Amid all the talk about the One Big Beautiful Bill, some taxpayers may have missed the news they likely avoided a big tax hike.
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Congress passed the bill and made permanent tax cuts from President Donald Trump’s first term, along with additional ones. Here’s a look at the changes to federal taxes.
Average Tax Savings
As noted by the Tax Foundation, the bill includes the most significant legislative changes to federal tax policy since the Tax Cuts and Jobs Act (TCJA) of 2017. It makes permanent individual tax changes that were put in place by the TCJA. The Tax Foundation explained that those changes mean 62% of tax filers in 2026 will avoid a tax hike.
Further, the average tax cut per taxpayer for 2026 will be $3,752, per the Tax Foundation.
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Average Tax Savings by State
Based on data from the Trump administration and the Tax Foundation, here are the states where taxpayers will see the largest average tax cuts in 2026:
- Wyoming: $5,375
- Washington: $5,372
- Massachusetts: $5,139.
On the other hand, taxpayers in West Virginia ($2,503) and Mississippi ($2,401) will see the smallest average tax cuts in 2026.
When you break down the tax cuts by county level, the largest are going to happen in mountain resort towns that are home to high-earners and business executives, per the Tax Foundation. The smallest tax cuts, however, are in rural counties.
Putting the Tax Cuts in Perspective
When you put the federal tax cuts in perspective, many taxpayers may not feel that much of a change in their overall finances. At the same time, the tax cuts do give taxpayers more money to spend on food, housing and other things amid inflation and tariff impacts.
Along with the tax cuts, the One Big Beautiful Bill also made cuts to social spending on Medicaid and food benefits. As noted by Axios, those cuts will likely outweigh the tax benefits for lots of lower-income Americans.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: Trump’s Big Beautiful Bill Reduces Federal Taxes in Every State: Here’s How Much of a Cut You Could See
