Key TCJA Provisions Made Permanent in OBBBA

When the House passed the "One Big Beautiful Bill Act" (OBBBA) in May 2025, it marked a pivotal moment for tax policy. Several key elements of the 2017 Tax Cuts and Jobs Act (TCJA), originally set to expire, are now permanent. For individuals and families, this means a more stable foundation for tax planning, with fewer surprises and more opportunity for long-term strategy.

The Expanded Standard Deduction Is Here to Stay

One of the most impactful changes made permanent by OBBBA is the expanded standard deduction. Initially introduced by TCJA, this nearly doubled deduction simplified filing for millions of taxpayers—and now it's permanent.

• 2025 deduction levels:

  • $13,850 for single filers

  • $27,700 for married couples filing jointly

  • Temporary boosts remain in effect through 2028

This gives individuals and families the ability to plan around a consistent baseline and helps reduce the need for itemizing.

Locking in Individual Tax Brackets

The individual income tax brackets enacted under TCJA were set to expire, but OBBBA makes them permanent:

• The top marginal tax rate holds steady at 37%

• Brackets continue to adjust annually for inflation (excluding the top bracket)

This consistency allows for clearer projections when making decisions around income timing, retirement withdrawals, and long-term investment planning.

High Earners Can Now Fully Itemize

TCJA suspended the Pease limitation, which phased out itemized deductions for high earners. OBBBA makes this repeal permanent. That means:

• High-income filers can now claim full deductions for:

  • Charitable contributions

  • Mortgage interest

  • State and local taxes (within the SALT cap)

This is particularly beneficial for taxpayers who routinely donate, own property, or pay significant state income taxes.

Estate and Gift Tax Exemptions Rise

OBBBA expands on TCJA’s groundwork by increasing estate and gift tax exemptions, effective 2026:

• New exemption: $15 million per individual / $30 million per couple

• Up from approximately $13 million in 2025 under the TCJA

This boost gives families more room to make large financial gifts or transfers without triggering estate tax liability.

What This Means for Your Tax Strategy

These changes offer a practical upside for taxpayers who want to think ahead:

• Simpler decision-making around whether to itemize

• Predictable tax brackets for income planning

• Clearer guidance for charitable giving and inheritance planning

• Improved accuracy in tax forecasting and budgeting

“According to the IRS, nearly 90% of individual filers now take the standard deduction—an enormous shift from the pre-TCJA era.” (Source: IRS Statistics of Income, 2023)

More Predictability, Less Guesswork

By eliminating sunset provisions and locking in these tax changes, OBBBA offers long-term clarity. Whether you're preparing for retirement, managing a business, or just trying to make the most of your tax position, this stability allows for smarter decisions year after year.

TaxMaster, Inc., can help you apply these new rules to your personal or business tax strategy. Call us at 718-326-0500 (Glendale) or 631-673-0617 (Melville) or reach out through our contact form at https://www.taxmasterinc.com/contact to schedule a consultation.