🏛️ OBBBA 2026

OBBBA Tax Calculators 2026 — One Big Beautiful Bill Act

11 free tools to estimate your savings under every major OBBBA tax provision. No sign-up required — instant results for individuals and businesses.

The One Big Beautiful Bill Act (OBBBA), signed in 2025, introduced sweeping tax changes for 2025–2028 including no tax on tips ($25K cap), no tax on overtime ($12.5K cap), a $40,000 SALT deduction cap (up from $10K), an extra $6,000 senior deduction, a $10K car loan interest deduction, $1,000 Trump Accounts for children, and restored 100% bonus depreciation for businesses.

How It Works

  1. Choose your provision from the Individual or Business sections below
  2. Enter your income, filing status, and relevant amounts
  3. Review your estimated tax deduction and federal savings
  4. Explore related tools to combine multiple provisions

OBBBA Provisions at a Glance

ProvisionBenefitWho QualifiesYears
No Tax on TipsUp to $25,000 deductionTipped workers (servers, bartenders, drivers)2025–2028
No Tax on OvertimeUp to $12,500 deductionHourly employees with OT premium pay2025–2028
SALT Cap Increase$40,000 cap (was $10K)Homeowners in high-tax states2025–2028
Senior DeductionExtra $6,000 deductionTaxpayers age 65+2025–2028
Car Loan InterestUp to $10,000 deductionBuyers of new US-assembled vehicles2025–2028
Trump Account$1,000 government contributionUS children under 18 with SSNOne-time
Bonus Depreciation100% first-year deductionBusinesses purchasing equipment2025+
R&D ExpensingImmediate deduction (was 5-yr)Businesses with R&D expenses2025+

Individual Tax Provisions

Business Tax Provisions

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About the One Big Beautiful Bill Act

The One Big Beautiful Bill Act (OBBBA) was signed into law in 2025 as one of the most significant tax reforms in recent years. The legislation introduced new deductions for individual workers, expanded existing provisions, and reversed several phase-outs that were reducing business competitiveness.

Key Individual Provisions

The OBBBA directly reduces the tax burden on working Americans through several targeted provisions. The "no tax on tips" provision allows tipped workers to deduct up to $25,000 in qualified cash tips from their taxable income. The "no tax on overtime" provision creates a similar $12,500 deduction for overtime premium pay. Both are above-the-line deductions available even to taxpayers who take the standard deduction.

For homeowners in high-tax states, the SALT deduction cap was quadrupled from $10,000 to $40,000, making itemized deductions viable for millions more filers. Seniors age 65 and older receive an extra $6,000 standard deduction that stacks on top of existing age-based additions. Buyers of new US-assembled vehicles can deduct up to $10,000 in car loan interest. And the Trump Account provision creates a one-time $1,000 government contribution to a retirement account for eligible children.

Key Business Provisions

The OBBBA restores 100% bonus depreciation under Section 168(k), which had been phasing down from 100% in 2022 to just 20% in 2026 under prior law. This means businesses can deduct the full cost of qualifying equipment and assets in the year they are placed in service. The Act also reverses the Section 174 R&D amortization requirement, allowing businesses to immediately deduct research and development expenses rather than spreading them over 5 years (domestic) or 15 years (foreign). For a business spending $1 million on domestic R&D at a 21% tax rate, this creates an immediate $168,000 cash flow advantage in year one.

Who Should Use These Calculators?

Each calculator above is a focused micro-tool designed for one specific provision. Use the Standard vs Itemized tool to see how multiple provisions combine, or the Tax Refund Calculator for a broader refund estimate. For a complete picture of your take-home pay, try the Salary Calculator USA 2026 or the Paycheck Calculator. All calculations use 2026 federal tax brackets and are updated as IRS guidance is published.

For informational purposes only. Tax law is complex and individual circumstances vary. Consult a qualified tax professional before making financial decisions based on these estimates.

Frequently Asked Questions

What is the One Big Beautiful Bill Act (OBBBA)?
The One Big Beautiful Bill Act is a comprehensive tax reform signed into law in 2025. It introduces or restores several tax provisions including no tax on tips ($25,000 cap), no tax on overtime ($12,500 cap), a higher SALT deduction cap ($40,000), an extra $6,000 senior deduction for those 65+, a car loan interest deduction for US-assembled vehicles, Trump Accounts for children, and 100% bonus depreciation for businesses.
How much can I save under the OBBBA?
Savings depend on your situation. A tipped worker earning $25,000 in tips in the 22% bracket could save $5,500 in federal income tax. A homeowner in a high-tax state could save thousands from the $40,000 SALT cap increase. A business investing $500,000 in equipment saves $105,000 in year-1 tax at a 21% rate through 100% bonus depreciation.
Which OBBBA provisions apply to individuals?
Individual provisions include: tips tax exemption (up to $25,000), overtime tax deduction (up to $12,500), SALT cap increase ($10,000 to $40,000), senior deduction ($6,000 extra for 65+), car loan interest deduction ($10,000 for US-assembled vehicles), Trump Account ($1,000 child retirement contribution), and expanded standard vs. itemized deduction analysis.
Which OBBBA provisions apply to businesses?
Business provisions include restoration of 100% bonus depreciation (Section 168k) and immediate R&D expensing under Section 174. Bonus depreciation was phasing down from 80% in 2023 to 0% by 2027 — the OBBBA restores it to 100%. R&D expenses that were required to be amortized over 5 years (domestic) or 15 years (foreign) can now be fully deducted in the year incurred.

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