Major changes to the U.S. tax code are poised to strengthen homeownership, real estate investment, and the broader housing market.
On July 4, 2025, a sweeping tax reform bill—nicknamed the One Big Beautiful Bill Act—was signed into law by President Donald Trump. This landmark legislation represents a significant victory for the real estate industry, bringing long-anticipated policy wins that will benefit real estate professionals, homeowners, and investors alike.
Backed by years of advocacy by the National Association of REALTORS® (NAR), the new law introduces permanent tax benefits and key deductions that are expected to support housing growth, ease financial burdens on buyers, and incentivize real estate investment.
What’s in the New Tax Reform?
The bill includes several major provisions that directly impact real estate. Among the most impactful changes:
✅ Permanent Individual Tax Rate Reductions
The individual income tax cuts introduced in 2017 are now permanent, providing continued relief for homeowners and independent contractors.
✅ Qualified Business Income Deduction Made Permanent
The popular 20% deduction for pass-through businesses (Section 199A), widely used by REALTORS® and small brokerages, is now a permanent part of the tax code.
✅ Mortgage Interest Deduction Secured
One of the most important homeownership incentives—the mortgage interest deduction—has been permanently preserved, helping keep homeownership affordable.
✅ SALT Deduction Cap Increased
The cap on state and local tax (SALT) deductions has been quadrupled for the next five years, beginning in the 2025 tax year—great news for homeowners in high-tax states.
✅ 1031 Like-Kind Exchanges Protected
The bill maintains protections for 1031 exchanges, allowing investors to defer capital gains taxes when reinvesting in similar properties.
✅ Boost to Opportunity Zones and Child Tax Credit
Provisions were added to expand Opportunity Zone benefits and increase the Child Tax Credit—supporting investment in underserved communities and aiding families.
REALTORS® Played a Leading Role
This legislative win didn’t happen overnight. It’s the result of years of persistent advocacy by REALTORS® and the leadership of NAR. In the months leading up to the bill’s passage, REALTORS® nationwide ramped up efforts to educate lawmakers on how critical these reforms are to both the housing market and the broader economy.
NAR backed its message with data-driven research and polling, showing strong public support for real estate-friendly tax policies:
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92% supported tax-free savings accounts for first-time buyers
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91% supported maintaining the mortgage interest deduction
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86% favored lower individual income tax rates
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83% supported the 20% business income deduction
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61% supported lifting SALT deduction limits
These numbers, combined with real stories from communities across the country, helped push the bill across the finish line.
Why It Matters for Real Estate Professionals
For agents, brokers, and investors, this reform offers more than just tax savings—it provides greater financial predictability and stronger incentives for investment. These changes:
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Support first-time and first-generation homebuyers
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Encourage investment in housing supply
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Strengthen communities through homeownership and local reinvestment
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Offer long-term stability for self-employed professionals in the industry
Shannon McGahn, NAR’s chief advocacy officer, summed it up best:
“This is what happens when REALTORS® work together, advocate with facts, and speak up for their communities.”
Final Thoughts
This new tax law is a defining moment for the real estate industry. From preserving key deductions to enhancing housing incentives, it reflects the power of unified advocacy and the importance of real estate to the American economy.
For real estate professionals and clients alike, the road ahead looks brighter—and more financially rewarding—thanks to this transformative legislation.