The One Big Beautiful Bill Act (OBBBA), signed in mid-2025, is the most significant federal tax legislation since the 2017 Tax Cuts and Jobs Act. It made several individual-tax provisions of TCJA permanent, raised a few deduction and credit amounts retroactively for 2025, and introduced some new provisions for older taxpayers.
This article covers what changed for married couples filing jointly. We’ll stay focused on what affects the typical household — if you’re a business owner, a high-net-worth taxpayer, or have a complex international situation, OBBBA touches more provisions than we cover here, and you should talk to a CPA.
The changes that affect almost every joint filer
Standard deduction increased — retroactively to 2025
The biggest immediate change. The original 2025 standard deduction (set by the IRS in Rev. Proc. 2024-40 before OBBBA passed) was:
- MFJ: $30,000
- Single and MFS: $15,000
OBBBA raised those numbers for the same 2025 tax year:
- MFJ: $31,500 (a $1,500 increase)
- Single and MFS: $15,750 (a $750 increase)
For 2026, the IRS published the new inflation-adjusted figures incorporating the OBBBA bump:
- MFJ: $32,200
- Single and MFS: $16,100
If you ran your 2025 tax estimate before OBBBA passed, your numbers are stale — you’re entitled to a $1,500 larger standard deduction, which at a 22% marginal rate is about $330 of additional tax savings, or $360 at 24%.
Child Tax Credit increased to $2,200 per child
For years, the per-child CTC was $2,000 (the TCJA amount). OBBBA permanently raised this to $2,200 per qualifying child, effective 2025 and forward. The credit will be inflation-adjusted going forward.
The phaseout thresholds were not changed — the credit still starts phasing out at $400,000 of AGI for MFJ ($200,000 for other filing statuses), at a rate of $50 per $1,000 over the threshold.
The refundable portion (Additional Child Tax Credit) for 2026 is up to $1,700 per child.
For a household with two qualifying children under 17, OBBBA’s CTC bump adds $400 of credit per year ($200 × 2). That’s small but compounding over the years the credit is available.
Other changes you might not notice
OBBBA also adjusted several smaller items:
- EITC indexed slightly higher (mostly relevant for low- to moderate-income couples)
- Some retirement contribution limits adjusted under separate rules
- SALT cap remained at $10,000 — no change. This was a hot political topic in the OBBBA debate, but the cap survived in its current form.
- State and local tax workarounds at the entity level (PTE elections) remained intact, which matters for business owners in high-tax states
What didn’t change
A few things people assumed OBBBA would touch but didn’t:
- Tax brackets and rates. The 10/12/22/24/32/35/37 bracket structure is unchanged. OBBBA made the TCJA bracket schedule permanent (it was scheduled to sunset at the end of 2025), but didn’t shift the breakpoints beyond normal inflation adjustment.
- Long-term capital gains and qualified dividend rates. Still 0%, 15%, 20%, with inflation-adjusted thresholds.
- Net Investment Income Tax (3.8% on investment income above $250K MFJ AGI) is unchanged.
- Additional Medicare Tax (0.9% on wages above $250K MFJ) is unchanged.
- SALT $10,000 cap as mentioned.
- Estate and gift tax exemption rules continued under the prior framework with normal inflation indexing.
- AMT exemptions indexed normally but no structural changes.
The over-65 deduction (new under OBBBA)
OBBBA introduced a new deduction for taxpayers age 65 and older: $6,000 per qualifying taxpayer, available whether you take the standard deduction or itemize. Both spouses if both are 65+ get the deduction separately ($12,000 combined).
The deduction phases out at a 6% rate for income above:
- Single: $75,000
- MFJ: $150,000
So a married couple both over 65 with modest retirement income gets the full $12,000 deduction; a couple at $300,000 of income gets none of it (they’ve fully phased out).
This is a meaningful change for retired couples on Social Security and pension income. It’s separate from the existing additional standard deduction for being 65 or older (which still applies on top).
What this means for your 2025 return
If you’ve already filed your 2025 tax return using the original $30,000 / $15,000 standard deduction or the $2,000 CTC, you can file an amended return (Form 1040-X) to claim the OBBBA-increased amounts. Whether it’s worth the paperwork depends on how big your refund increase would be:
- Standard deduction bump alone: at the 22% bracket, $1,500 × 22% = $330 of additional refund for MFJ
- CTC bump alone: $200 per qualifying child
For most couples, that’s $400–800 of additional refund. Worth amending if you do your own taxes, especially worth amending if your software has been updated to support the new figures. Less worth it if you’d pay a preparer to amend.
If you haven’t filed yet (extensions, late returns), use the OBBBA-amended figures — most tax software has been updated. The Combined Income Tax Estimator uses the post-OBBBA 2025 numbers.
What this means for your 2026 planning
For tax year 2026, OBBBA is already baked into the official IRS figures (Rev. Proc. 2025-32, published October 2025). No special action needed. The bigger standard deduction and CTC are simply the new normal.
Practical implications:
- Re-check your W-4. If you set Step 4(c) extra withholding in 2024 or early 2025 using the pre-OBBBA numbers, you’re now slightly over-withholding. Our W-4 calculator uses the current figures.
- Reconsider standard vs itemized. With a higher standard deduction, more couples will find that the standard beats itemizing — especially in states without high property or income tax. If your itemized total used to just barely beat $30,000, it may not beat $32,200.
- Update any back-of-envelope tax estimates. Mental shortcuts like “marginal rate is roughly 22%, so my taxable income is around $X” still work — the brackets didn’t change — but the deduction taking you from gross to taxable did.
When to expect the next round of changes
Significant federal tax legislation typically comes every 8 to 10 years. TCJA passed in late 2017; OBBBA passed in mid-2025. The OBBBA provisions are mostly permanent (or have long sunset dates), so the calendar is reset.
In the short term, expect annual inflation adjustments via IRS Rev. Procs. each fall — those tweak the brackets and deduction amounts but don’t reshape the structure. Anything bigger requires Congress.
Bottom line
For most married couples, OBBBA’s practical effect is modest: a slightly larger standard deduction, a slightly larger Child Tax Credit, and a meaningful new deduction for those 65+. The bracket structure, capital gains rates, and major surcharges are unchanged. Your 2026 return will look very similar to your 2025 return, just with the slightly higher standard deduction and CTC pre-loaded by tax software.
Use the Combined Income Tax Estimator to see your full 2026 picture with the new numbers. If you have meaningful 2025 differences (the standard deduction or CTC bumps), check whether amending is worth your time before the three-year amendment window closes.