Live in one of these states? You could see bigger tax cuts in 2026

Republicans, after a final rush, managed to get their ‘One, Big, Beautiful Bill’ (OBBBA) to President Donald Trump’s desk by the Fourth of July to sign into law. The mammoth legislation provides a host of tax cuts for Americans, some new and others extended from prior legislation that would’ve expired otherwise.

According to new analysis by the Tax Foundation, the average American taxpayer could see a $3,752 tax cut in 2026, compared to if tax provisions from the Tax Cuts and Jobs Act of 2017, during Trump’s first term in office, had been allowed to sunset. But there is “considerable geographic variation in tax benefits,” the nonpartisan think tank pointed out.

Residents in these US states will see bigger tax cuts in 2026

While residents of every state and county will see a tax cut in 2026, the OBBBA will be the most beneficial for those who live in Wyoming. The average tax cut will be $5,374, over 43 percent higher than the national average.

Coming in second and third for states whose residents will see the largest reductions are Washington, with an average tax cut of $5,373, and Massachusetts, $5,138.

Meanwhile the average tax cut in West Virginia and Mississippi will be the smallest in the nation, $2,503 and $2,400 on average, respectively, for those state’s residents.

At the county level, the lopsidedness of who benefits from the OBBBA tax cuts will be even more pronounced. Teton County in Wyoming will see an average tax cut of $37,372, the largest in the nation.

Number two and three are Pitkin County, Colorado and Summit County, Utah whose residents will see on average a $21,362 and $14,537 tax cut, respectively.

Rural counties around the nation will feel the smallest benefit from the OBBBA tax benefits, like Loup County, Nebraska. Residents there will see an average tax cut of $824 in 2026 according to the Tax Foundation analysis.

Why are tax cuts larger in some US states?

This dramatic difference in the size of tax cuts geographically for Americans likely comes down to locations that are receiving the largest tax cuts have higher-earning taxpayers and business owners.

Additionally, changes to the cap on state and local tax (SALT) “will tend to have the greatest impact on taxpayers in higher-tax localities on the coasts of the US,” states the Tax Foundation.

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