OBBB – Tax Law Changes for 2025
- Child Tax Credit increased to $2,200
- $6,000 Senior deduction
- Aged 65 and older
- In addition to standard or itemized deduction
- Phase out: Single/HOH $75,000, MFJ $150,000
- Not eligible if MFS
- Tax years 2025-2028
- $40,000 State and Local Tax cap (formerly $10,000)
- Phase out: $500,000 (MFS $250,000)
- Tax years 2025-2029
- Tips deduction
- Up to $25,000 tips
- In addition to standard or itemized deduction
- Phase out: Single/HOH $150,000, MFJ $300,000
- Not eligible if MFS
- Tax years 2025-2028
- Overtime deduction
- Deduct up to: Single/HOH $12,500, MFJ $25,000
- In addition to standard or itemized deduction
- Only on overtime premium (the “half” portion of “time and a half”)
- Phase out: Single/HOH $150,000, MFJ $300,000
- Not eligible if MFS
- Tax years 2025-2028
- Car Loan Interest deduction
- Loan originated after 12/31/2024 on new personal use vehicles with final assembly in the US
- Up to $10,000
- In addition to standard or itemized deduction
- Must provide VIN number and annual interest statement from lender
- Phase out: $100,000 (MFJ $200,000)
- Tax years 2025-2028
Businesses:
100% Bonus depreciation has been reinstated for assets placed in service after 1/19/2025.
We will continue to update this page as more information becomes available.
Last updated on 11/25/2025.