03/12/2026
Tax legislation can be complex, but its impact is often concentrated in a handful of lines.
The One Big Beautiful Bill Act highlights several changes that can impact household decisions in 2026, especially in high-tax states.
Key Facts to Know:
1️⃣ The State and Local Tax (SALT) cap: Increased to $40,000, begins to phase out above $500,000 of income, then reverts to $10,000 in 2030.
2️⃣ Standard Deduction: Made permanent and increased to $16,100 single and $32,200 joint, indexed for inflation after 2025.
3️⃣ Estate and Gifting: Lifetime exclusion increases to $15 million per person and $30 million for couples, indexed for inflation.
4️⃣ Charitable Giving: A permanent charitable deduction returns for non-itemizers, plus new limits and thresholds for itemizers, including a 0.5 percent Adjusted Gross Income floor and a cap for top bracket households.
When rules change, households that take a proactive approach and coordinate with their tax, legal, and accounting professionals may have a better understanding of how new rules affect them. 📌