Signed into Law July 4: What the New Tax Code Means for You
- Ascend Advisory Group
- Jul 18
- 2 min read

By Adam Day (LinkedIn)
How does the new tax bill affect me?

The new tax bill, signed into law on July 4, 2025, introduces significant changes to the U.S. tax code, primarily by making permanent many provisions of the 2017 Tax Cuts and Jobs Act (TCJA) that were set to expire at the end of 2025, while adding new provisions. Taxes and changes to the law affect every one of our clients, so we must highlight some key points and changes from what we have been used to for the last few years:
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Where were we?
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Recalling the previous tax code, the TCJA that was passed in 2017 and made some significant changes from the previous tax code. The main points targeted:
The doubling of the standard deduction
The elimination of the personal exemption tax deductions
Introduction to the SALT (State and Local Tax) cap at $10,000
Lowering of most of the marginal tax brackets by about 3% in each bracket

For most of our clients, this made tax filing a bit simpler, as many taxpayers transitioned to the standard deduction (at a higher amount) rather than itemizing deductions.
In addition to simplifying the filing, average Americans paid less in federal income tax than they did in 2016. While this is certainly case-specific it's assuming that all of the numbers were the same from year to year, and you lived in a state with average state and local taxes.
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Key Tax Changes
Please see the Wells Fargo Investment Institute Alert to see further details.
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In summary, the new tax bill allows for a permanent extension of the 2017 tax rates with further enhancements that would likely keep most investors' tax rates the same or lower, if you have high state and local taxes or are over the age of 65.
While this is not a complete list, the tax law was nothing short of a textbook at nearly 900 pages long. For further questions on how this might impact your investment strategy, please contact your financial advisor.
Further information can be found at: https://www.congress.gov/bill/119th-congress/house-bill/1/text.
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Wells Fargo Advisors Financial Network does not provide legal or tax advice.