On July 4, President Trump signed into law a sweeping new tax package that locks in—and in some cases expands—many of the provisions from the 2017 Tax Cuts and Jobs Act (TCJA). While the headlines have focused on the extension of lower tax rates, there’s a lot more buried in the fine print. And while some parts of the law are permanent, others expire in just four years, setting up another potential policy showdown near the end of the decade.

The new law is a mixed bag of tax relief, expanded deductions, and sunset clauses. For retirees, working families, and high earners in high-tax states, there’s something here for everyone—but also a few caveats that investors need to understand.

What’s Staying for Good

The most important takeaway is that the core elements of the 2017 TCJA are no longer set to expire after 2025. That includes the expanded standard deduction, the current seven tax brackets, and the 37% top rate. Mortgage interest deductions remain capped at loans up to $750,000, and the standard deduction is now pegged at $15,750 for single filers and $31,500 for joint filers—indexed for inflation beyond 2025.

One significant change affects the deduction for state and local taxes (SALT). The new law raises the SALT cap to $40,000 through 2029, but only for filers with income under $500,000 ($250,000 for married filing separately). After 2029, the deduction drops back down to the original $10,000 cap—and becomes permanent.

High-net-worth households benefit from the increase in the lifetime gift and estate tax exclusion: $15 million for individuals and $30 million for couples, up from $13.99 million and $27.98 million, respectively. These thresholds will also be adjusted for inflation going forward.

Meanwhile, families with children can count on a permanently enhanced Child Tax Credit, now set at $2,200 per child starting in tax year 2025. And for charitably inclined investors, non-itemizers can now deduct up to $1,000 in cash donations ($2,000 for couples). However, there’s a catch: the full deductibility of charitable gifts is now subject to a 0.5% AGI floor and capped at 35% for those in the highest tax bracket.

On the flip side, the law formally eliminates personal exemptions—previously a deduction of over $4,000 per individual. This was technically already suspended under the TCJA, but it’s now officially off the books.

What’s Temporary (For Now)

Several new deductions and tax breaks have an expiration date: they’ll last for tax years 2025 through 2028 unless extended by future legislation.

One of the more eye-catching changes is a capped deduction for tip and overtime income. Tipped workers can deduct up to $25,000 in reported income; the same limit applies to overtime pay. The deduction phases out for individuals earning over $150,000 and married couples above $300,000.

Seniors also get a short-term boost. Individuals age 65 and older can deduct an additional $6,000, phased out above $75,000 in income ($150,000 for joint filers). This stacks on top of the existing senior deduction, providing meaningful relief for retirees on fixed incomes.

Another temporary perk: buyers of U.S.-assembled cars can now deduct up to $10,000 in loan interest, provided their income is below $100,000 (or $200,000 for joint filers). It’s a modest incentive, but one that could benefit middle-income households in the market for a new vehicle.

New Tools for Savers

The law introduces a new child-focused savings tool called the “Trump Account,” a nod to Connecticut’s Baby Bonds. These accounts can be funded with up to $5,000 per year and will convert into traditional IRAs when the child turns 18. Parents of babies born between 2025 and 2028 are eligible for a $1,000 federal match to jumpstart the account. Contributions aren’t income-restricted and can be made by relatives or other taxable entities.

Health Savings Accounts (HSAs) and 529 plans also get expanded functionality. HSAs can now be used with a broader range of health plans, and the law makes telehealth access permanent. Meanwhile, 529 funds can now cover testing fees, educational therapies, and non-home tutoring for students with disabilities, along with credentialing programs beyond college.

What Didn’t Make It

One high-profile proposal that didn’t make the final cut: eliminating taxes on Social Security benefits. Today, up to 85% of Social Security income remains taxable for individuals earning more than $34,000 and couples earning more than $44,000. The added senior deduction could help offset those taxes for some retirees, but the broader exemption is off the table for now.

What It Means for Investors

From an investing perspective, this new tax landscape offers both opportunity and complexity. On the one hand, the continuation of lower rates and a higher standard deduction make tax planning a bit easier for the average investor. High-income earners in coastal states will welcome the temporary SALT cap increase, and estate planning just became more generous—for now.

But with many provisions set to expire after 2028, the stability investors crave may prove short-lived. And the law’s funding mechanism—rolling back clean energy incentives and trimming Medicaid—could have long-term market implications in sectors like renewables and health care.

As always, it’s a good idea to review your financial plan and estate strategy under the new rules. While the tax code may have just gotten a bit more generous, it also got more nuanced. Consult your tax professional to make sure you’re making the most of the opportunities while staying ahead of potential pitfalls.