What Trump’s 'one big beautiful' tax-and-spending bill means for your money
Trump’s megabill will bring sweeping changes for household finances.
House Republicans on Thursdayvoted to approvePresidentDonald Trump's "one big beautiful" tax-and-spending bill, which will bring sweeping changes to Americans' finances.
After theSenate passed its versionon Tuesday, the House vote sends the multi-trillion-dollar domestic policy legislation to Trump's desk for signature.
The final bill makes permanent Trump's2017 tax cutswhile adding new relief, including a senior "bonus" tooffset Social Security taxesand abigger state and local tax deduction. The plan also has tax breaks fortip income, overtime pay andauto loans, among other provisions.
The GOP's marquee legislation will also enact deep spending cuts to social safety net programs such asMedicaidand food stamp benefits,end tax credits tied to clean energyand overhaulfederal student loans.
Trump's legislation couldbenefit higher earnerswhilehurting the lowest-income Americanswho rely on Medicaid and SNAP, according to a Yale Budget Labanalysisreleased on Monday.
Here are some of the megabill's key provisions — and how those measures could impact your wallet.
Follow along from start to finish, or use the table of contents to jump to the section(s) you want to learn more about. Need a refresher on key tax terms?Start here.
Trump's 2017 tax cut extensions
During Trump's first term, theTax Cuts and Jobs Actof 2017, or TCJA, enacted sweeping changes to the U.S. tax codethat lowered taxes for many households.
Some of the key provisions includedlower tax brackets, bigger standard deductions, a more generouschild tax credit, a higherestate and gift tax exemptionand a20% deductionfor pass-through businesses, among other measures.
These provisions were scheduled to expire after 2025 without action from Congress. (Absent extensions for the TCJA provisions, more than 60% of taxpayers could have seenhigher taxes in 2026, according to a 2024 report from the Tax Foundation.)
Trump's new legislation makes permanent the 2017 tax cuts while increasing thesetax breaks:
—Kate Dore
'SALT' deduction
When you itemize tax breaks, thestate and local tax deduction, known as SALT, provides a federal deduction for state and local income taxes and property taxes.
Trump's 2017 tax cuts added a $10,000 SALT deduction cap, which has been a critical issue for certain lawmakers in high-tax states such as New York, New Jersey and California.
TheSALT deductionwas unlimited before 2018. But thealternative minimum taxreduced the benefit for some wealthier Americans.
The new legislation temporarily lifts the SALT cap to $40,000 starting in 2025. That benefit begins to phase out, or decrease, for consumers with more than $500,000 of income.
Both figures would increase by 1% yearly through 2029, and the $40,000 limit would revert to $10,000 in 2030.
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