Tax Foundation — Tax Policy

US Taxpayers to See a Nearly $2,300 Average Tax Cut in 2026 Under the Big Beautiful Bill

The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, makes the individual‑tax provisions of the 2017 Tax Cuts and Jobs Act permanent and adds new deductions for tipped and overtime income, an expanded child tax credit, and lasting 100% bonus depreciation and R&D expensing. Across the United States, the Tax Foundation estimates an average tax reduction of $3,813 per filer in 2026, with the largest state‑level cuts in Wyoming, Washington and Massachusetts. County‑level analysis shows Teton County, Wyoming, receiving an unprecedented $39,316 cut per taxpayer, while rural counties see cuts under $1,000. Business‑related tax relief contributes roughly $1,541 of the average cut and is projected to generate about 828,000 full‑time‑equivalent jobs over the long run.