The One Big Beautiful Bill Act (OBBBA) introduces a range of tax-related changes that could impact many individual taxpayers. While not every provision will apply to everyone, the law adjusts several existing tax breaks and introduces new ones that may offer meaningful savings to specific groups. Most notably, it makes permanent the tax rate reductions and the majority of deduction and credit changes originally enacted under the Tax Cuts and Jobs Act (TCJA), with a few refinements along the way.
The OBBBA increases the limit on the state and local tax (SALT) deduction through 2029. Beginning in 2025, eligible taxpayers can deduct up to $40,000 ($20,000 for married couples filing separately) of SALT, including property tax and either income tax or sales tax, with a 1 percent annual increase thereafter. However, in 2030, the previous limit of $10,000 ($5,000 for separate filers) will resume.
When modified adjusted gross income (MAGI) exceeds $500,000 ($250,000 for separate filers), the cap is reduced by 30 percent of the amount by which MAGI exceeds the threshold — but not below $10,000 ($5,000 for separate filers). If you expect to be near or over the threshold, taking steps to reduce your MAGI (for example, increasing retirement plan contributions or making IRA qualified charitable distributions) could help you secure the full SALT deduction.
Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett (CSH).