The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, is packed with tax changes that will touch almost every household and business. At more than 800 pages long, it’s not exactly light reading, so we’ve broken it down to what matters most, explained in plain English.
The Standard Deduction Becomes Permanent
- Single & Married Filing Separately: $15,750
- Head of Household: $23,625
- Married Filing Jointly: $31,500
✅ Why it matters: Tax filing gets simpler, and more households can save time by skipping itemizing. But if your business or household has leaned on itemized deductions in the past (like mortgage interest or large charitable gifts), your strategy may need adjusting.
A Bigger Child Tax Credit
Beginning in 2025, the Child Tax Credit rises to $2,200 per child, and it’s now indexed for inflation.
✅ Why it matters: Families will see more cash back at tax time. That might mean covering a month of daycare, investing in your child’s college fund, or even freeing up money to reinvest in your business.
Higher SALT Deduction Cap
The state and local tax (SALT) deduction cap increases to $40,000 per household through 2030, then reverts to $10,000.
✅ Why it matters: Homeowners and business owners in high-tax states will feel the biggest benefit. If you own business property, this deduction could be a key part of your tax planning strategy.
A New Break for Charitable Giving
Starting in 2026, even if you don’t itemize, you can deduct charitable donations:
- $1,000 for single filers
- $2,000 for joint filers
✅ Why it matters: Support the causes you care about, and finally see it reflected on your tax return. This can also factor into business giving strategies, boosting both goodwill and tax savings.
Estate & Gift Tax Exemption Raised
In 2026, the exemption jumps to $15 million per individual (or $30 million per couple), indexed for inflation.
✅ Why it matters: This historically high threshold gives families and business owners more room to transfer wealth. If you’re thinking about succession planning or passing your business to the next generation, now is the time to revisit your estate plan.
New Everyday Deductions (2025–2028)
Several new deductions may apply, including:
- Deduction for qualified tips (in certain occupations)
- Deduction for overtime premium pay (with limits)
- Up to $6,000 deduction for seniors under certain income thresholds
- Deduction of up to $10,000 for car loan interest, if the vehicle was assembled in the U.S.
✅ Why it matters: Workers, retirees, and small business owners alike could benefit. For example, if you run a service-based business with tipped employees, or pay significant overtime, these changes could reduce your overall payroll tax burden.
What This Means for You
- Short-term wins: Bigger standard deduction and child tax credit = more cash flow now.
- Mid-term opportunities: Expanded SALT and charitable deductions = new planning conversations.
- Long-term strategies: Higher estate exemptions = new options for succession planning and wealth preservation.
How Ryder & Company Helps You Plan Ahead
Tax law changes don’t have to be overwhelming. At Ryder & Company, we cut through the fine print and help you see what really matters for your financial future. Whether you’re raising a family, growing a business, or preparing to pass wealth to the next generation, we’ll show you how to make the OBBBA work in your favor.
📞 Call us at (610) 670-6170 or email ron@ryderco.com to schedule your consultation and start planning with confidence.
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