🔥 Trending Global Tax Updates: What You Need to Know

The United States tax landscape has undergone significant changes with the passage of the "One Big Beautiful Bill Act" (OBBBA) in July 2025, signed into law by President Trump on July 4, 2025 ³⁴. This comprehensive legislation has made permanent many provisions of the 2017 Tax Cuts and Jobs Act (TCJA) that were set to expire at the end of 2025, alongside introducing new adjustments and modifications ³⁴.

Key Changes Introduced by the One Big Beautiful Bill Act (OBBBA)

The OBBBA has brought about several notable changes affecting both individual taxpayers and businesses, with many provisions taking effect for the 2025 and 2026 tax years.

Individual Tax Changes

• Standard Deduction Increases: For tax year 2026, the standard deduction has seen an increase. It rises to $32,200 for married couples filing jointly and to $16,100 for single taxpayers and married individuals filing separately ⁵⁶. This adjustment aims to account for inflation and provide greater tax relief to many taxpayers.
• State and Local Tax (SALT) Deduction Cap Increase: The cap on the State and Local Tax (SALT) deduction, which includes local income, sales, and property taxes, has been significantly increased. Effective for tax year 2025, the cap rises from $10,000 to $40,000. For tax year 2026, this cap further increases to $40,400 and is set to increase by 1% annually thereafter ⁸. This change is expected to benefit taxpayers in high-tax states.
• Expanded Eligibility for Health Savings Accounts (HSAs): Starting January 1, 2026, more individuals will be eligible to contribute to an HSA. This includes those who previously couldn't because their health plan did not meet the strict High-Deductible Health Plan (HDHP) definition. Additionally, people enrolled in certain direct primary care (DPC) service arrangements may now also contribute ¹.
• New and Enhanced Deductions: The IRS announced new and enhanced deductions for individuals for the 2026 filing season in February 2026 ⁷. While specific details of all these deductions are still emerging, they are designed to offer additional tax benefits to taxpayers.

Business and Corporate Tax Changes

• Permanent Extension of TCJA Provisions: The OBBBA permanently extends, with some modifications, certain business and international tax provisions that were part of the 2017 Tax Cuts and Jobs Act ⁴. This provides greater certainty for businesses in their long-term financial planning.
• Energy Credit Adjustments: The act makes cuts to energy credits that were previously passed under the Inflation Reduction Act ². Businesses and individuals relying on these credits should review the specific changes to understand their impact.

Broader Impact and Context

The OBBBA is described as a "big beautiful bill" that permanently extends tax cuts from the TCJA, aiming to provide stability and long-term planning opportunities for taxpayers ². The IRS continues to release inflation adjustments for the 2026 tax year, incorporating the amendments from the OBBBA ⁵. Taxpayers are encouraged to stay informed about these changes, as they can significantly impact their tax obligations and financial planning for the upcoming years ²⁶.

For detailed information and guidance, taxpayers can consult the official IRS website and resources from reputable tax advisory services ¹⁵⁷⁹¹⁰.