Effective for 2025 through 2028., individuals who are 65+ may claim an additional deduction of $6,000 per individual ($12,000 total for a married couple where both spouses qualify). This new deduction is in addition to the current additional standard deduction and for both itemizing and non-itemizing taxpayers. 

Effective for 2025 through 2028, the OBBBA introduces a deduction for qualified overtime pay, meaning overtime income won't be taxed the same way as regular wages. This is designed to boast take-home pay for hourly and salaried workers. 

Effective for 2025 through 2028, qualifying taxpayers may deduct tips up to $25,000 per year. This deduction applies to those making less than $150,000 ($300,000 for joint filers).  

Effective for 2025 through 2028, qualifying taxpayers may deduct tips up to $10,000 per year for new, qualifying vehicles.  

The lower individual tax rates and income tax brackets set to expire in 2025 are now made permanent by OBBBA. The increased standard deduction set to expire in 2025 has been made permanent and increased to $15,750 for single filers and $31,500 for joint filers for 2025. 

The Child Tax Credit was set to default to $1,000 after 2025, however, the OBBBA increased the Child Tax Credit to $2,200 for every qualifying child starting in 2025. The credit amount will be adjusted annually for inflation starting in 2026. 

The $10,000 SALT deduction limit was set to expire in 2025, however, the OBBBA increased the cap to $40,000 for 2025 for those with income up to $500,000. This increased cap will rise by 1% annually through 2029 and default back to $10,000 in 2030.

The 20% pass-through business income deduction was set to expire in 2025, but the OBBBA made it permanent. The bill also created a minimum deduction of $400 for businesses with at least $1,000 of income.