• Makes the expiring individual provisions from the TCJA permanent.
• Top rate of 37%, new inflation adjustment for 12% and 22% brackets.

AMT exemption amounts:

MFJ: $137,000

MFS: $68,500

All other taxpayers: $88,100

Phaseout thresholds:

MFJ: $1,252,700

MFS: $626,530

All other taxpayers: $626,530

Rate at which the AMT exemption phases out: 25%

• Permanently extends the increased individual AMT exemption amounts and reverts the exemption phaseout thresholds to 2018 levels ($500,000 single/$1 million joint filers), indexed for inflation thereafter.
• Increases the rate at which the AMT exemption phases out to 50%.

• Makes TCJA standard deduction amounts permanent: $15,000 for single filer, $22,500 for HoH, $30,000 for married couples filing jointly.
• For tax year 2025, increases the standard deduction to $15,750 for a single filer, $23,625 for HoH, and $31,500 for married couples filing jointly.

• SALT deduction cap of $40,000, with phaseout based on MAGI exceeding $500k+ (minimum deduction floor of $10k), becoming $10,000 in 2030.

• Up to $10,000 deduction for qualified vehicle loan interest.
• Phases out above $100k MAGI ($200k for married) and phases out completely at $150k ($250k for married).
• Available 2025–2028, applies only to certain qualifying vehicles that were assembled in the U.S. and not purchased for commercial or resale purposes.

• Creates above-the-line deduction up to $25,000 for qualified tips received by an employee, phased out above $150,000 MAGI ($300k for married). Available 2025–2028.

• The nonrefundable child tax credit is increased to $2,200 per child beginning in tax year 2025 and indexed for inflation.

• Makes credit for other dependents permanent.

• Dependent Care FSA maximum increases from $5,000 to $7,500 starting in 2026.

• Creates an above-the-line deduction up to $12,500 ($25,000 for joint return) for overtime pay for employees, phased out above $150,000 MAGI ($300k for married).

• $6,000 deduction for seniors (age 65+) with AGI below $75,000 ($150,000 joint). Available 2025–2028.

• New tax credit for contributions to organizations that provide scholarships to K–12 students. The credit allowed to a taxpayer for a taxable year may not exceed the greater of 10% of the taxpayer’s AGI or $5,000.

• 529 plans now allow for additional education expenses such as homeschooling and certain post-secondary credentialing expenses.
• Annual 529 plan withdrawal limits increase from $10,000 to $20,000 for K–12 education expenses.

Saver’s Credit set to expire Dec. 31, 2025.

Ability to do tax-free rollover of amounts from Section 529 qualified tuition programs to qualified ABLE programs set to expire Dec. 31, 2025.

• Permanently extends increased contribution limits and provides an additional year of inflation adjustment for the limit base amount.
• The Sis increased by an additional $100 starting in 2027.
• Permanently allows designated beneficiaries who make qualified contributions to ABLE accounts to qualify for the Saver’s Credit and permanently allows tax-free rollovers from 529 qualified tuition programs into qualified ABLE programs.

• Permanently allows for the itemized deduction for only personal casualty losses resulting from federally declared disasters and expands the provision to include certain state-declared disasters.

• Permanently eliminates miscellaneous itemized deductions and removes unreimbursed employee expenses for eligible educators.

• Permanently lowers cap to $750,000 of debt.
• Treats certain mortgage insurance premiums on acquisition indebtedness as qualified residence interest.

• Beginning in 2026, high-income taxpayers must reduce their itemized deductions by 2⁄37% of the lesser of (1) total itemized deductions or (2) the amount their income exceeds the 37% tax bracket threshold.

• For taxable years after 2025, non-itemizers can claim a deduction of up to $1,000 for single filers/$2,000 for married filing jointly for certain charitable contributions.

• Beginning in 2026, individual taxpayers can only deduct charitable contributions to the extent they exceed 0.5% of their AGI (contribution base)—a new “floor” that reduces the value of smaller donations. Contributions that do not exceed this floor are disallowed but may be carried forward to future years under modified carryover rules.

• Deductible gambling losses are limited to 90% of gambling winnings.

• Makes permanent but stays at 20%. After much debate, there were no other changes to QBI eligibility.

• Not addressed in Senate.

• Not addressed in Senate.

Temporarily allowed telehealth coverage before deductible through 2024.

Disqualified HSA eligibility for direct primary care.

Prohibited use of HSAs for direct primary care fees.

• ACA Bronze plans are considered eligible plans for HSA contributions.
• Permanently allowed telehealth coverage before deductible.
• Direct primary care eligibility is allowed with some restrictions.
• Use of HSAs for direct primary care fees allowed if monthly fee is less than or equal to $150 (or $300 for families), adjusted for inflation.

• Modifies requirements to exempt where more than $20,000 or 200 transactions.

• Raises to $2,000 and indexed for inflation after 2024.

• Home improvement credits will continue through 2026, ends EV credits for vehicles purchased after Sept. 30, 2025, and tightens clean energy credits after 2025 but with some phaseout differences.

• Makes permanent, increases to $15M indexed for inflation.

• Effective starting in 2026.
• No contributions will be allowed until 12 months after the date of enactment.
• No withdrawals are allowed before the child reaches the age of 18.
• Individual contributions are not tax-deductible; contributions by certain entities are allowed and may be tax-deductible.
• When the child reaches age 18, the account is essentially converted into an IRA (unclear if it will be considered traditional or Roth).
• Distributions starting at age 18 for education, job training, or a home down payment.
• $5,000 annual contribution maximum, indexed for inflation after 2027.
• $1,000 will be funded by the U.S. government for each child born between 2025 and 2029.
• Employers can contribute up to $2,500 on behalf of their employees.
• The term “eligible investment” means any mutual fund or exchange traded fund that (i) tracks the returns of a qualified index, (ii) does not use leverage, (iii) does not have annual fees and expenses of more than 0.1% of the balance of the investment in the fund, and (iv) meets such other criteria as the Treasury Secretary determines appropriate for purposes of this section.

• Makes the exclusion for employer payments of qualified education loans permanent.

Parents of undergraduates could borrow up to the full cost of attendance through Parent PLUS loans.

• Terminates the federal Grad PLUS program starting on July 1, 2026. Grad PLUS loans received before June 30, 2026, can continue borrowing under current terms through the 2028–2029 academic year.
• Allows schools to set even lower borrowing limits, provided they apply them consistently within each program.
• No changes to current federal direct loan limits for undergraduate students.
• Parent PLUS: $20,000 per year with $65,000 lifetime cap per student. Graduate students: $20,500 annually with $100,000 total limit. Professional students: $50,000 annually with $200,000 total limit.