OBBBA 2025 — Signed into law July 4, 2025

How Much Does the New Tax Law Save You?

Compare your 2025 taxes before and after the One Big Beautiful Bill Act. Every number sourced directly from the IRS.

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Filing Status & Estimated MAGI

$

For most W-2 employees, MAGI ≈ total gross income. Includes wages, business income, investments, Social Security, etc. before deductions.

Age & Family

I am age 65 or older (by Dec 31, 2025)

Qualifies for additional standard deduction + OBBBA $6,000 senior bonus

0

OBBBA increased the Child Tax Credit from $2,000 to $2,200 per child

New OBBBA Deductions

These deductions are new under the One Big Beautiful Bill Act. Open only the sections that apply to you.

Enter your income to see
your OBBBA savings

This is an estimate. Actual tax liability depends on your complete tax situation including itemized deductions, AMT, self-employment tax, state taxes, and other factors not modeled here.

MAGI note: OBBBA phaseouts use Modified Adjusted Gross Income (MAGI), which equals AGI plus certain excluded income (e.g., foreign earned income under IRC §§911, 931, 933). For most W-2 employees, MAGI closely approximates total gross income. Self-employed and international filers should consult a tax professional for precise MAGI calculations.

All figures use IRS-published 2025 rates and OBBBA provisions (Public Law 119-21, Rev. Proc. 2024-40, Rev. Proc. 2025-32, IRS FS-2025-03). Phaseout rates confirmed by H&R Block, Tax Foundation, Bipartisan Policy Center, and multiple CPA/law firms reading the statute text. The Child Tax Credit may be partially refundable (up to $1,700 per child). This calculator computes federal income tax only.

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Real Estate Investors: Additional Savings

The calculator above covers standard OBBBA provisions. Real estate investors may qualify for significantly more — but these require professional analysis.

100% Bonus Depreciation

OBBBA restored full first-year depreciation for qualifying property (was 40% pre-OBBBA). Apply via cost segregation study.

Restored by OBBBA

Cost Segregation Studies

Reclassify building components into shorter depreciation schedules (5, 7, 15-year). Requires engineering analysis of your specific property.

Professional Analysis

Section 179 Expensing

OBBBA increased the cap to $2.5M for qualifying property improvements including HVAC, roofing, and fire protection.

Cap: $2.5M

Passive Loss & REPS

Deduct rental losses against other income if you qualify as a Real Estate Professional (750+ hours/year) or meet active participation rules.

Income-Dependent

QBI Deduction (Section 199A)

OBBBA made the 20% Qualified Business Income deduction permanent for pass-through entities and qualifying rental activities.

Made Permanent

SALT Deduction ($40K Cap)

OBBBA raised the state & local tax deduction cap from $10,000 to $40,000 for itemizers. Phases out above $500K MAGI.

Raised by OBBBA

Every property is different. A personalized analysis can uncover thousands in additional savings.

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Key OBBBA 2025 Provisions

Signed into law July 4, 2025. These changes affect your 2025 return.

+$1,500
Standard Deduction Increase
MFJ (Single: +$750)
$6,000
Senior Bonus
New for 65+ (per person)
$2,200
Child Tax Credit
Up from $2,000
$10,000
Vehicle Interest
New — US-assembled
$25,000
No Tax on Tips
Qualifying occupations
$25,000
No Tax on Overtime
MFJ ($12,500 single)