The Big, Beautiful Bill (OBBB): 2025 Tax Changes — Two Quick Summaries
Federal (USA) unless noted. Florida notes included where relevant.
TL;DR – Individuals
- Higher standard deduction for 2025 (e.g., $31,500 MFJ), with further 2026 inflation bumps.
- Itemized/charitable rules tweaked (new 0.5% AGI floor, below‑the‑line deduction for non‑itemizers begins 2026).
- Estate tax exemption kept high, trending to ~$15M in 2026 per person (federal).
- New/expanded senior add‑ons and a temporary “bonus” deduction window.
- AMT thresholds/phaseouts shift—more high earners should model 2025–2026.
TL;DR – Businesses
- Section 179 expensing cap doubled to about $2.5M; continuation of full first‑year expensing for equipment.
- 199A passthrough tweaks: new minimums/thresholds start after 12/31/2025.
- BEAT rate held at 10.5% for years beginning after 12/31/2025.
- Florida: state repealed sales tax on commercial rent effective Oct 1, 2025.
Disclaimer Educational content only; not legal, tax, or accounting advice. Confirm with your CPA/attorney. / Contenido educativo; no es asesoría profesional; confirme con su CPA/abogado.
Individuals: Your 2025–2026 Tax Cheat‑Sheet under the One Big Beautiful Bill (OBBB)
Resumen claro en inglés y español, con ejemplos numéricos, FAQs y checklist.
Key changes for 2025 (federal)
- Standard deduction increases for 2025: Single/MFS $15,750; MFJ $31,500; HOH $23,625. Further inflation increases apply in 2026. (IRS OBBB/Inflation guidance)
- Marginal rate cuts extended from 2017 era—model your bracket vs. 2024.
- Charitable giving: prepare for a new 0.5% of AGI floor on itemized charitable deductions and a below‑the‑line deduction for non‑itemizers beginning 2026. Consider bunching gifts in 2025.
Looking ahead to filing years starting 2026
- Estate tax exemption remains elevated (~$15M/person in 2026; portability allows ~$30M for couples). Coordinate titling/beneficiary designations.
- AMT phaseout thresholds adjust—some high earners may newly fall into AMT. Run a dual‑system projection.
- 65+: higher standard/additional deductions plus a new temporary “bonus” deduction window (2025–2028). Verify coordination if blind/65+.
Numbers you can use (examples)
Example A – MFJ, W‑2 Household
MFJ with $120,000 wages, no itemizing.
- Std. deduction 2025: $31,500 ⇒ taxable income ≈ $88,500.
- Compare 2024 vs 2025 brackets to confirm savings.
Example B – Single, charitable giver
$100,000 AGI; plans $1,200 cash gifts annually.
- In 2026, a 0.5% AGI floor means first $500 isn’t deductible if itemizing.
- Consider bunching gifts in 2025 or using a DAF strategy if appropriate.
Checklist – What to do now
- Update 2025 withholding using the new standard deduction.
- Time charitable gifts (bunching vs. 2026 floor; consider DAFs).
- Review estate plan: portability elections, titling, beneficiary forms.
- Run an AMT check if high‑income or high ISO/exercise activity.
- Florida residents: verify no state income tax, but check local surtaxes/sales tax for large purchases.
FAQs
Is OBBB federal or state?
Federal. Florida notes appear where relevant to state taxes (e.g., commercial rent sales tax repeal applies to businesses).
When do the charitable changes bite?
Primarily for tax years beginning in 2026 (plan 2025 gifts accordingly).
We’ll model 2024 vs 2025 and map a Q4 plan.
Slug: /blog/2025-tax-changes-individuals-OBBB
Businesses: 2025 Tax Changes Under OBBB (with Florida Notes)
For C‑corps, S‑corps, partnerships, and sole props; highlights, examples, checklist, and links.
Key changes for 2025 (federal)
- Full expensing / accelerated cost recovery preserved for qualifying equipment; Section 179 cap ≈ $2.5M with phase‑outs—great for capex planning.
- 199A (QBI) tweaks: new minimum QBI and deduction floor apply for years beginning after 12/31/2025; amounts indexed.
- BEAT set at 10.5% for tax years beginning after 12/31/2025 (large multinationals).
Florida state note (important for tenants)
State sales tax on commercial rent is repealed effective Oct 1, 2025. Review leases, CAM allocations, and AR/AP coding.
Examples
Example C – S‑corp buys equipment
Equipment spend of $1.8M in 2025.
- Section 179 room likely sufficient (cap ≈ $2.5M); consider bonus vs. 179 mix for state conformity and basis planning.
Example D – Pass‑through with modest QBI
$80,000 QBI in 2026.
- Ensure QBI exceeds the new minimum threshold to unlock the post‑2025 deduction; monitor W‑2 wage and UBIA limits.
Checklist – Quarter‑by‑quarter
- Q4‑2025: decide on capex; place assets in service; update 2025 safe‑harbor estimates.
- Q1‑Q2 2026: revisit entity comp (S‑corp reasonable comp; partnership guaranteed payments) for QBI optimization.
- Review transfer pricing and base‑erosion flows if in BEAT scope.
- Florida: update billing to remove commercial rent sales tax from 10/1/2025 onward.
FAQs
Does Florida conform to all federal expensing rules?
Conformity varies by year—check Florida corporate income tax conformity updates and consider addbacks if required.
Who is affected by BEAT?
Primarily large multinationals meeting base‑erosion thresholds; most small/medium domestic firms are outside scope.
Entity‑specific modeling, capex timing, Florida updates.
Slug: /blog/2025-tax-changes-business-OBBB
Sources / Fuentes (official & reputable)
IRS newsroom: OBBB provisions (updated Oct 9, 2025).
IRS inflation adjustments for TY 2026 (Oct 9, 2025).
H.R.1 – Public Law 119‑21 (enacted Jul 4, 2025).
OBBB highlights (Jul 7, 2025).
TIP 25A01‑04: Commercial rent sales tax repeal (Jul 24, 2025).
We also reviewed neutral analyses (Tax Foundation, law firm alerts) for planning context.