apply).
Increased SALT deduction cap raised from $10,000 to $40,000 for 2025, with additional increases planned through 2029 (phaseout begins above $500,000 income).
Enhanced senior deduction of up to $6,000 for taxpayers age 65 and older (2025–2028).