New Tax Law: 7 Changes You Should Know

You’ve likely seen it across headlines: A sweeping new tax law has just been passed. It’s called the One Big Beautiful Bill Act, and it represents one of the most significant overhauls to the tax code in recent years.

Think of it like a home renovation. The 2017 tax cuts laid the foundation – this new law builds on that structure, adding new features and removing others that no longer fit.

It is a controversial bill. Some people support it enthusiastically; others, not so much. But no matter where you land politically, what really matters is how the changes affect you – your taxes, your savings, your financial future.

Here’s a quick breakdown of the key provisions:

1. Tax brackets will stay the same for now. The lower income tax rates and higher standard deductions from 2017 are now permanent. In 2025, the standard deduction increases to $15,750 for single filers and $31,500 for married couples filing jointly.
2. State and local tax (SALT) deduction cap quadruples. The cap on state and local tax deductions jumps from $10,000 to $40,000 in 2025, with annual inflation adjustments through 2029.
3. Seniors get a bigger break. Individuals 65 or older may qualify for an additional $6,000 deduction, based on income.
4. New help for families. The Child Tax Credit increases to $2,200. Additionally, every baby born between 2025 and 2028 will receive a government-funded “Trump Account” to kickstart savings.
5. Student loan system overhaul. Popular plans like SAVE and PAYE are being eliminated. Caps on PLUS loans will be introduced, and the Grad PLUS program ends on July 1, 2026.
6. 529 plans become more flexible. These education savings accounts can now be used for K-12 tuition (up to $20,000), educational therapies, and other expenses.
7. Temporary deductions, vanishing credits. New deductions will apply to tipped income, overtime, and U.S.-made car loans. Meanwhile, tax credits for electric vehicles and clean energy initiatives are being phased out.

This legislation is more than 900 pages long, and not all provisions go into effect at once – some changes begin immediately, while others roll out over the next few years?

What’s the Next Step?

With tax laws this complex and impactful, it’s worth taking a closer look at how the changes could affect your unique financial situation. Whether you’re adjusting your savings strategy, planning around new deductions, or rethinking education expenses, we’re here to help.

If you have questions about how this might impact you, we welcome you to schedule a call with our team, or reach out to your advisor directly.

Bautis Financial LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.