Here’s an update on the One Big Beautiful Bill, fresh from its tight Senate win and heading to the House.
Bottom line up front: The Senate kept almost all the real-estate perks from the original plan and added a few new benefits. If the House signs off, homeowners, landlords, sellers, investors and real estate agents will see more money in their pockets, clearer tax rules, and stronger support for affordable housing.
What stayed the same:
- Tax brackets and the standard deduction stay low and permanent. That means no surprise rate hikes and plenty more take-home pay starting in 2026.
- The tax break for small businesses and independent agents is even better than before. You’ll now be able to deduct nearly a quarter of your business income, up from one-fifth.
- The Low-Income Housing Tax Credit got a big lift. More credits mean more affordable apartment projects and rehab deals, especially in Indian and rural areas.
- Estate tax rules stay generous, with each person keeping up to $15 million free of federal tax when passing on a home or rental property.
New wins in the Senate version:
- The cap on state and local tax deductions jumps from $10,000 to $40,000. If you live in a high-tax state, this could save you thousands at tax time.
- A new exclusion on tips and overtime pay means service workers—from servers to landscapers—keep more of what they earn. That extra cash can help more people step into homeownership or cover rent.
- A higher standard deduction for seniors gives older homeowners a little extra cushion on their fixed incomes.
Next steps in the House: The House is set to vote any day now. If members pass the Senate text without changes, the bill goes right to the president for signing – possibly by Independence Day. If they tweak it, the Senate must approve again, and that could delay everything.
Why this matters: The package locks in low rates for everyday earners, rewards real estate professionals, and pours more support into affordable housing projects. Sellers and investors get clarity on the rules they’ve been waiting for, and agents can confidently advise clients on tax-friendly upgrades and strategies.
Stay tuned and get ready to update your 2026 tax plans. Share this with colleagues and clients so everyone knows what could change, what stays, and how to take full advantage when this bill becomes law.