Big Individual Tax Changes from Trump’s Big Beautiful Bill
Congress has officially passed President Donald Trump’s massive tax and spending bill — and it’s now on his desk, just one signature away from becoming law.
Big Beautiful Bil locks in the 2017 tax cuts, adds new perks for seniors, boosts the child tax credit, and increases the deduction for state and local taxes (SALT). The bill also throws in new deductions for overtime, tips, and even car loan interest. A new tax-free savings account for kids is also part of the mix.
Here’s a simple chart showing how the current law compares with the Senate version of the bill (the one headed for Trump’s signature). These changes mostly kick in for 2025 and beyond.
Key Tax Changes – Current Law vs. Final Legislation
| Tax Provision | Current Law | Final Legislation |
| Standard Deduction | Single: $14,600 Head of Household: $21,900 Married Joint: $29,200 | Single: $15,750 Head of Household: $23,625 Married Joint: $30,000 (all indexed annually) |
| Tax Brackets | 10%–37% (bracket ranges revert in 2026) | Same brackets; threshold amounts slightly increased and adjusted for inflation |
| Child Tax Credit | $2,000 per child; $1,700 refundable in 2024 | $2,200 nonrefundable per child (indexed for inflation), $1,400 refundable made permanent. |
| SALT Deduction Cap | $10,000 cap through 2025 | Raised to $40,000 through 2029; phased out for high-income earners |
| Senior Deduction | None | New $6,000 above-the-line deduction for seniors 65+ (phased out over $150,000 MFJ / $75,000 others) |
| Tip Income Deduction | Fully taxable | Deduction up to $25,000 for tips (phased out over $150,000 income) |
| Overtime Deduction | Fully taxable | Deduction up to $12,500 for qualifying overtime (phased out over $150,000 income) |
| Auto Loan Interest | Not deductible | Deduction up to $10,000/year for U.S.-assembled personal vehicles; phased out over $200K (MFJ) / $100K (others) |
| Estate & Gift Exemption | $13.61 million (2024); drops after 2025 | Increased to $15 million starting 2026, indexed for inflation |