Your roadmap for income, business, and estate decisions under the OBBBA’s new tax rules
By Courtney Hoffman CFP®, AAMS™, EverPar Advisors
Key Takeaways:
- What’s the most meaningful positive change for high earners? The top marginal tax rate stays at 37% instead of rising to 39.6%. This creates steady, predictable savings for high earners and offers valuable stability for long-term planning.
- Where’s the biggest opportunity for wealth transfer? The federal estate and gift tax exemption will increase to $15M per person ($30M per couple) in 2026, offering a chance to protect more of your estate from the 40% estate tax and make strategic gifts or trust transfers.
- What planning challenges should I be aware of in light of the OBBBA? The new charitable deduction floor, tighter AMT rules, and shifts tied to OBBBA tax brackets mean some families will see reduced deductions or higher tax exposure. Proactive planning can help you capture available benefits while avoiding surprises.
If you’re managing meaningful wealth across generations, the One Big Beautiful Bill (OBBBA) creates both opportunities and considerations worth understanding now. Some provisions lower your tax burden, while others tighten deductions or expand AMT exposure. The key is knowing which pieces affect your family and how to respond thoughtfully.
These are the conversations we’re having with families right now (and what they could mean for your planning).
Related: Why Your Financial Plan Matters More Than Market Predictions
8 Questions (and Answers) About OBBBA Tax Brackets, Estate Exemptions, and What it All Means for You
One of the most meaningful changes in the Big Beautiful Bill is that the top marginal tax rate stays at 37%. It was scheduled to rise back to 39.6% in 2026, but the bill makes the lower rate permanent.
For high-earning families, that means ongoing, reliable savings rather than a sudden increase. It’s not a dramatic headline, but it does add up year after year.
Just as important, this provision creates stability. When the tax rules are consistent, we can plan with more confidence, whether that’s timing income, making retirement contributions, or coordinating long-term investment decisions.
2. What’s changing with estate and gift tax exemptions in 2026?
One of the biggest opportunities in the OBBBA is the higher federal estate and gift tax exemption. As of December 31, 2025, the exemption is $15 million per individual or $30 million for married couples.
In simple terms, more of your wealth can pass to the next generation without triggering the 40% federal estate tax. For families thinking multiple generations ahead, this exemption creates breathing room to structure trusts, make strategic gifts to adult children, or fund education for grandchildren, all while potentially keeping more wealth in the family.
3. Is the OBBBA raising the SALT deduction cap?
Yes, though there are a few important limitations to understand.
The state and local tax (SALT) deduction cap is being raised above the long-standing $10,000 limit. That’s meaningful for families who pay higher state income or property taxes.
However, two caveats matter:
- The expanded deduction begins to phase out once your modified AGI exceeds $500,000.
- The change is temporary; the cap is scheduled to drop back to $10,000 in 2030.
In other words, there’s a use-it-while-you-have-it window here, but it’s not unlimited. We’re helping you think about timing for major expenses and preparing for what happens when the cap comes back. The key is taking advantage of the benefit while it’s available, while keeping an eye on the longer horizon.
4. What’s the new charitable deduction floor?
This is one of the tougher changes in the Big Beautiful Bill, especially for families who give generously.
In 2026, your charitable deductions won’t start counting until your giving exceeds 0.5% of your adjusted gross income (AGI). For many donors, that means a smaller portion of your gifts will provide tax benefits.
There’s also a new cap on the value of itemized deductions. Even if you’re in the top 37% bracket, deductions may be valued at 35%. For example, if you have $1 million in itemized deductions, your tax benefit drops from $370,000 to $350,000—a meaningful difference over time.
Because of this, we’ve been proactive with charitably minded clients. For some families, it may make sense to accelerate 2025 giving. Others may benefit from charitable bunching or donor-advised funds to preserve both impact and tax efficiency.
Your generosity doesn’t change because of tax law, but how we structure that generosity can make a real difference in what you’re able to give over the years ahead.
5. How does the OBBBA’s pass-through deduction help business owners?
The 20% qualified business income (QBI) deduction is now permanent under the Big Beautiful Bill, and if you own an S-corporation, partnership, or LLC, this may be a major win.
That deduction can lower the effective tax rate on business income by up to 7.4%. Making it permanent gives business owners the consistency they need for long-term planning.
This change can affect how you think about reinvesting in the business, setting compensation, and structuring growth. We work closely with you and your CPA to make sure you’re capturing the full value of this deduction and integrating it thoughtfully into the rest of your plan.
6. What is the 100% bonus depreciation provision?
This is another meaningful win for business owners. Under the Big Beautiful Bill, 100% bonus depreciation becomes permanent for assets acquired after January 19, 2025.
You can now deduct the full cost of qualifying purchases (equipment, vehicles, technology, and more) in the year you buy them, rather than spreading the deduction over several years. And beyond the near-term benefit, this provision can support faster upgrades, more R&D, and greater flexibility in how you invest in your company’s growth.
The key is timing. If you’re weighing significant equipment or technology purchases, the tax treatment may make this the right moment. We help you evaluate these decisions in the context of your broader financial plan.
7. Is AMT coming back stronger in 2026?
A Quick Refresher: What is the alternative minimum tax (AMT)?
Think of AMT as a backup tax calculation that kicks in when your deductions get too large. Under the new rules, more families will face it (especially those with significant itemized deductions or stock compensation). We track this throughout the year, so you’re never caught off guard.
Under the new law, the AMT exemption phase-out will begin at $1 million for joint filers, meaning more households will be pulled into AMT, even if you’re thoughtful about deductions. This especially affects people with large itemized deductions or incentive stock options, which we frequently see with executives and business owners.
Because these calculations interact with your investment strategy, estate plan, and business structure, we monitor your exposure throughout the year, not just at tax time.
8. How do I know what applies to my situation?
This is the question that matters most, and the honest answer is that it depends entirely on your circumstances. Here’s a quick recap of the key changes we’re seeing across the board.
The positives:
- Permanent 37% top OBBBA tax bracket (instead of reverting to 39.6%)
- Estate and gift tax exemption of $15M per person / $30M per couple
- Higher SALT deduction cap through 2030
- Permanent 20% QBI deduction for pass-through business income
- Permanent 100% bonus depreciation for business assets
The considerations:
- New charitable deduction floor (0.5% of AGI starting in 2026)
- Itemized deduction value cap (35% instead of 37%)
- Tighter AMT, with more families pulled in
- Some provisions are temporary
- Wagering losses are now capped at 90% of winnings
Taken together, the Big Beautiful Bill is projected to save high-net-worth families 5–10% on federal taxes in the near term, especially through estate planning and business incentives. We work with you and your CPA to capture these benefits while navigating the new limitations, coordinating the details so nothing falls through the cracks.
Related: Your Wealth Deserves a Quarterback, Not Just Players
Aligning Today’s Choices with Tomorrow’s Goals
The Big Beautiful Bill brings real opportunities and real planning considerations, often within the same provision. What matters most is understanding which changes apply to you and responding with strategy, not guesswork.
These decisions ripple across your taxes, estate plan, business, and charitable goals, and we’re here to help you navigate them with clarity and confidence. If any of these provisions raised new questions for you, or if there’s something we didn’t cover that’s on your mind, please reach out to your EverPar team. We’re always here to talk through what this means for your family.
If you’re not currently working with us, we invite you to explore our Foundation Session, a complimentary meeting designed to give you clarity on exactly these kinds of questions. Because your financial plan matters more than market predictions, and right now, it matters more than political headlines too.
References:
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