The One Big Beautiful Bill Act
Key considerations for global mobility programs
On July 4, 2025, a significant change swept through the tax landscape when the One Big Beautiful Bill Act (OBBBA) was signed into law. By making many of the expiring Tax Cuts and Jobs Act (TCJA) provisions permanent, the OBBBA brings important updates that global mobility professionals need to understand. In this article, we'll explore the key implications of the OBBBA and what they mean for your work, from state and local tax to compensation, benefits, and payroll.
Understanding the OBBBA changes
The OBBBA brings significant changes that will impact global mobility programs in various ways. Highlights include:
- The reduced individual income tax rates from the TCJA are now permanent (10 percent through 37 percent), providing long-term tax relief.
- The standard deduction is increasing slightly, and the cost-of-living adjustment is being modified starting from 2026, which could affect tax planning strategies.
- The personal exemption is effectively terminated, although taxpayers age 65 and older will receive a temporary senior deduction for tax years 2025–2028.
- There’s good news for high-tax state residents: the state and local tax (SALT) deduction limitation is temporarily increased for tax years 2025 through 2029. For 2025, the SALT limitation is increased to $40,000 ($20,000 for married filing separately). This limitation will increase by 1 percent each year through 2029.
- However, high-income taxpayers will face a new limitation on the tax benefits of itemized deductions, which could impact their overall tax liability.
- Additionally, a 1 percent excise tax will be imposed on certain international remittance transfers starting January 1, 2026, which may affect global transactions.
For continued insights on the impact of OBBBA on global mobility, download our article.
Dive into our thinking:
Explore more
Insight
July 31, 2025 | One Big Beautiful Bill Act: Global Mobility Considerations
This webcast explores the 'One Big Beautiful Bill Act' and its implications on global mobility programs and international assignees, including key changes to individual income tax provisions.
Insight
August 1, 2025 | The One Big Beautiful Bill Act: Employment Tax Implications
Tune in to our latest Mobility via Podcast episode to gain a deeper understanding of the One Big Beautiful Bill Act and its implications for employers, including new overtime and tip reporting requirements.
Insight
Capitol Hill Weekly
Brief overviews of legislative updates and their implications