The One Big Beautiful Bill Act Comparison Guide 2026
The One Big Beautiful Bill Act (OBBBA) 2026 Comparison Guide
The One Big Beautiful Bill Act (OBBBA) made significant changes to the federal tax code, extending, modifying, and creating new provisions. This guide compares key provisions under prior law (TCJA + scheduled sunset) versus current law under the OBBBA, so you can see exactly what changed and plan accordingly.
Standard Deduction
- Pre-OBBBA (TCJA): $15,000 (single) / $30,000 (MFJ)
- Post-OBBBA (current law): $16,100 (single) / $32,200 (MFJ)
Itemized Deductions (Schedule A)
- SALT: Was $10,000 under TCJA. Now up to $40,400 under OBBBA (phaseout begins at $505,000 MAGI for single and MFJ).
- Mortgage interest: Both laws: up to $750,000 home acquisition debt. OBBBA also restores PMI deductibility.
- Charitable donations: Pre-OBBBA: no AGI floor. Post-OBBBA: subject to 0.5% AGI floor, with a uniform 2% limitation and maximum deduction capped at 35%.
- PEASE limitations: Were returning 1/1/2026 under sunset. Under OBBBA: uniform 2% limitation applies instead.
New Non-Itemized Below-the-Line Deductions (OBBBA only)
- Additional charitable deduction: $1,000 (single) / $2,000 (MFJ)
- Income from overtime: $12,500 (single) / $25,000 (MFJ) — phaseout at $150,000/$300,000 MAGI
- Income from tips: $25,000 — phaseout at $150,000/$300,000 MAGI
- Vehicle loan interest: $10,000 on U.S.-assembled vehicles — phaseout at $100,000/$200,000 MAGI
- Senior deduction (65+): $6,000 per eligible individual — phaseout at $75,000/$150,000 MAGI
Credits and Exclusions for Children
- Child Tax Credit: $2,000 pre-OBBBA → $2,200 (inflation-adjusted) under OBBBA
- Refundable Child Tax Credit: $1,700 ($1,000 starting 2026) pre-OBBBA → $1,700 permanent under OBBBA
- Child and Dependent Care Credit: 20–35% pre-OBBBA → 20–50% under OBBBA
- Dependent Care FSA: $5,000 pre-OBBBA → $7,500 under OBBBA
- Adoption Tax Credit: $17,670 pre-OBBBA → $17,670 with $5,120 refundable and inflation-adjusted under OBBBA
Premium Tax Credit
- Pre-OBBBA: Eligible above 8.5% of MAGI for those above 400% FPL
- Post-OBBBA: Cliff at 400% FPL — those above 400% of FPL are no longer eligible
AMT, QBI, Bonus Depreciation, and Estate Tax
- AMT exemption: Increased to $140,200 (MFJ) / $90,100 (single); phaseout rate raised to 50%
- QBI deduction: Permanent under OBBBA (was expiring 12/31/2025); minimum deduction of $400 added; phaseout range widened to $150,000/$75,000
- Bonus depreciation (Section 168): Was 40% in 2025 expiring 2027; now 100% permanent for purchases after 1/19/2025
- Estate and gift tax lifetime exemption: Was $13,990,000 (decreasing 1/1/2026); now $15,000,000 permanent
Student Loan Income-Driven Repayment Plans
- SAVE/REPAYE: Available pre-OBBBA → Eliminated under OBBBA
- IBR: Available (PFH applied) → Available (no PFH needed)
- PAYE/ICR: Available → Being phased out by 7/1/2028
- RAP: Not available pre-OBBBA → Available starting 7/1/2026
Download the 2026 OBBBA Comparison Guide
Get the complete side-by-side comparison table covering every major provision changed by the One Big Beautiful Bill Act. Use it to understand how the law affects your taxes, retirement planning, estate plan, and charitable giving strategy.
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