Beyond ‘No Tax on Tips’: 7 Key OBBB Provisions for Individual Taxpayers

The One Big Beautiful Bill Act updated the tax code with bigger deductions and new credits to help reduce your overall tax burden.

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The One Big Beautiful Bill Act (OBBB), passed in July, made several changes to the tax code. The two that have received the most media attention are “no tax on tips” and “no tax on overtime” provisions.

Although these are momentous for many taxpayers, the OBBB contains other provisions that are helpful to many Americans. These money-saving updates got less publicity but may significantly reduce your tax bill.

Here are seven changes to the tax code that might make you celebrate when it comes time to file your taxes, from standard deduction increases, to tax brackets, to extra tax deductions for seniors.

Standard Deduction Increases

Most taxpayers don’t have enough to itemize, so they take the standard deduction, which is subtracted from the adjusted gross income (AGI), to determine taxable income.

According to the IRS, the standard deduction for 2024 was $14,600 for single filers and $29,200 for married couples filing jointly or a qualifying surviving spouse.

The OBBB increased those deductions for 2025. The 2025 standard deduction is $15,750 for single filers and $31,500 for married filers who file jointly. Head of households’ standard deduction is $23,625.

Also, according to the IRS, in 2026, the standard deduction is higher, at $16,100 for single taxpayers and $32,200 for married couples filing jointly. For heads of households, it will be $24,150.

But it doesn’t end there if you have dependent children.

Higher Child Tax Credit

The child tax credit and non-child dependent tax credit were $1,000 prior to the 2017 Tax Cuts and Jobs Act (TCJA), which increased the credit to $2,000.

That higher credit was set to sunset and revert to $1,000 on Dec. 31, 2025.

But the OBBB kept the tax credit and raised it to $2,200 per qualifying child starting in tax year 2025 and beyond. Starting in 2026, it will be indexed annually for inflation. The full credit has an income threshold of $200,000.

Estate and Gift Tax Exemption

The amount that an individual can transfer to his or her heirs tax-free when they die is called the estate and gift tax exemption.

The OBBB has changed estate and gift tax exemption rules, increasing the exemption to $15 million per individual and $30 million per married couple, and making the change permanent. Estates below this amount avoid federal estate tax.

That’s up from the previous limits, which were $13.99 million and $27.98 million.

TCJA Tax Rates Made Permanent

If it weren’t for the new law, federal tax rates would have reverted to higher rates in effect before the TCJA. The OBBB made permanent many of the changes within the TCJA that were due to expire at the end of 2025.

Here are tax brackets for single filers for taxes due April 2026 (or October 2026 with an extension):

10 percent:  $0 to $11,925

12 percent: $11,925 to $48,475

22 percent: $48,475 to $103,350

24 percent: $103,350 to $197,300

32 percent: $197,300 to $250,525

35 percent: $250,525 to $626,350

37 percent: $626,350 or more

Above-the-Line Charitable Donations

One item that not only helps taxpayers but also encourages donating to qualified nonprofits is an above-the-line donation.

In the past, if you took the standard deduction, you couldn’t deduct charitable donations.

The OBBB changed that. After the 2025 tax year, those who take the standard deduction can deduct up to $1,000 as an above-the-line deduction. Married couples filing jointly can deduct $2,000.

The deduction only applies to cash contributions to public charities. Donations such as household goods and securities don’t qualify.

Tax Deduction for Car Loan Interest

The OBBB has a new deduction for those who itemize. According to the IRS, effective 2025 through 2028, individuals may deduct interest paid on a loan to purchase a qualified vehicle. The vehicle must be purchased for personal use and can’t be a leased vehicle.

The maximum annual deduction for car loan interest is $10,000 and phases out for taxpayers with modified AGI over $100,000 (single filers) and $200,000 (joint filers).

To qualify, the interest must be paid on a loan that originated after Dec. 31, 2024.

Tax Deduction for Seniors

The OBBB includes an enhanced deduction for seniors. As of 2025, individuals 65 or older by the end of the year can claim an additional $6,000 deduction. Spouses, if both qualify, can claim $12,000.

The deduction is available both for both those who take the standard deduction and those who itemize. It phases out for those with a modified AGI of more than $75,000 ($150,000 for joint filers).

The senior tax deduction provision is scheduled to expire after the 2028 tax year.

Something for Everyone

Whether you’re waiting tables, looking to buy a minivan for your growing family, or planning how to pass your wealth to your children—or simply planning for the day-to-day—the OBBB has something for you.

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