On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was officially signed into law after passing both chambers of Congress. This legislation represents the most significant tax reform in years, and it reshapes key provisions that were originally set to expire at the end of 2025. For high earners, business owners, and families with complex planning needs, this law may offer new opportunities and increased predictability for long-term strategies.
The most notable change is that many of the 2017 Tax Cuts and Jobs Act provisions, which were scheduled to sunset, have now been made permanent. This means that the top income tax rate remains at 37 percent, the larger standard deduction is preserved, and lower rates on certain capital gains remain in place. By removing the uncertainty of a potential tax hike in 2026, the bill creates a more stable planning environment.
In addition, the legislation raises the state and local tax (SALT) deduction cap to forty thousand dollars for 2025, with a gradual phase-down beginning after 2029. Other enhancements, such as expanded deductions for business owners, improvements to immediate expensing rules, and favorable changes to pass-through entities, also provide meaningful benefits for those with complex financial situations. Estate tax provisions have been updated to preserve higher exemptions for longer, offering a valuable planning window for wealth transfer strategies.
Although some of these provisions will phase down over time, the new law reduces the risk of last-minute changes and allows families to plan with more clarity. With these updates, it is essential to review your current tax and estate strategies to determine whether adjustments are needed to take full advantage of the law while it is in effect.
At Gryphon Financial Partners, we are proactively evaluating these changes and identifying how they impact the integrated plans we create for our clients. From optimizing Roth conversions to evaluating business entity structures and refining charitable giving strategies, we are committed to ensuring that our clients’ plans remain both tax-efficient and aligned with their broader goals. If you would like to discuss how this new tax law affects your personal or business planning, we would be happy to schedule a discovery meeting. Early action may help you benefit from the opportunities this law creates, while ensuring that your wealth strategy remains strong for years to come.
Disclosure
This material is provided by Gryphon Financial Partners, LLC (“Gryphon”) for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Facts presented have been obtained from sources believed to be reliable. Gryphon, however, cannot guarantee the accuracy or completeness of such information. Gryphon does not provide tax, accounting or legal advice, and nothing contained in these materials should be taken as tax, accounting or legal advice. Individuals should seek such advice based on their own particular circumstances from a qualified tax, accounting or legal advisor.