How the “Big Beautiful Bill” Reshapes Your Tax Plan
Congress passed the “One Big Beautiful Bill” last week. The law cements several expiring provisions from the 2017 Tax Cuts and Jobs Act (TCJA), adds new deductions, and brings forward implications for estate planning and fiscal policy.
Essentially, the 80,000-page tax code has just become longer...
However, that is okay. I have reviewed the provisions in the bill and outlined the key changes you should be aware of.
Key Tax Law Changes You Should Know
These changes are already in effect or will begin in 2026. Here’s what matters:
1. Individual Income Tax Rates: Locked In
The lower TCJA tax brackets are now permanent.
Top marginal rate remains at 37%.
This takes the “tax cliff” off the table that was looming for 2026.
2. Higher Standard Deduction
$15,750 for single filers
$31,500 for joint filers.
This improves your after-tax income but could make itemizing less useful for some.
3. New Senior Deduction
$6,000 deduction for taxpayers over age 65
Phases out at single filers with a modified adjusted gross income (MAGI) of up to $75,000, and for married couples filing jointly with a MAGI of up to $150,000.
Expires in 2028
4. SALT Deduction Cap Raised
Increased to $40,000 from $10,000
Grows 1% annually through 2029, then reverts back to $10,000 in 2030
This change is significant if you're in a high-tax state.
5. Child Tax Credit Bumped Up
Increased to $2,200 per child
Now indexed to inflation
6. AMT Fix
AMT exemption is now permanent
Phaseout threshold for singles: $500,000 (indexed)
7. New Tip Income Deduction
Deduction up to $25,000 for tipped workers earning under $150,000
Applies through 2028
This is targeted relief for service workers but creates planning opportunities for small business owners in hospitality.
8. Estate Tax Exemption Made Permanent
$15 million per individual, $30 million per couple starting in 2026
This avoids the 2026 reversion to ~$6 million. Still, state estate taxes may apply, and many estate plans will need to be reviewed.
Note that this can also change if new laws are passed. Refer to the chart below for historical levels.
What This Means for Tax Planning Clients
If you’re building generational wealth, selling a business, or managing a large income, the bill matters. Here's how to think about it.
Estate Planning Just Got a Timeline Reset
You no longer face the 2026 cliff—but don’t ignore estate planning. Review gifting strategies and irrevocable trusts now, while interest rates remain relatively high and valuations are still reasonable.
Roth Conversions: Still Attractive, but Less Urgent
The urgency to “fill low brackets” before the TCJA sunset is gone. But Roth conversions remain a powerful tool to manage lifetime taxes. Use down markets, off-year income dips, or business losses to execute them efficiently.
Business Owners: Act While Incentives Last
The bill extends accelerated depreciation and other domestic investment incentives. If you’re considering large equipment purchases or facility expansions, the next two to three years are prime time.
SALT Cap Planning Opens Back Up
If you’re in California, New York, or similar high-income tax states, the increased SALT cap gives back some flexibility. You may want to revisit bunching charitable donations or your entity structure if you're an S-corp or LLC paying pass-through taxes.
Long-Term Tradeoff: Low Taxes, Big Deficits
The Congressional Budget Office estimates that the bill will add $3.4 trillion to the deficit over the next 10 years. As of 2025, the federal debt sits above 120% of GDP, or $36.2 trillion.
That means:
Higher taxes down the line remain a risk, especially for younger high earners.
Future tax planning should hedge against possible regime changes—think tax diversification across Roth, traditional, and taxable accounts.
You need to understand how rising debt can influence inflation and interest rates in your portfolio construction.
Final Thoughts: Take Action Now
This isn’t a wait-and-see moment—this is the window to solidify your plan under known rules. You should be running tax projections every year to test how your plan performs under both today’s law and a higher tax scenario.
Visit my site -> finnprice.com
Business Owner Education on a Weekly Basis -> Newsletter
Subscribe to the Youtube Channel for more video content -> Finn Price Youtube
About the author: Finn Price, CPFA, CEPA, is a business owner and wealth manager at Railroad Investment Group. He helps successful entrepreneurs & individuals with concentrated stock positions in their 30s, 40s and 50s build, organize, protect and transfer their wealth.
Note: this article is general guidance and education, not advice. Consult your money person or your attorney for financial, tax, and legal advice specific to your situation.
Securities and advisory services offered through LPL Financial, a registered investment Advisor, Member FINRA/SIPC.
