William Martens, CPA | Director of Tax Planning - Mach 1 Financial Group
We've all likely heard of the so-called "One Big Beautiful Bill Act"—or OBBBA—that was signed into law about a year ago. But other than being big and beautiful, what exactly does this mean for you as a taxpayer?
Let’s talk about bracket and deduction certainty.
Essentially, the OBBBA makes our current tax brackets and standard deduction levels permanent. Now, technically, you won't feel a massive difference here compared to the last several years. But consider this: before this act passed, everything was legally set to sunset and revert back to 2017 pre-TCJA levels.
If that reversion had actually happened, the numbers would look vastly different.
For example, a married couple making $110,000 in 2026 under the old rules would take an estimated standard deduction of just $16,000. That would result in a taxable income of $94,000 and push them into a 28% marginal tax rate.
But with the OBBBA making those newer provisions permanent? That exact same couple now takes a $32,200 deduction. That drops their taxable income to $77,800 and lands them in a comfortable 12% marginal tax rate.
That is a massive difference.
So, what does this actually mean for you?
Well, now that these brackets and deductions are permanent—and look, a quick footnote here: in the tax world, "permanent" just means "permanent until Congress decides it's not anymore"—but for now, at least, you can manage your money with relative certainty. Knowing these income brackets aren't suddenly expiring means you can make confident, long-term decisions regarding everything from Roth conversions to your income distributions.
Additionally, because that standard deduction is set so high, a lot of taxpayers won't have much of an incentive to itemize their deductions anymore.
Even for those who do, however, the OBBBA made some notable changes.
Looking for more information on this topic?
Explore some unique opportunities for those with deductible expenses and charitable goals who still wish to itemize in this article: https://www.linkedin.com/pulse/how-obbba-changes-itemized-deductions-salt-vs-charitable-3vjuc
Are you a business owner? There is a section of the OBBBA tax code that may apply to you! Read more in this article: https://www.linkedin.com/pulse/20-tax-deduction-business-owners-probably-missing-2026-zruec
Content Prepared by Mach 1 Financial Group
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