In 2026, the federal estate and gift tax exemption for individuals was expected to shrink from $14 million to $7 million. That change would likely have required many people to rethink their entire estate planning strategy. In a somewhat surprising twist, the OBBB raises that exemption to $15 million, preserving a powerful window for high-net-worth individuals and families to make strategic lifetime transfers. “The bottom line is that estate taxes will remain an issue for only a very small percentage of taxpayers,” Steffen says.

The OBBB’s reprieve is only temporary: The new threshold is scheduled to sunset at the end of 2027 unless Congress acts again. While you may not need to make any drastic estate planning overhauls, it’s still a good idea to review things like beneficiary designations, health care directives and the use of trusts to control assets after your death.

The OBBB also maintains the income tax rates and brackets that have been in place since 2017, rather than increasing them by 1%-4%, as had been planned. This delay of rate adjustments gives taxpayers a longer horizon to strategically manage how and when income is received. For instance, that may mean you don’t have to race to make sure you collect all your income—such as, say, a sizable year-end bonus—before December 31. With tax rates staying put in the near term, you have more flexibility to manage your income in ways that reflect both your near-term needs and long-term objectives.

The OBBB introduces several changes that make it especially important to revisit charitable giving strategies, both this year and in years to come. While philanthropy is often driven by purpose, the tax benefits tied to charitable contributions remain an important consideration in effective year-end planning.

Three new provisions in particular are reshaping how those benefits are realized:

1)   Higher deduction thresholds. The higher floor for claiming charitable deductions means smaller donations may no longer provide the same tax advantage they once did.

2)     Limitations on the value of deductions. High-income taxpayers will see new limitations on the value of all deductions, including charitable deductions. These limitations reduce the percentage of income that can be offset through charitable gifts.

3)     Flat charitable deduction. Starting next year, a flat charitable deduction will become available to all taxpayers. This above-the-line deduction allows those who don’t itemize to claim a modest deduction simply for giving.

“Together, these changes create a complex environment for taxpayers,” Steffen says. “Thoughtful planning will be needed to make the most of your charitable giving.”

For some donors, it may be advantageous to accelerate contributions into the current tax year to take advantage of existing rules. Others may benefit more by waiting until next year, when the flat deduction is in place. Tools like donor-advised funds (DAFs) and bunching strategies remain powerful options to maximize impact, allowing givers to time, structure and sustain their generosity while adapting to the evolving tax landscape.