Pathview Wealth Advisors is following major tax legislation that is moving through Congress, and it could impact your financial strategy in meaningful ways. President Trump’s “One, Big, Beautiful Bill” has passed the House, and the latest One Big Beautiful Bill tax changes are heading to the Senate with provisions that affect everything from state and local tax deductions to how much wealth you can transfer tax-free.
Where We Stand Today (as of June 2025)
While we await Senate action and expect additional adjustments before the bill becomes law, the proposed One Big Beautiful Bill tax changes give us a clear picture of what’s on the horizon. Important note: Current 2025 tax laws remain unchanged. These modifications would take effect in the 2026 tax year.
The bill’s primary goal is to address the impending expiration of the Tax Cuts and Jobs Act (TCJA), which was scheduled to sunset after 2025. The new legislation aims to make the tax rates and bracket changes from the TJCA permanent. Additionally, it adds several new provisions related to One Big Beautiful Bill tax changes.
Key Changes That Could Affect You
Tax Rates and Brackets
The bill leaves the top individual tax bracket unchanged at 37%. Standard deduction levels will also remain at their higher amounts. Though we expect these to continue increasing over the next four years.
State and Local Tax (SALT) Deduction
The current $10,000 SALT deduction limit increases to $40,000. However, taxpayers earning over $500,000 will be phased out of this increase.
Family Benefits
- Child Tax Credit: Increases to $2,500 for tax years 2025–2028
- Senior Bonus: Taxpayers over 65 get a temporary $4,000 bonus standard deduction (income limitations apply)
Vehicle and Transportation
- American Auto Loan Interest: Taxpayers can deduct up to $10,000 annually on auto loan interest for vehicles manufactured and assembled in the U.S. (no need to itemize but income limits apply)
- Clean Vehicle Credit: Ends December 31, 2026, for new vehicles, with no credits available to manufacturers that have sold over 200,000 vehicles between 2009–2025
Health Savings Accounts (HSAs)
- Medicare Part A eligible individuals can now contribute to HSAs
- Contribution limits increase to $8,450 for individuals and $16,850 for families (income limits apply)
- HSAs can cover gym memberships, fitness classes, and safety equipment up to $1,000 annually
Work and Income
- Overtime and Tips: No federal taxes on overtime wages or tips for employees making under $155,000 annually
Charitable Giving
- Standard Deduction Filers: Can deduct $300 in charitable contributions without itemizing
Estate Planning
- Estate and Gift Tax: Exemption increases to $15 million in 2026 (previously set to revert to about $6 million)
Energy Credits
- Residential Clean Energy Credit: Terminates December 31, 2025 (includes solar panels and other residential clean energy systems)
High Earners
- Itemized Deductions: New limitations for income earners in the 37% tax bracket
The Big Picture: Why Professional Guidance Matters More Than Ever
Tax law changes like these don’t happen in a vacuum; they ripple through every aspect of your financial life. In fact, One Big Beautiful Bill tax changes could influence everything from retirement planning and investment strategies to estate planning and charitable giving, creating new opportunities and requiring strategic adjustments to your financial plan.
This is exactly why working with a comprehensive financial and tax planning team year-round makes such a difference. Rather than scrambling to understand changes after they become law, proactive planning allows you to position yourself advantageously. It also helps you make informed decisions that align with your long-term goals.
At Pathview, we’re committed to staying ahead of these developments and analyzing how they specifically impact your unique situation. Our team combines CPA expertise with comprehensive financial planning. This ensures you’re not just complying with One Big Beautiful Bill tax changes but making the most of them.
While we continue to monitor the progress of this legislation through the Senate, we’re already thinking through implementation strategies and planning conversations with our clients. Because when it comes to your financial future, being prepared isn’t just smart — it’s vital to your long-term success.
Not sure how these proposed changes apply to you?
Our CPA + CFP® team helps clients interpret tax law changes in the context of their full financial picture.
As this legislation continues to evolve, our team will keep you informed about developments and their potential impact on your financial plan. Do you have questions about how these One Big Beautiful Bill tax changes might affect your specific situation? We’re here to help you navigate the changes so you can keep more of what you earn and share it with future generations.