TABS

We are breaking down the tax side of things with the One Big Beautiful Bill Act in terms you can understand. Follow us to make sure you don't miss out on the other important tax topics of this Bill!
Part 1 - Income Tax Rates
The tax rates were scheduled to increase up to 39.6% however, with the OBBBA, we are keeping the prior tax rates and increasing the income levels to help lower our tax liability.
What is a TAX RATE?
Your tax rate depends on your taxable income. Taxable income is calculated AFTER your deductions. For an example, If your total income is $80,000 in 2025 and you file Single, you would subtract $80,000 from your Standard Deduction of $15,750 = $64,250 is your Taxable Income. Based on the tax table, your tax rate is 22% because you are in-between the $48,475 and $103,350. Now, this does not mean you are taxed 22% on the full $64,250! The tax rate is marginal so a portion of it is taxed at each level [10%, 12% and 22%]
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