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The White House highlighted a new economic analysis projecting that Americans will see an average federal tax cut of $3,752 in 2026 under President Donald Trump’s One Big Beautiful Bill Act.
A report from the nonpartisan Tax Foundation found that taxpayers in all 50 states would benefit from lower federal taxes next year, though the size of the tax cut varies across regions.
“President Trump’s One Big Beautiful Bill is the largest, most consequential tax cut on the middle class ever,” White House Deputy Press Secretary Anna Kelly said. “Between lower inflation, massive investments, and historic tax cuts, all Americans are reaping the benefits of the Trump Economy – and the Golden Age has just begun.”
The Republican-backed law made permanent several provisions from the 2017 Tax Cuts and Jobs Act, including lower income tax rates, a $15,000 standard deduction, a $2,000 Child Tax Credit, a 20 percent deduction for small business income and a cap on the home mortgage interest deduction at $750,000.
It also locked in three major business tax incentives, including full expensing for new capital investments, expanded deductions for corporate interest on debt and immediate deductions for research and development costs.
Temporary provisions, set to expire in 2030, include a quadrupling of the $10,000 state and local tax deduction cap, a $6,000 deduction for seniors, and deductions for tips and overtime pay, capped at $25,000 for single filers and $12,500 for married filers.
The Tax Foundation estimated that the law would create nearly one million full-time jobs in the long term. It said taxpayers in Wyoming, Washington and Massachusetts will see the largest average tax cuts of about $5,100 in 2026, while residents in West Virginia and Mississippi would receive the smallest, around $2,400.
Budget watchdogs have warned about the bill’s impact on federal debt. The Congressional Budget Office estimated the tax law would increase the national debt by $4.1 trillion by 2034, and the U.S. debt recently surpassed $37 trillion.
“The historic law — which includes No Tax on Tips, No Tax on Overtime, No Tax on Social Security, an expanded Child Tax Credit, Made in America tax breaks, small business tax cuts, and much more — is a cornerstone of President Trump’s economic agenda, which is taming inflation, driving historic investments, and fueling a blue-collar wage boom,” the White House said in a statement.
