On July 5th, President Trump signed a sweeping 900-page tax and domestic policy bill into law—what he calls the “One Big Beautiful Bill.” While the name may be tongue-in-cheek, the impact on American households is very real. For most, this legislation means a modest tax cut. For some, it means more changes to navigate.
The bill locks in the 2017 tax cuts permanently, with some new deductions sprinkled in for parents, retirees, and working professionals. According to the Tax Policy Center, 85% of households will see their after-tax income increase in 2026. Here’s a quick breakdown:
A major benefit for New Yorkers and others in high-tax states: The cap on the state-and-local tax (SALT) deduction has been raised from $10,000 to $40,000, with annual increases through 2029. That means many New York homeowners—especially in Westchester and the metro area—can now deduct significantly more of their state and property taxes. However, this benefit begins to phase out once income exceeds $500,000, so higher earners will want to consult their advisors to optimize deductions.
To help fund the tax cuts, the bill introduces cuts to several key government programs—especially Medicaid, SNAP (food aid), and federal student loans. If you rely on or expect to access these services in the future, these changes could be significant.
For example:
You may benefit from the new “no tax on overtime” deduction—up to $12,500 for individuals or $25,000 for couples. Tipped workers also get a potential tax deduction on up to $25,000 of reported tips.
The child tax credit increases to $2,200 in 2026 and is now indexed to inflation. New “Trump Accounts” give families $1,000 per child (born 2025–2028), with the ability to contribute $5,000/year for the child’s future.
Retirees under certain income thresholds will now enjoy a new $6,000 deduction (or $12,000 for couples) through 2028, in addition to existing senior deductions.
Thinking of going electric? Move quickly—EV tax credits expire September 30, but a new deduction allows up to $10,000 in auto loan interest to be deducted (for U.S.-made vehicles only).
While most Americans will see at least some tax relief, the largest benefits go to high earners. The top 20% of earners (those making $217,000+) will receive an average $12,500 tax cut. And the top 1%? They’re estimated to receive $117 billion in combined tax cuts in 2026 alone.
This disparity has drawn criticism—especially since cuts to healthcare, food, and education programs will affect vulnerable populations more heavily. While some call this a win for growth and business, others worry it deepens inequality.
Here’s the good news: regardless of political headlines, you’re still in the driver’s seat when it comes to your financial future.
At Samalin Wealth, we recommend:
Questions?
Bills like this are massive in scope—and complex in how they affect each household differently. If you’re wondering what this means for your specific tax situation, your retirement planning, please let us know.