When Do ‘Big, Beautiful’ Megabill Changes Go Into Effect?
Key Takeaways
The new budget brings changes to your household finances including new tax breaks and social program cuts. See the timing dates for new provisions to go into effect.
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personal finance
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July 9, 2025
09:12 PM
NerdWallet
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The GOP-led Congress is walking a political tightrope with the rollout of key visions in Trump’s “one big, beautiful” bill, passed last week
With next year’s midterms looming, strategic timing is everything: tax breaks to households (and corporations) begin in 2025, while most sweeping social gram cuts are delayed until 2028
Learn more what’s in the budget here
Here’s a rundown of when the budget visions that could most affect your household will begin: Tax cuts and incentivesExtension of the 2017 marginal tax rates: Trump’s 2017 tax cuts for individuals and corporations were set to expire at the end of the year, but have now been made permanent, effective immediately
State and Local Tax (SALT) cap increases: The SALT cap rises to $40,000, beginning in the 2025 filing year, but will revert back to $10,000 in 2028
The SALT deduction is only available to taxpayers who itemize
Increased standard deduction: The current standard deduction — which was doubled by Trump’s tax cuts in 2017 — is made permanent
Starting in 2025, single filers can deduct an additional $750, while married couples can deduct $1,500
The additional deduction amounts will adjust to inflation beginning in 2026
The increases phase out for those with higher incomes
Standard deduction increase for seniors: Starting in 2025 and expiring after 2028, those 65 and older who earn less than $75,000 annually can deduct an extra $6,000 ($12,000 for married couples) on top of the standard deduction
Child tax credit: Increases — and makes permanent — the child tax credit to $2,200 for the 2025 tax year
The credit amount adjusts for inflation moving forward
No taxes on tips: Tipped income under $25,000 per year will be tax-deductible starting with the 2025 filing year
The vision expires after 2028
No tax on overtime: Overtime pay can be deducted — up to $12,500 for individual filers or $25,000 for married couples filing jointly — beginning with the 2025 tax year
The vision phases out for those with income above $150,000 or $300,000 for couples
Auto loan interest exemption for new vehicles: Allows a deduction of up to $10,000 in interest on loans for new car purchases
Begins 2025 and sunsets in 2028
Energy tax credits: End after Dec
Electric vehicle tax credits: End Sept. “Trump Accounts”: Babies born between Jan. 1, 2025 and Dec. 31, 2028 will be automatically enrolled in a “Trump Account” with a one-time $1,000 federal contribution
Section 179 deduction: Small es can write off 100% of equipment and certain commercial perty costs in the first year, effective Jan
It also raises the deduction cap on perty expenses to $2. 5 million, beginning Dec. 1099-K reporting threshold restoration: Reverts the threshold for online sales reporting to $20,000 or 200 transactions per year, as it was before 2021
The vision is applied retroactively to 2022
Social gram cuts Medicaid work requirements: Recipients must verify 80 hours per month of work, school, work training or volunteering
States must implement the new requirements by Dec
Supplemental Nutrition Assistance gram (SNAP) work requirements: Expands work requirements to able-bodied recipients, ages 18 to 64 (up from 54)
The requirements include those with children older than 6
Timing isn’t, but changes may begin sometime this year
Medicaid cuts: Medicaid funding reductions begin in 2028
The Congressional Budget Office jects nearly $1 trillion in cuts over a 10-year period; it could leave some 11. 8 million people losing health care coverage
SNAP cuts: Up to $230 million in SNAP food assistance cuts over 10 years, beginning in 2028
Affordable Care Act (ACA) rule changes: Tighter ACA enrollment rules roll out between 2025 to 2028, depending on the specific vision
Consumer tection cuts Funding cuts for the Consumer Financial tection Bureau (CFPB): Funding for the CFPB is cut in half, effective immediately
The CFPB oversees the consumer finance industry
Current federal student loan borrower repayment plans: Existing income-driven federal student loan repayment plans will sunset by July 1, 2028
This includes forgiveness under these repayment plans
New repayment plan for student loan borrowers begins: Enrollment in a new Repayment Assistance gram begins July 1, 2026
It is an income-driven plan that requires a $10 minimum monthly payment for borrowers and extends the timeline for forgiveness to 30 years
Graduate PLUS loan gram: Funding for Graduate PLUS loans gram sunsets as of July 1, 2026
Lifetime borrowing for graduate studies is also capped
Parent PLUS loan gram: Implements a $65,000 cap on Parent Plus loans as of July 1, 2026. (Photo by Chip Somodevilla/Getty Images News via Getty Images) the authorAnna HelhoskiAnna Helhoski is a senior writer/content strategist covering economic news, policy and trends
Her work has been syndicated in national news outlets including The Associated Press, The New York Times, The Washington Post and USA Today
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