Permanent Tax Brackets

Tax Bracket for someone making $58,000

Permanent Tax Brackets

Before OBBA, many TCJA provisions, like the lower income tax brackets, were set to expire after 2025. With OBBA:

• Tax rates and brackets are permanently fixed, giving individuals and families more certainty in planning their finances.

• The top federal rate remains at 37%, with lower brackets at 10%, 12%, 22%, 24%, 32%, and 35%, depending on income.

  
  

Why This Matters

• Predictability: Knowing that the brackets won’t change helps households and businesses plan long-term budgets and retirement savings.

• Planning: Financial advisors can better estimate tax liabilities for investments, estate planning, and charitable giving.

Bottom Line

OBBA not only preserves key TCJA benefits but also provides stability and certainty for taxpayers by locking in the current tax bracket structure. This is especially valuable in today’s ever-changing tax landscape.