Congress passed President Donald Trump’s tax megabill Thursday.
The “big beautiful” bill extends sweeping tax cuts, while adding a senior "bonus" to offset Social Security taxes and a bigger state and local tax deduction among other measures.
Here are the key tax changes and how the current law compares to the new legislation. The US Capitol building is seen on Capitol Hill, in Washington, DC on June 3, 2025.
Alex Wroblewski | AFP | Getty ImagesPresident Donald Trump signed his party's tax and spending package into law on Friday, ushering in major changes to Americans' finances.
The GOP's marquee "one big beautiful bill" makes Trump's 2017 tax cuts permanent while adding a senior "bonus" along with a bigger state and local tax deduction and higher estate and gift tax exemption.
Among other tax visions, the megabill also includes breaks for tip income, overtime pay and auto loans, as well as the creation of a new tax-advantaged savings account for children.
The chart below outlines these key tax changes and how they could impact your wallet. For more on how the legislation affects your money, check out our guide.