OBBB 2026 vs TCJA 2025 Tax Comparison Calculator
The One Big Beautiful Bill Act (OBBB, P.L. 119-21, signed July 4, 2025) made many TCJA provisions permanent and raised some thresholds. Compare your federal tax under 2025 (last TCJA year) vs 2026 (first OBBB year). Source: irs.gov, P.L. 119-21.
What Is OBBB? — Tax Cuts and Jobs Act Renewed
The One Big Beautiful Bill Act (P.L. 119-21, signed July 4, 2025) extended or made permanent most TCJA provisions that were scheduled to sunset Dec 31, 2025: lower individual tax rates (10%-37%), doubled standard deduction, $2,000 Child Tax Credit, $10,000 SALT cap (raised for some filers), QBI 20% deduction, estate exemption RAISED to $15M (not halved to $7M). Source: irs.gov OBBB pages.
Key 2026 Changes vs 2025
(1) Brackets inflation-adjusted (same 7 rates 10/12/22/24/32/35/37). (2) Standard deduction ~$15,000 single, $30,000 MFJ (inflation-adjusted from $14,600/$29,200 in 2025). (3) Child Tax Credit $2,000 stays. (4) Estate exemption $15M per person (not the feared $7M revert). (5) SALT cap negotiated higher for itemizers above income thresholds in select states.
Who Saves Most Under OBBB Permanence
(1) High earners avoid bracket revert (37% stays, was scheduled to revert to 39.6%). (2) Estate planners avoid $7M exemption — keep $15M. (3) Pass-through business owners keep 20% QBI deduction. (4) Standard-deduction filers (majority of households) avoid revert to lower amounts. Itemizers in high-tax states still face $10k SALT cap pain but it's permanent now.
What Did NOT Change Under OBBB
(1) Mortgage interest deduction cap $750k loan (TCJA level) stays. (2) Moving expense deduction stays repealed (except military). (3) Misc itemized deductions stay repealed (no unreimbursed employee expenses). (4) Personal exemptions stay $0. (5) Roth recharacterization ban stays.
Frequently Asked Questions
What does OBBB stand for?
One Big Beautiful Bill Act (P.L. 119-21), signed July 4, 2025. Extended or made permanent most TCJA individual provisions. Source: irs.gov.
Did the estate tax exemption drop to $7M?
No — OBBB RAISED it to $15M per person for 2026, not the feared $7M revert. Common confusion among taxpayers.
Are individual tax rates the same in 2026 vs 2025?
Same 7 brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) but income thresholds inflation-adjusted ~3% upward. Most taxpayers see slight tax DECREASE due to inflation indexing.
Does OBBB change the SALT cap?
Mostly stays at $10,000 with some negotiated higher caps for itemizers above certain incomes in NY/CA/NJ. Most filers still capped at $10k.
Should I refile 2025 taxes after OBBB passed?
Generally no — OBBB applies prospectively from 2026. 2025 returns filed under TCJA rules. Consult CPA if amending for retroactive provisions (limited).