Taxes 2025-2026: One Big Beautiful Bill Tax Law Changes and How That Impacts You

Written by a TurboTax Expert • Reviewed by a TurboTax CPA

Updated for Tax Year 2025 • November 16, 2025 10:10 AM Click Here to Read More https://turbotax.intuit.com/tax-tips/general/taxes-2021-7-upcoming-tax-law-changes/L3xFucBvV

Overview On July 4, 2025, the legislation known as the "One Big Beautiful Bill", also known as the Working Families Tax Cut, was signed into law. The new tax laws are as much about old tax laws as there are about new ones. The One Big Beautiful Bill makes permanent many of the temporary tax law changes that were first introduced as part of the Tax Cut and Jobs Act (TCJA) back in 2017. Below, we break down the 2025 tax changes and provide highlights of the

Article Summary

• The One Big Beautiful Bill (OBBB), also known as the Working Families Tax Cut, makes many of the 2017 Tax Cut and Jobs Act (TCJA) tax law changes permanent while adding some temporary and permanent changes to the tax code.

• Some new tax laws of the Trump Tax Plan 2025 are in effect for your 2025 taxes (which you'll file in 2026), however, most of the changes won't take effect until 2026 and later.

• The One Big Beautiful Bill keeps many of the TCJA tax items, including the larger Standard Deduction, elimination of personal and dependent exemptions, lower tax brackets, and elimination of, or limits on, certain itemized deductions.

• The 2025 tax law changes temporarily provide for no tax on tip or overtime income for certain workers.

• See how the changes might affect your tax return with the TurboTax Tax Reform Calculator.