What the New Tax Bill Means for Creatives: 2025 and Beyond
A Quick Look Back:
What Was About to Change?
Back in 2017, the Tax Cuts and Jobs Act (TCJA) overhauled the tax code with a set of changes scheduled to expire in 2025. Without intervention, we were looking at increased tax rates and reduced deductions starting next year. Enter: The One Big Beautiful Bill Act, which locks in some of those favorable changes—and introduces a few new ones, too.
Signed into law on July 4th, 2025, the Big Beautiful Bill Act presents major updates to the U.S. tax system. Some changes take effect right away; others roll out over the next few years—but nearly everyone will be impacted in some way.
What’s Staying (and Improving)
For Individuals
Lower Tax Rates: Tax brackets were set to increase by 2–3% in 2025. Good news—the new bill makes the current rates permanent.
Larger Standard Deductions: Permanently doubled—more income shielded from taxes. Starting in 2026, you’ll be able to deduct $16,000 for single filers or $32,000 for joint filers.
Child Tax Credit Boost: The child tax credit gets a bump from $2,000 to $2,200 per child. It’s now permanent—but phases out for high earners ($400K+ for joint filers, $200K+ for single).
Senior Deduction: If you’re 65+, you could qualify for a $6,000 deduction—even if you don’t itemize. AND, this is per person so, if you file married and both spouses are 65+ you’ll have a $12,000 deduction. It begins in 2025 and lasts through 2028 (phases out at $75K).
SALT Deduction Cap: Itemizers can deduct up to $40,000 in state and local taxes (up from $10,000)—but only through 2029. High earners ($500K+) will see that revert to $10,000. For everyone it will revert back down to $10,000 in 2030.
Tip Income Deduction: Up to $25,000 deduction on tips but the tips have to be voluntary and customary in the industry they were earned in. High income phase outs apply.
Overtime Compensation Deduction: Working extra? There’s a temporary deduction for overtime pay from 2025–2028 of up to $12,500 for single filers or $25,000 for joint filers. It has to be voluntary and customary in the industry it is earned in and phase out limits for high income earners apply.
For Business Owners: Business-Specific Changes
QBI Deduction is STAYING: The 20% Qualified Business Income deduction is now permanent! This is big news; the QBI deduction was set to expire and go away at the end of this year.
Bonus Depreciation is Back: 100% write-off for equipment and qualifying business purchases is restored, made permanent, and applies to 2025.
Opportunity Zones: This was extended and made permanent.
R&D Expenses: If your business has less than $31M in gross receipts, you can now immediately expense domestic R&D costs—even retroactively back to the end of 2021.
What It Means for You
Whether you're a designer navigating unpredictable cash flow, a content creator investing in equipment, or an agency owner eyeing expansion—these changes can shape your strategy in 2025 and beyond.
Now is the time to revisit your financial plans, especially if you:
Anticipate major purchases or charitable giving
Want to maximize deductions in the next few years
Need a clearer tax strategy going into 2026