Trump’s 2025 Tax Law: What’s In It and What You’ll Save

The 2025 Tax Law Just Passed—Here’s What You Need to Know

There’s a big new tax law that just got signed, and I wanted to break it down for you in a way that actually makes sense. It's called the One Big Beautiful Bill Act (yep, that’s really the name), and it brings some pretty major changes—especially if you’re working, have a family, or run a business.

I know tax stuff can be confusing or kind of boring, but this one’s worth a few minutes of your time. It could seriously affect how much you pay—or save—when tax season rolls around.

So, let’s talk about it.

What Is the One Big Beautiful Bill Act?

This new law was signed on July 4, 2025, and it brings back a bunch of tax cuts from 2017. It also adds a few new things that could help families, small businesses, and workers who get tips or overtime.

Some people love it, others aren’t thrilled. But either way, it’s here—and it’s already changing the rules.

Let me walk you through what’s in it and what it could mean for you.

1. Tax Cuts Are Here to Stay

Remember those lower tax rates from the 2017 tax law? They were set to expire soon. This new law makes those tax cuts permanent.

Here’s what that means for you:

• The highest tax rate (for people making a lot) stays at 37% instead of going up.
• Most workers keep paying less tax than they did before 2017.
• Your paycheck probably won’t take a hit next year.

If you liked the way taxes felt the last few years, good news—this part isn’t changing anytime soon.

2. Bigger Standard Deduction

The standard deduction is the amount you can subtract from your income before taxes even start. This law raises that number, which is great.

Here’s the update:

• If you file taxes alone, the deduction goes up to $15,000
• If you’re married and file together, it jumps to $30,000

For most people, this means less money gets taxed—and that could mean a smaller tax bill or a bigger refund.

3. More Help for Families with Kids

If you’ve got kids, this next part is going to matter.

The Child Tax Credit is going up to $2,200 per child. That’s an extra $200 per kid compared to before. Plus, it will go up a little each year with inflation.

That credit comes straight off what you owe, which makes a real difference when you're filing.

4. SALT Deduction Cap Raised (But Just for a Year)

Do you live in a high-tax state like New York, California, or New Jersey? Then you’ve probably felt the pain of the SALT cap.

This law raises the deduction limit to $40,000—but only for 2025.

So, if you pay a lot in state and local taxes, you may be able to deduct more on your federal taxes this year. Just don’t count on this one lasting.

5. Big Win for Small Businesses

If you own a small business or do freelance work, listen up. This law makes the 20% pass-through deduction permanent.

That means:

• If your business makes $100,000 in profit
• You can deduct $20,000 from your taxable income
• So, you only pay taxes on $80,000

This is a big deal for LLCs, S corps, and sole proprietors. It’s a way to lower your tax bill just by being in business.

6. New Deduction for Tips and Overtime

Here’s something brand new: a special deduction for tipped and hourly workers.

If you make less than $150,000 a year, and you earn tips or get paid overtime, you’ll be able to deduct up to $25,000 of that income starting in 2026.

This one lasts through 2028, and it’s designed to help folks in restaurants, retail, hospitality, and similar jobs.

If that’s you—or your employees—this could mean real savings.

What Does This All Mean for You?

You might be wondering how this all adds up in real life.

Here’s the short version:

• You’ll likely keep more of your paycheck
• Your tax return might be simpler
• If you’re a parent or business owner, you could save even more

Of course, every situation is a little different. But overall, most people will either pay less or stay about the same.

Some People Aren’t Happy About It

Let’s be real—not everyone thinks this bill is a good idea.

Critics say:

• It mostly helps wealthy people and big companies
• It could add trillions to the national debt
• It doesn’t give enough support to low-income workers

There’s probably some truth in all of that. But the fact is, this law is active now, and it’s going to affect your taxes—so it’s smart to be ready either way.

What You Can Do Right Now

Here are 4 quick things I recommend doing:

1. Double-check your paycheck – Make sure you’re withholding still makes sense.
2. Update your tax plan – Especially if you're a parent, business owner, or hourly worker.
3. Talk to a tax pro – Even if it’s just a quick check-in. It could save you money.
4. Bookmark this info – Things could change again after the next election.

Final Thoughts

Look, tax laws change all the time—but this one is big.

The One Big Beautiful Bill Act touches just about everyone in some way. Whether you’re working a job, running a business, raising kids, or all of the above, now’s a good time to get ahead of it.

If you’re not sure how this applies to you, that’s okay. I’m happy to help walk you through it. You don’t have to figure it all out on your own.