For individuals across the U.S., the average tax cut per taxpayer under the One Big Beautiful Bill Act will be $3,752 in 2026, according to the Tax Foundation.
In a recent report, the research group estimated the average change in taxes paid relative to prior law across each state and county from 2026 through 2035.
The bill, signed into law in July, made permanent the individual tax changes put in place by the 2017 Tax Cuts and Jobs Act. The new law provides additional tax cuts to individuals and business on top of TCJA extensions.
These include new deductions for overtime and tipped income, an expanded child tax credit and standard deduction and permanence for 100% bonus depreciation and domestic research and development expensing.
Tax Foundation’s research found considerable geographic variation in tax benefits from the OBBBA, relative to a scenario in which the TCJA individual tax provisions expired and business taxes increased as previously scheduled starting in 2026.
Researchers estimated that the OBBBA will reduce federal taxes on average for individual taxpayers in every state, ranging from more than $5,000 in those with the largest tax cuts to less than $2,500 for those with the smallest ones.
At the county level, they found the largest average tax cuts in mountain resort towns, likely representing the residences of business owners and higher-earning taxpayers:
- Teton County, Wyoming: $37,373 per taxpayer in 2026
- Pitkin County, Colorado: $21,363
- Summit County, Utah: $14,537
They found the smallest average tax cuts in rural counties, such as Loup County, Nebraska, with an average tax cut of $824 in 2026.
According to Tax Foundation’s estimates, the average tax cut for all individual tax filers will fall to $2,505 in 2030 as certain individual changes such as deductions for tips and overtime income expire, then rise again to $3,301 in 2035 as inflation increases the nominal value of the permanent tax cuts.
Specific tax changes also exhibit geographic variation, the study found. For example, the $40,000 cap on state and local tax deductions (falling to $10,000 after 2029) will tend to have the greatest effect on taxpayers in higher-tax localities on the East and West Coasts.
Tax Foundation estimated that the OBBBA will create some 938,000 full-time equivalent jobs over the long run, ranging from more than 132,000 in California and 81,000 in Texas to about 1,700 in Vermont.
See the gallery for the 15 states where the Tax Foundation expects to see the biggest individual tax cuts in 2026.
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