Non-Partisan Foundation States Average American Will Save Over $3,000 Because of Trump’s “Big Beautiful Bill”

by Emmitt Barry, with reporting from Washington D.C. Bureau Staff

(Worthy News) – The average American taxpayer will see a $3,752 tax cut in 2026 thanks to the newly enacted One Big Beautiful Bill Act (OBBBA), according to a fresh analysis by the non-partisan Tax Foundation. The law, signed by President Donald Trump in July, marks the most significant change to federal tax policy since the 2017 Tax Cuts and Jobs Act (TCJA).

By making the TCJA’s individual tax cuts permanent, the OBBBA prevents an estimated 62 percent of filers from facing a tax hike in 2026. On top of that, it adds new benefits, including deductions for tipped and overtime income, an expanded child tax credit and standard deduction, and permanence for 100 percent bonus depreciation and domestic research and development (R&D) expensing.

Geographic Winners and Losers

While the nationwide average cut is $3,752 per taxpayer, the Tax Foundation study shows considerable differences across states and counties:
• Wyoming ($5,375), Washington ($5,372), and Massachusetts ($5,139) residents will enjoy the largest average tax savings.
• West Virginia ($2,503) and Mississippi ($2,401) will see the smallest gains.

At the local level, wealthy resort towns benefit most. Teton County, Wyoming, will lead the country with an average tax cut of $37,373 per filer. Pitkin County, Colorado ($21,363) and Summit County, Utah ($14,537) follow close behind. In rural America, the relief is smaller–Loup County, Nebraska, will average just $824 per filer in 2026.

Economic Impact

The Tax Foundation projects that OBBBA will generate about 938,000 full-time equivalent jobs nationwide in the long term. The gains will range from more than 132,000 jobs in California and 81,000 in Texas to around 1,700 new jobs in Vermont.

Economists attribute these job gains to the law’s pro-business provisions, such as permanent R&D expensing and bonus depreciation, which lower investment costs and encourage expansion.

Future of the Cuts

Although Americans will average a $3,752 cut in 2026, the figure will dip to $2,505 in 2030 as temporary deductions, such as for tips and overtime, expire. By 2035, however, permanent cuts adjusted for inflation will boost the average benefit back up to $3,301 per taxpayer.

The bill also includes a $40,000 cap on state and local tax (SALT) deductions, which falls to $10,000 after 2029, hitting high-tax states on the East and West Coasts hardest.

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