What the New Tax Law Means for Your Wealth Strategy 

In one of the most significant tax overhauls since 2017, Congress has passed the “One Big Beautiful Bill”—a sweeping piece of legislation that introduces a wide range of tax updates for individuals, families, and business owners. While the name may sound flashy, the law itself carries real financial implications. 

Whether you’re approaching retirement, running a business, or simply looking to make smart financial moves, this new law offers both opportunities and challenges that are worth understanding now, before the rules take full effect. 

Here are the key takeaways you should know: 

2017 Tax Brackets Made Permanent 

The individual income tax brackets from the 2017 law are no longer set to expire. Beginning in 2026, the 10% and 12% brackets will also receive a double inflation adjustment, which could benefit lower- to middle-income earners over time. 

Standard Deduction Expanded 

For the 2025 tax year, the standard deduction increases to: 

• $15,750 for single filers 
• $23,625 for heads of household 
• $31,500 for married couples filing jointly 

This change may reduce the need for itemizing, simplifying tax filing for many households.²  

SALT Deduction Cap Raised 

Taxpayers in high-tax states like New York and Connecticut will benefit from an increase in the State and Local Tax (SALT) deduction cap, from $10,000 to $40,000 for those earning under $500,000. This provision lasts through 2029.²  

A New “Senior Bonus” Deduction 

Taxpayers age 65 and older will receive an additional $6,000 deduction ($12,000 for couples), regardless of whether they itemize. Combined with the regular standard and age-based deductions, many seniors could see deductions totaling nearly $47,000.² 

Enhanced Child Tax Credit 

The Child Tax Credit rises to $2,200 per child and will be indexed to inflation through 2028.²  

New Deductions for Tip and Overtime Income 

Taxpayers who earn income through tips or overtime may now be eligible to deduct up to $25,000 in tips and $12,500 in overtime pay (per taxpayer), subject to income limitations.² 

Auto Loan Interest Now Deductible 

Up to $10,000 in interest on loans for U.S.-assembled vehicles (including trucks, RVs, and motorcycles) may now be deductible, even for non-itemizers. Income limits apply. ² 

Charitable Giving Becomes More Inclusive 

Starting in 2026, non-itemizers can deduct up to $1,000 (or $2,000 for joint filers) in cash donations. However, itemized deductions for charitable giving will begin to phase down slightly for high earners.² 

New Limits for High-Income Taxpayers 

Beginning in 2026, those in the highest tax bracket (37%) will see a reduction in itemized deductions based on income. This is aimed at limiting the tax benefit to the 35% rate, which could affect year-end planning strategies.² 

Estate and Gift Tax Exemption Increased 

One of the most impactful long-term changes is the increase of the federal estate, gift, and generation-skipping transfer tax exemption to $15 million per person (or $30 million per couple), effective in 2026. The exemption will be indexed for inflation and is now considered “permanent” unless revised by future legislation.²  

Opportunity Zones Get a Lifeline

Investors looking to defer or reduce capital gains taxes can still benefit from Qualified Opportunity Zones. Gains rolled into these investments can receive a 10% tax break after five years and become entirely tax-free if held for 10 years or more.²  

Gambling Loss Limits Introduced

Starting in 2026, taxpayers can only deduct up to 90% of their gambling losses. This means some gambling winnings may now be taxable even if you had a net loss overall, a major change for recreational and professional gamblers alike.³  

Take Advantage of the New Tax Landscape 

Major tax law changes don’t happen often. Taking a proactive approach today could position you to benefit for years to come. Whether it’s updating your retirement income strategy, gifting to family, or rethinking how your business is structured, now is the time to act. 

At Opal Wealth Advisors, we’re here to help you understand what the new law means for your personal situation and how to turn policy changes into smart, long-term planning moves. Set up a meeting with our team to get started.  

Sources: 

1 Joint Committee on Taxation. (2025). Estimated Revenue Effects of the “One Big, Beautiful Bill.”
2 Watson, Garrett, Huaqun Li, Erica York, Alex Muresianu, Alan Cole, Peter Van Ness, and Alex Durante. One Big Beautiful Bill Act Tax Policies: Details and Analysis. Tax Foundation, 4 July 2025, Tax Foundation, Washington, D.C.
3 Taylor, Kelley R. “New Cap on Gambling Loss Deductions Begins Soon: What to Know Now.” Kiplinger, 21 July 2025 (last updated), Kiplinger, Inc.,