The "One Big Beautiful Bill Act" (signed July 2025) is a major tax law providing significant, long-term relief for homeowners, primarily by raising the State and Local Tax (SALT) deduction cap to $ 40 , 000 $ 4 0 , 0 0 0 (from $ 10 , 000 $ 1 0 , 0 0 0 ) through 2029. It also permanently reinstates the mortgage insurance premium deduction, locks in mortgage interest deductions, and maintains higher standard deductions.
Good news: The bill brings back the tax deduction for mortgage insurance premiums—and this time, it's permanent. Translation: If you're buying your first home with a smaller down payment, this could save you an extra $1,500–$2,000 a year on your taxes. That's real money back in your pocket.
The One, Big, Beautiful Bill Increases American Families' Income and Workers' Wages. The One, Big, Beautiful Bill preserves and boosts the standard deduction by up to $1,500 for working families, providing relief to 91% of American taxpayers. $7,200 per worker.
The OBBBA includes $150 billion in new defense spending and another $150 billion for border enforcement and deportations. The law increases the funding for Immigration and Customs Enforcement (ICE) from $10 billion to more than $100 billion by 2029, making it the single most funded federal law enforcement agency.
The One Big Beautiful Bill Act (OBBBA) created a new tax deduction for seniors 65+ starting with the 2025 tax year, offering up to $6,000 for single filers and $12,000 for married couples.
The $6,000 senior deduction is in effect from tax years 2025 through 2028. It applies to taxpayers 65 and over, regardless of whether they itemize their tax returns or take the standard deduction.
Some of the major tax changes effective from April 1, 2025, are revised tax slabs, rebate of up to Rs. 60,000, revised ITRU deadlines, calculation of partner's remuneration allowable as a deduction and revised TDS/TCS threshold limits.
The new senior tax deduction, sometimes called 'No Tax on Social Security', is up to $6,000 for single filers and $12,000 for joint filers, and was created to potentially eliminate taxes on Social Security benefits. It's available to all eligible seniors, even if you don't have Social Security income.
2026 standard deduction
Taxpayers who are 65 or older can take an additional standard deduction, which is also adjusted for inflation. For tax year 2026, that amount is $2,050 for single taxpayers and $1,650 for married taxpayers or surviving spouses.
The standard deduction increased for 2025 and 2026, and a new temporary “bonus” deduction for adults 65 and older begins in 2025. The child tax credit increased to $2,200 for the 2025 and 2026 tax years; retirement plan contribution limits for IRAs and 401(k)s also increased for 2026.
Permanent Exemption Increases
Unified estate and gift tax exemption is permanently increased to $15 million per individual ($30 million for married couples) beginning on January 1, 2026, with annual inflation adjustments thereafter.
Donald Trump has recently proposed eliminating property taxes across the United States, stirring up a major debate on housing and taxes.
Under the new income tax regime for 2025-26, any taxable income up to ₹12,00,000 attracts a full rebate of ₹60,000 (under Section 87A), resulting in a nil tax liability.
The start of March will bring about a number of significant changes that will affect numerous aspects of daily life. Updates to the regulations pertaining to nominations, LPG cylinder prices, FD rates, UPI payments, tax adjustments, and GST security are among the modifications that will take effect on March 1, 2025.
For the 2025 tax year, the standard deductions increased significantly due to the "One, Big, Beautiful Bill" (OBBBA) (OBBBA), with rates of $15,750 for Single/Married Filing Separately, $31,500 for Married Filing Jointly, and $23,625 for Head of Household, plus additional amounts for seniors/blind individuals, along with new provisions like a higher SALT deduction cap and deductions for tipped/overtime workers.
The new $6,000 tax deduction for older adults, part of the "One Big Beautiful Bill Act," provides an additional deduction of up to $6,000 per person (or $12,000 for couples) for those 65+ for tax years 2025-2028, available even if you itemize, but it phases out with higher incomes ($75k single / $150k joint MAGI thresholds) and requires a Social Security number, acting as a valuable income reducer, not a direct credit.
The extra $144 added to Social Security usually comes from the Medicare Part B Giveback benefit, offered by some Medicare Advantage (Part C) plans, which pays back some or all your Part B premium, showing up as extra money in your check if it's deducted from your Social Security. To qualify, you need Original Medicare (Parts A & B), pay your own Part B premium, live in a plan's service area, and enroll in a specific Medicare Advantage plan that offers this "rebate," with the amount varying by plan and location.