The One Big Beautiful Bill Act (OBBBA) was signed into law in 2025 and made sweeping changes across the tax code. While some provisions took effect immediately, several significant individual tax changes did not become effective until January 1, 2026.

Now that we are more than halfway through 2026, many taxpayers may not realize just how many of these changes are already in effect. From charitable giving and education savings to estate planning and Health Savings Accounts (HSAs), the new rules may affect a variety of tax and financial planning decisions. Here are 8 provisions that may be most relevant for individuals and families.

1. Tax Rates Remain Largely Unchanged

One of the biggest questions heading into 2026 was whether many of the tax provisions enacted under the Tax Cuts and Jobs Act (TCJA) would expire. OBBBA largely resolved that uncertainty by permanently extending the current individual income tax bracket structure.

For most taxpayers, this means the existing tax rates remain in place, avoiding the significant rate increases that would otherwise have occurred after 2025. The legislation also provides additional inflation adjustments to some of the lower tax brackets.

2. Larger Estate Tax Exemption

For individuals concerned about wealth transfer and estate planning, OBBBA permanently increased the federal estate and gift tax exemption to an inflation-adjusted $15 million per person beginning in 2026, or $30 million for married couples.

While relatively few families are subject to federal estate tax, the higher exemption may provide additional planning flexibility for some high-net-worth households.

3. New Rules for Charitable Giving

Several charitable giving changes became effective on January 1, 2026.

Taxpayers who do not itemize deductions are now eligible for a charitable contribution deduction of up to $1,000 for single filers and $2,000 for married couples filing jointly.

At the same time, taxpayers who itemize are subject to a new limitation. Charitable contributions generally must exceed 0.5% of adjusted gross income before they become deductible.

4. Expanded 529 Plan Benefits

Families using 529 education savings plans gained additional flexibility beginning in 2026; the annual amount that can be withdrawn tax-free for K-12 education increased from $10,000 to $20,000 per student.

In addition, 529 plans may now be used for a broader range of educational expenses, including certain tutoring costs, testing fees, books, educational materials, and approved workforce credentialing programs. Together, these changes may expand the usefulness of 529 plans beyond traditional college expenses, depending on an individual’s circumstances.

5. Health Savings Accounts Become Available to More Taxpayers

OBBBA expands HSA eligibility beginning in 2026; taxpayers enrolled in certain Bronze-level and catastrophic health plans purchased through the Health Insurance Marketplace may now qualify to contribute to an HSA.

The legislation also adds greater flexibility for direct primary care arrangements and certain subscription-based healthcare services, creating additional opportunities for taxpayers who use HSAs as part of their long-term healthcare and retirement planning.

6. Expanded Tax Benefits for Families

Families paying for childcare may see greater tax benefits beginning in 2026; the maximum amount that employees can exclude through an employer-sponsored Dependent Care Assistance Program increases from $5,000 to $7,500 annually for most taxpayers.

Families with children may also benefit from changes to the Child Tax Credit; OBBBA made the expanded credit permanent and increased the maximum credit to $2,200 per qualifying child beginning in 2026, with future inflation adjustments built into the law.

7. Qualified Business Income Deduction Becomes Permanent

Many business owners and self-employed individuals have relied on the Section 199A Qualified Business Income (QBI) deduction since 2018.

As of 2026, taxpayers can take comfort in knowing that the deduction is no longer scheduled to expire. OBBBA permanently extended the deduction and expanded the phaseout ranges for higher-income taxpayers.

For owners of partnerships, S corporations, and sole proprietorships, these changes provide greater certainty when evaluating long-term tax planning strategies.

8. New Rules for Gambling Losses

Beginning in 2026, gambling losses become less favorable from a tax perspective.

Under prior law, taxpayers could generally deduct gambling losses up to the amount of their gambling winnings. Starting in 2026, only 90% of gambling losses may be considered when calculating the allowable deduction, and losses still cannot exceed gambling winnings.

While this provision primarily affects frequent gamblers, it serves as a reminder that gambling income remains fully taxable and should be carefully tracked throughout the year.

Looking Ahead

Much of the attention surrounding OBBBA focused on the high-profile 2025 provisions, such as deductions for tips, overtime pay, and certain auto loan interest. However, many important individual tax changes did not become effective until 2026 and are now part of the current tax landscape.

For individuals and families, some of the most notable developments include expanded 529 plan opportunities, broader HSA eligibility, changes to charitable giving rules, increased dependent care benefits, a permanently extended QBI deduction, and a significantly higher estate tax exemption.

As always, the impact of these changes will depend on your specific circumstances. If you have questions about how the new rules may affect your tax situation, please reach out to your Krilogy Tax Team. We would be happy to discuss planning opportunities and help you make the most of the tax benefits currently available.

This information is distributed for educational purposes only, and it is not to be construed as an offer, solicitation, recommendation, or endorsement. Krilogy® does not provide tax and legal advice. Krilogy® is affiliated with Krilogy Tax Services, LLC. Krilogy® Tax Services provides tax planning and preparation services for an additional cost to Krilogy® clients. You should consult your attorney or qualified tax advisor regarding your situation.