The OBBB Act increases the standard deduction beginning in 2025:
$15,750 for single filers
$31,500 for married couples filing jointly
Inflation adjustments begin in 2026.
This change may reduce taxable income for millions of Americans, especially those who do not itemize deductions. For households whose deductions fall below the new threshold, the higher standard deduction simplifies filing and may lower overall tax liability. In combination with other provisions, this adjustment forms a key part of the broader tax relief offered by the legislation.
Sources 1. Congress.gov, July 4, 2025 2. Internal Revenue Service, July 25, 2025. 3. Internal Revenue Service, July 25, 2025.