The One Big Beautiful Bill Act, signed July 4, 2025, introduced the biggest tax code changes in years. New deductions most people don’t know about yet.
No Tax on Tips
If you earn tips, they are now 100% exempt from federal income tax. A server earning $5,500/year in tips keeps all of it. File with the new Schedule 1-A.
No Tax on Overtime
Overtime pay is now tax-exempt. A nurse earning $7,700 in OT saves roughly $1,800 in taxes.
Auto Loan Interest Deduction
Car loan interest is now deductible up to $10,000/year on US-made vehicles. Check the State Tax Escape tool for state-level implications.
HSA Expansion
2026 limits: $4,300 individual, $8,550 family. Use the HSA Calculator to see lifetime value. Learn about capital gains tax treatment.
California Residents
See your full bracket breakdown with the California Income Tax tool. Read more in our tax reduction strategies guide.
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