Whatever name you give it, the One Big Beautiful Bill Act (OBBBA) will bring sweeping changes for nearly every American taxpayer. While some provisions will kick in as early as 2025, many of the most significant shifts are slated for 2026 and 2027—giving individuals and families a window to prepare and plan strategically.

In this article, we’ll highlight key elements of the legislation that could affect Perigon clients. Keep in mind, this bill is massive and complex—we’re not aiming to cover every detail. And, as always, consult your accountant or tax preparer as well as your financial advisor for personalized tax advice.

• Thinking about buying an electric vehicle? You may want to act fast. The federal clean vehicle tax credit of up to $7,500 for EVs assembled in the U.S. expires after September 30, 2025. However, tax credits for installing EV charging equipment are still available through June 30, 2026. MAGI limits of $150,0000/$300,000 apply
• Going solar? The 30% federal credit for solar panels, geothermal heat pumps, and other energy-efficient upgrades is only available through December 31, 2025. Now’s the time to invest in green energy.
• A SALT shake-up. The cap on state and local tax (SALT) deductions will rise dramatically from $10,000 to $40,000 in 2025, with a 1% increase annually through 2029. This is tax relief for high-income earners in states like California, New York, New Jersey, Oregon, and Massachusetts. However, the full benefit phases out for Modified Adjusted Gross Income (MAGI) between $500,000 and $600,000.  Above $600,000, the SALT deduction remains $10,000.
• Optimize your income. If your taxable income hovers around $500,000 to $600,000, you might benefit from strategies that bring your income below the phaseout range to take advantage of the higher SALT deduction.
• Charitable giving strategies may need a refresh. Front-loading contributions into a donor advised fund during a single year so total itemized deductions exceed the standard deduction may still be a good tax strategy for some individuals.  But with the changes in the SALT deduction, many taxpayer’s itemized deductions may exceed the standard deduction even before charitable giving so giving can be more spread out if helpful for cash flow. For those over 70.5, giving through qualified charitable distributions from your IRA may continue to be a tax effective strategy
• 2025 could be the year to give. Starting in 2026, charitable deductions will only apply to donations above 0.5% of your adjusted gross income (AGI). That makes 2025 a prime year for maximizing charitable tax benefits.
• Even small donations count again. A new $1,000 charitable deduction for individuals and $2,000 charitable deductions for married filing joint (even if you don’t itemize) means it’s worth tracking all your contributions, big or small.
• A bigger break for seniors. Seniors 65+ will receive an extra $6,000 deduction for individuals and $12,000 for married couples on top of the existing senior standard deduction. That’s a total standard deduction of $46,700 for married couples for 2025-2028 with a phase out of MAGI of $75,000 for individuals and $150,000 for joint filers—a huge win for some retirees.
• Mortgage insurance premiums get a break. If you pay private mortgage insurance (PMI), it’s deductible starting in 2026 alongside mortgage interest on mortgages less than $750,000—adding to potential tax savings for homeowners
• A bigger child tax credit. The child tax credit increases in 2025 from $2,000 to $2,200 (it was supposed to go down) for individuals with modified adjusted gross income (MAGI) under $200,000 (or $400,000 if married filing jointly).
• Estate tax exemption expands. The federal estate tax exemption will climb to $15 million per person in 2026. While this change will keep most families clear of federal estate taxes, many could still face state-level estate taxes, depending on where they live.
• More flexibility for 529 plans. You can now use up to $20,000 per year for expanded K-12 expenses, including testing materials, textbooks, tutoring, and educational therapy for disabled students. Postsecondary expenses for professional credentials and continuing education are also newly eligible, making 529s a source of funding for lifelong learning.
• New retirement accounts for minors. Beginning in July 2026, kids under 18 can have up to $5,000 per year contributed into a new retirement account—even without earned income. The money must be invested in a U.S. stock-based index. And for babies born in 2025, 2026, or 2027, the federal government will contribute $1,000 to seed the accounts.  There are restrictions on using this money before retirement.  More details are coming, so keep this on your radar if you have young children or grandchildren.

The OBBBA extends the current federal tax brackets (10%, 12%, 22%, 24%, 32%, 35%, and 37%) that have been in place since 2018. While the brackets remain mostly unchanged, this is effectively a tax cut, as rates were scheduled to rise in 2026.

As a reminder, tax brackets are marginal. For example, a married couple with $120,000 in taxable income falls into the 22% bracket—but they only pay that rate on income above $96,850. The first $23,850 is taxed at 10%, and income between $23,851 and $96,850 is taxed at 12%.

The One Big Beautiful Bill Act is anything but small—and it’s certain to touch nearly every American taxpayer in some way. With so many moving parts, this is an ideal time to connect with your financial advisor and tax professional to strategize for 2025 and beyond. Thoughtful planning now can help you make the most of the opportunities this legislation creates.