Americans in All 50 States Will See Tax Cuts Under Trump's 'Big Beautiful Bill,' New Analysis Finds

Tax Foundation's new analysis estimates the average tax cut per taxpayer will be $3,752 in 2026.

Published: 8/15/2025, 5:34:36 PM EDT

Americans in All 50 States Will See Tax Cuts Under Trump's 'Big Beautiful Bill,' New Analysis Finds — A copy of an IRS 1040 tax form at an H&R Block office in Miami, on Dec. 22, 2017. (Joe Raedle/Getty Images)

A new analysis released on Friday estimates that Americans in every state will experience a tax cut next year under President Donald Trump's landmark tax policy.

Trump's One Big Beautiful Bill (OBBA) will reduce federal taxes on average for individual taxpayers in all 50 states, according to the analysis by nonpartisan tax policy nonprofit Tax Foundation.

“Across all individual tax filers throughout the country, the average tax cut per taxpayer will be $3,752 in 2026," according to the analysis.

Tax Foundation further examined tax cuts through 2035.

It found that the average tax cut will fall to $2,505 in 2030 as certain individual changes expire, such as deductions for tips and overtime income.

In 2035, tax cuts will rise again to $3,301 "as inflation increases the nominal value of the permanent tax cuts," according to the D.C.-based nonprofit think tank.

Tax Foundation found that taxpayers in Wyoming, Washington, and Massachusetts will see the largest average tax cuts next year, specifically $5,375, $5,372, and $5,139, respectively.

Meanwhile, taxpayers in West Virginia and Mississippi will see the smallest average tax cuts that year at $2,503 and $2,401 respectively.

The report, according to the White House on Friday, confirms the OBBA is the "largest, most consequential tax cut on the middle class ever."

Democrats, nonetheless, continue to oppose Trump's tax policy, arguing it hurts the middle class and only benefits the wealthy.

The law "steals from the poor to give to the ultra-rich," according to Democrats on the House Budget Committee, citing non-partisan analysis from the Congressional Budget Office (CBO) and Joint Committee on Taxation.

“Prices keep rising and American families are struggling. So what are President Trump’s Republicans doing to help? They passed a law that will make things worse by stealing from working families to give billionaires a tax break,” Ranking Member Brendan Boyle said in an Aug. 11 statement, adding the report also found the OBBA will add over $4 trillion to the national debt.

Citing the CBO analysis, Senate Democratic Leader Chuck Schumer (D-N.Y.) said Americans at the top are rewarded while those at the bottom are punished under Trump's policy.

"Today, yet another non-partisan analysis of Trump and Republicans’ 'Big, Ugly Betrayal' lays out the cold hard facts: while multi-millionaires get $300,000 per year in tax breaks, the least wealthy will lose $1,200 a year," Schumer said.

Tax Foundation pointed out the OBBBA makes permanent the individual tax changes first put in place by the 2017 Tax Cuts and Jobs Act, which avoids a tax hike on an estimated 62 percent of tax filers in 2026, according to its own estimates.

In addition to tax cuts, the Tax Foundation analysis released on Friday estimates Trump's policy will create 938,000 full-time jobs over the long run, ranging from more than 132,000 jobs in California and 81,000 jobs in Texas to about 1,700 new jobs in Vermont.