You’ve likely heard about this from every possible media channel. A sweeping new tax law just hit the books. It’s called the “One Big Beautiful Bill Act,” and it could represent a big overhaul to household finances. Think of it like a home renovation. The 2017 tax cuts laid the foundation; this law keeps the structure, adds new features, and rips out a few that may no longer fit.
We won’t dance around the issue: this bill is controversial. Some people love it, others don’t. Yet no matter how you feel about the politics behind it, we want to break down how it might affect you – your taxes, your savings, your financial future. It’s now more important than ever to work with your team of professionals to make sure your investments, financial plan, and estate plan are all optimized for the new tax landscape.
Tax Rates Remain
All existing individual federal income tax rates that were set to expire have been permanently extended and adjusted for inflation. The standard deduction has also been increased to $15,750 for single filers ($31,500 for joint filers) and will be adjusted for inflation in future years which means fewer people may need to itemize their deductions.1 In addition, between now and 2028, every filer over the age of 65 can get an additional deduction of $6,000 (subject to phaseout limits above $75,000 for single filers and $150,000 for joint filers). It will be important to plan capital gain and Roth conversion income appropriately to maximize these enhanced tax benefits.
Higher SALT Cap
Taxpayers in high income tax states like California will welcome that the cap on state and local tax (SALT) deductions will increase from $10,000 to $40,000.1 This higher cap is phased out between $500,000 and $600,000 of income and is only in effect until 2030. Owners of pass-through entities can still benefit by paying taxes at the entity level.
Mixed Bag For Charitable Giving
Taxpayers who take the standard deduction can now also deduct charitable donations up to $1,000 for single filers and $2,000 for joint filers. However, for taxpayers who itemize deductions, their incentives have been reduced. Charitable donations are only deductible to the extent they exceed 0.5% of your income and the deduction could be limited to 35% even if you are in the 37% bracket.2 Because of this, it may make sense for some itemizers to accelerate donations into 2025 when these rules aren’t yet in effect and potentially bundle donations in alternating years thereafter. In any case, qualified charitable donations from your IRA remain an impactful and tax-advantageous way to support your favorite causes.
Lifetime Estate Tax Exemption Remains High
The amount you can gift and bequest at death has permanently increased to $15 million per individual in 2026, avoiding the potential drop to $7 million without the bill. That means a couple can leave $30 million to their beneficiaries without incurring the 40% estate tax.3 Although fewer people will be subject to estate tax with the higher exemption level, there are many reasons to continue planning your estate carefully such as avoiding the cost and hassle of probate and ensuring your assets are distributed according to your wishes.
With proper planning, this legislative shift can become an opportunity, not an obstacle.❞
FINANCIAL LESSON:
Political Headlines, Personal Impact
Sound like a lot? We understand. This law is more than 900 pages long. Some changes start right away, others in 2026. And while the headlines are political, the impact is personal. The good news? You don’t have to navigate this alone. With proper planning, this legislative shift can become an opportunity, not an obstacle.
With changes this significant, it can be helpful to review how they might affect your specific financial picture. Whether you’re adjusting your savings strategy or exploring how new tax breaks might apply to you, a conversation about your situation can help you stay ahead of these changes. If you have questions about how this might impact you, we’re here to help walk you through it.
Sources & Disclosures
2. https://www.captrust.com/resources/one-big-beautiful-bill-nonprofits-2025/
3. https://www.fidelitycharitable.org/articles/obbb-tax-reform.html
Integral Investment Advisors, Inc. dba Integral Wealth Management is a Registered Investment Adviser. This material is for informational and illustrative purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Advisory services are only offered to clients or prospective clients where Integral Wealth Management and its representatives are properly licensed or exempt from licensure. The views and opinions expressed in this material reflects the personal opinions, viewpoints, and analyses of Integral Wealth Management employees and/or the individual providing such comments, and should not be regarded as a description of advisory services provided by our firm or performance returns of any our firm’s clients. The views and opinions expressed in this material is subject to change at any time without notice. Nothing in this material constitutes investment advice, performance data, or any recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Our firm manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the material.
This material is developed from sources believed to be providing accurate information; no warranty, expressed or implied is made regarding accuracy, completeness, legality, reliability, or usefulness of any information. Integral Wealth Management may also provide links for your convenience throughout the material to websites produced by other providers of industry-related material. Accessing websites through links directs you away from our content. Our firm is not responsible for errors or omissions in the material on third party websites, and does not necessarily approve of or endorse the information provided. Users who gain access to third party websites may be subject to copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites.
It is important to note that all investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is not a guarantee of future results. Our firm urges you to please seek advice from your licensed financial professional prior to making any investment decision.