Considering the most negatively impacted states by President Donald Trump’s “Big Beautiful Bill” are those with high-poverty populations and a reliance on federal aid, are there any states that stand to be financially better off under this legislation?
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GOBankingRates spoke to Matt Hylland, financial planner at Arnold and Mote Wealth Management, who shared his insight into the states where households will benefit most from this new bill.
New York
Wealthy households are on track to benefit most from the “Big Beautiful Bill” and specifically those Hylland said have income under $500,000 and more than $10,000 in state and local taxes (SALT).
Previously, Hylland said deductions for SALT were capped at $10,000. This amount has since been raised to $40,000 for those with income under $500,000. In a state like New York, which has some of the highest local tax rates in the nation, Hylland said the new cap on SALT deductions likely will impact high-earning households.
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“A New York household with $450,000 in income that is able to get $30,000 in additional federal tax deductions with this new law would see a reduction in their federal tax bill of $9,600 because of this SALT deduction increase,” he said.
Outside of New York, Hylland said Connecticut and Hawaii likely will be impacted due to their expensive local tax rates.
Texas
As reported by NBC News, the fossil fuel industry will receive several benefits from the law, including tax workarounds to avoid the 15% corporate alternative minimum tax and provisions to quickly move fossil fuel projects into development.
This is good news for the state of Texas, which has a significant fossil fuel presence. According to the Texas Comptroller of Public Accounts, there are 15 coal-fired power plants based in The Lone Star State.
Wyoming
Do you work in a role where you receive tips? CNN reported eligible workers with income from tips may deduct up to $25,000 in tip income from their federal taxes.
There are a few states where workers benefit most from this tax break. According to a 2024 CNBC infographic outlining states with the greatest percentages of workers who rely on tips, Kansas, South Dakota, Alaska and Wyoming are the four states where tips make up 30% of workers’ incomes. Wyoming ranks the highest at 33%.
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This article originally appeared on GOBankingRates.com: States Where Workers Will Benefit the Most From Trump’s New Tax Law
