What’s Now Locked In: Permanent Tax Rules Going Forward
2017 Tax Brackets Made Permanent: The reduced income tax brackets first introduced under the 2017 law are now permanent, including the top rate remaining at 37% instead of reverting to 39.6%.1
Standard Deduction Remains Elevated: The larger standard deduction — $15,750 for single filers and $31,500 for married couples in 2025 — won’t roll back to pre-2017 levels. This simplifies filing for many taxpayers and reduces the need to itemize.2
Bigger Break for Pass-Through Business Owners: Owners of LLCs, S-Corps, and sole proprietorships will continue receiving a deduction for qualified business income, now increased from 20% to 23%. The phase-out for high earners has also been softened.3
Estate and Gift Tax Exemption Cemented: The exemption rises to $15 million per individual in 2026 and will remain in place moving forward, avoiding the steep drop originally scheduled for 2026.4
Temporary Tax Changes You May Benefit From
Extra Deduction on Top of the Standard Amount: For tax years 2025 through 2028, filers will receive an additional deduction:5
- $1,000 for individuals
- $1,500 for heads of household
- $2,000 for married couples filing jointly
Tip and Overtime Income Now Partially Exempt: Workers can deduct up to $25,000 in annual income earned from tips or overtime. This phases out for individuals earning over $150,000 and married couples over $300,000, and is set to expire after 2028.6
Child Tax Credit Increased and Indexed to Inflation: The credit rises to $2,200 per child and will now adjust annually for inflation starting in 2026, avoiding the planned drop to $1,000 under previous law.7
New Deduction for Seniors: Taxpayers age 65 and older with modified adjusted gross income under $75,000 (or $150,000 for joint filers) can take an extra $6,000 deduction from 2025 through 2028.8
Auto Loan Interest Now Deductible (For Some): Taxpayers with income under $100,000 ($200,000 for joint filers) can deduct up to $10,000 in interest paid on qualifying auto loans — but only for vehicles assembled in the US. This deduction ends after 2028.9
SALT Deduction Relief — But Only for a Few Years
Temporary Increase to SALT Cap: The cap on state and local tax (SALT) deductions has been temporarily lifted. Starting in 2026, the cap increases from $10,000 to $40,000, with a modest 1% annual adjustment. However, this expansion only lasts through 2029 — after which the cap returns to $10,000 permanently.10
Short-Term Win for High-Tax States: This change offers a window of relief for taxpayers in high-cost areas like California, New York, New Jersey, and Washington. Middle- to upper-middle-income homeowners in those regions stand to gain the most from the expanded deduction before it reverts.
New Rules Affecting Healthcare, Education, and Clean Energy
Medicaid Work Requirement Becomes Law: Most adults without disabilities must now work a minimum of 80 hours per month to maintain Medicaid eligibility. Exceptions apply to seniors and parents of young children.11
Debt Ceiling Raised: The bill also increases the federal borrowing limit by $5 trillion, granting the government more room to finance spending initiatives without default risk.12
Clean Energy Incentives Pulled Back: Tax breaks for electric vehicles, solar panels, and other green energy investments are being phased out faster than originally scheduled. If you were planning to take advantage of those credits, now’s the time to double-check eligibility.13
529 Plans Get a Boost: Families can now use up to $20,000 per year from 529 plans to cover K–12 tuition, tutoring, testing fees, and educational therapy services — a significant expansion in how these accounts can be used.14
HSA Access Expanded: Several key updates improve Health Savings Account flexibility starting in 2026:15
- HSAs are now compatible with all Bronze and Catastrophic Exchange plans.
- First-dollar telehealth services remain covered.
- Direct primary care services can be paid for tax-free using HSA funds.
A New Savings Tool: “Trump Savings Accounts” for Newborns
Government-Funded Accounts at Birth: Children born through 2028 will receive a $1,000 seed investment into a federally backed “Trump Savings Account.” Families can contribute up to $5,000 annually, and employers or nonprofits may also contribute.16
Please Note: These accounts grow tax-deferred, convert into IRAs at age 18, and are designed to promote long-term savings from birth into adulthood.17
Utah’s Public Lands Push — What Didn’t Make It In
Senator Mike Lee of Utah had proposed allowing the federal government to sell specific parcels of public land—primarily Bureau of Land Management acreage near urban areas—to support affordable housing and infrastructure projects. While the plan was designed to reduce federal control and promote development in Western states like Utah, it sparked strong bipartisan pushback.18
Critics feared the measure lacked safeguards against sales to foreign or corporate buyers and threatened public access to recreational land. With opposition mounting, the proposal was ultimately dropped, leaving Utah’s public lands under current federal management.
Final Thoughts: What Should You Be Doing Now?
While many of these provisions won’t take effect until January 1, 2026, now is the time to evaluate how they’ll shape your tax strategy going forward. Even the temporary measures — like deductions for tip income, auto loan interest, and expanded SALT caps — could present planning opportunities over the next few years.
This fall, consider:
- Reviewing your projected income and deduction eligibility
- Thinking ahead about your estate planning strategy
- Revisiting how your business income is structured
- Reassessing retirement contributions, 529 plan usage, or HSA-eligible coverage
Tax law may have shifted, but the need for proactive, personalized planning remains the same. If you’d like help evaluating how the new law affects you or your business, we’re here to talk.
We offer a complimentary consultation called…
The Financial Transition Strategy™
It’s designed to help you quiet the noise and create a clear path forward, as well as help you get to know us and see if we’d be a good fit to work together.
We’re always respectful, and there’s never any pressure.
Opinions expressed are those of Snowpine Wealth Strategies and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. The forgoing is not a recommendation to buy or sell any individual security or any combination of securities. The information has
been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Neither Raymond James Financial Services nor any Raymond James Financial Advisor renders advice on tax issues, these matters should be discussed with the appropriate professional.
2) https://www.hrblock.com/tax-center/irs/tax-law-and-policy/one-big-beautiful-bill-taxes/
5) https://www.congress.gov/crs-product/R48550
7) https://www.gfoa.org/child-tax-credit
10) https://www.bankrate.com/taxes/salt-tax-deduction/#what-is-salt
11) https://medicaid.ncdhhs.gov/beneficiaries/impact-hr1-and-federal-changes-medicaid
12)https://osc.ct.gov/wp-content/uploads/2025/07/2025.07-Comptroller-OBBBA-Report-FINAL-1.pdf
13)https://www.lw.com/en/insights/one-big-beautiful-bill-new-law-disrupts-clean-energy-investment
14) https://my529.org/2025/07/federal-changes-to-qualified-education-expenses/
15) https://morrisgarritano.com/resource/group-health-plan-changes-in-the-one-big-beautiful-bill/
