Use our calculator to learn your tax savings from four key parts of One Big Beautiful Bill.
Table of Contents
Updated July 6, 2025
Congress has finished working on a huge law dubbed One Big Beautiful Bill, or OB3 for short. This law could put hundreds or even thousands of dollars back in your pocket over the next couple years. Use our calculator to see how you’ll benefit from four key changes.
The first version of our calculator produced estimates based on the version that passed the House on May 22. Our calculator has been updated for meaningful changes the Senate made before OB3 became law.
Four big beautiful changes
We built this calculator to deal with four areas of change:
- Changes in tax rates.
- Enhanced standard deduction.
- A new “senior bonus” deduction for taxpayers age 65+.
- An increased child credit.
One Big Beautiful Bill would make many other changes, such as eliminating tax on certain overtime and on cash tips. (See our complete guide to No Tax on Tips.) In this page, we’ll focus on just the four above. Examples of possible tax savings:
- A married couple with two qualifying children and income of $85,000 could see their income tax reduced by almost $600 per year.
- A single senior with income of $65,000 could save just over $800 per year.
Savings are much more modest if you can’t take advantage of the senior bonus or the increased child tax credit.
- Without a senior bonus or child tax credit, a couple with income of $120,000 would save less than $200 per year.
Let’s see where these tax savings come from.
Tax rates
Tax rates were scheduled to rise in 2026 when rates adopted in 2017 expire. OB3 makes the more favorable rates permanent. Beginning in 2026, a tweak to the inflation adjustment rules will allow us to pay somewhat less than if the 2025 rules were merely extended.
Standard deduction
Each year we get to choose whether to itemize deductions for medical expenses, charitable contributions and other items, or claim what’s known as the standard deduction. Under previous law the 2025 amounts were $15,000 for singles, $22,500 for heads of households, and $30,000 for joint returns. (Figures like these appear in our Reference Room.) Nowadays something like 90% of taxpayers claim the standard deduction.
OB3 increases it by $750 for singles, $1,500 for heads of households, and $1,500 on joint returns. An earlier version of the law had a more generous increase, but made it temporary. The final version makes the enhanced standard deduction permanent.
This change takes effect in 2025, so you’ll begin to save on the return you file early next year.
Your benefit from this increase depends on your tax bracket. If your top rate is 32%, an extra $750 deduction will save you $240. In the 12% bracket the savings are only $90.
One Big Beautiful Bill for Families
The child tax credit provides thousands of dollars in tax savings for many families. The amount was previously set at $2,000 for each qualifying child. This means a child that meets various requirements, including being under age 17 as of the end of the year. The credit is reduced by 5% of income above $400,000 if married filing jointly, or above $200,000 for any other filing status. Inflation adjustments did not apply to these figures.
Under OB3 your credit per qualifying child will be $2,200 in 2025. That amount will be adjusted for inflation in later years, but the dollar amounts where the credit is reduced remain fixed at $400,000 and $200,000.
A credit is much more valuable than a deduction of the same amount. For example, a $100 deduction produces $22 in savings for someone in the 22% tax bracket. A $100 credit produces $100 in savings.
Senior bonus deduction
You may recall that during the presidential campaign, President Trump said he wanted to eliminate the tax on Social Security benefits. One Big Beautiful Bill won’t do that, but for four years beginning in 2025 it provides a special senior bonus deduction to taxpayers age 65 and up. This $6,000 per person deduction is reduced by 6% of the amount your income is above $150,000 if married filing jointly or $75,000 otherwise.
The deduction is completely eliminated when income reaches $250,000 if married filing jointly or $175,000 otherwise.
The $6,000 bonus deduction does not relate directly to Social Security benefits. Seniors can claim it even if they don’t receive benefits, perhaps because they chose to delay payments until age 70. Likewise, those who take their benefits early cannot claim the deduction until the year they turn 65. Moreover, the amount of this deduction is not tied to the amount received in Social Security benefits, or the amount taxable. Depending on your situation, the bonus deduction may be larger or smaller than the taxable amount of your benefit.
One big beautiful calculator
Use this One Big Beautiful Bill calculator to see how much tax reduction you’ll get if Congress passes OB3. Choose your filing status and enter your adjusted gross income. (AGI is your income before deductions.) Then enter your number of qualifying children for 2025 and 2026, and check the box if age 65+.
- Figures labeled “Current” are calculated according to rules in effect without the changes OB3 would make. For 2026, “Current” is the estimated tax if 2025 rules were extended (not allowed to expire), but without the changes made by One Big Beautiful Bill.
Important: These are not calculations of the actual tax you will owe. The goal here is to estimate how much tax savings these key parts of OB3 may produce for someone in your situation.
Previous feature: Eight Ways to Save Money with Long-Term Capital Gain Tax Rates
Next feature: No Tax on Tips: 19 Things You Need to Know