Lawmakers achieved a key goal with the enactment of the One Big Beautiful Bill (OBBB) Act. The new law continues popular individual tax breaks that were created under the last major tax bill, the Tax Cuts and Jobs Act (TCJA) of 2017.
The TCJA’s lower tax rates, wider tax brackets, and almost doubled standard deduction amounts to expire at the end of 2025. Thanks to the OBBB, these tax code provisions are permanent. Plus, the OBBB created some new tax breaks.
So, what does all this mean to us taxpayers?
Taxes are, of course, personal, meaning that each filer’s circumstances affect how must a tax law will cost or save them.
But analysts at the Tax Foundation have run some numbers — okay, lots of numbers — and have some answers.
The bottom line, per those calculations, is that OBBBA will reduce federal taxes on average for individual taxpayers in every state. Overall, the average tax cut per taxpayer in 2026 will be $3,752.
That nationwide tax savings figure earns this weekend’s By the Numbers honor, but the Tax Foundation's analysis also includes lots of other amounts.
State-by-state savings: The Washington, D.C.-based tax policy organization estimated the average change in taxes paid per individual taxpayer under the OBBBA relative to prior law across each state and county from 2026 through 2035.
The $3,752 average tax savings amount next year comes from that drilled-down data across all individual tax filers throughout the United States.
The biggest tax winners in 2026 are filers in Wyoming, who should see savings of $5,375. The next four states with the largest average tax cuts from the OBBB are
Washington state taxpayers are a close second, with the Tax Foundation estimating they’ll see next year average tax savings of $5,372. Massachusetts taxpayers will get $5,139 on average in tax savings.
Those who will get the smallest average tax cuts next year are taxpayers in West Virginia, who’ll receive $2,503, and Mississippi at $2,401.
The tax organization also analyzed how the OBBB will affect taxpayers at the county level. It found the largest average tax cuts are found in mountain resort towns, with the smallest average tax cuts found in rural counties.
The Tax Foundation map below shows what we here in Texas can expect, on average, from the OBBB changes.
You can check out your state’s and county’s estimated OBBB savings at the Tax Foundation’s interactive map.
Other changes, different savings: As noted earlier, taxpayers’ personal situations will determine the final, actual tax savings.
The Tax Foundation notes that tax truism in citing that specific tax changes exhibit geographic variation.
For example, the temporary increase on the state and local taxes (SALT) federal tax deduction cap to $40,000 will benefit taxpayers in higher-tax localities on the U.S. coasts (think New York and New Jersey and California and Washington) more than in other parts of the country.
It also pointed out that the average tax cut falls to $2,505 in 2030 as certain individual changes, like deductions for tips and overtime income expire.
But be patient. Tax savings will head back up in 2035 to an average of $3,301 as inflation increases the nominal value of the permanent tax provisions.
If you want more facts and figures, check out the Tax Foundation’s post that includes the map, as well as OBBB average tax cuts calculation details and methodology.
You also might find these items of interest:
- New OBBB tax breaks taking effect in 2025
- Standard deduction amounts increase for 2025 tax year
- Tax law changes highlight the importance of professional tax help
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