The Tax Foundation says that the One Big Beautiful Bill Act (signed on July 4th) makes the most significant legislative changes to federal tax policy since the 2017 Tax Cuts and Jobs Act (TCJA). They point out how the measure makes permanent the individual tax changes first put in place by the TCJA, avoiding a massive tax hike on an around 62% of tax filers in 2026. In addition, they say the law provides additional tax cuts to individuals and businesses on top of TCJA extensions, including new deductions for tipped and overtime income, an expanded child tax credit and standard deduction, and permanence for 100% bonus depreciation and domestic research and development (R&D) expensing.
The the interactive map below illustrates the geographic variation in tax benefits from the OBBBA, relative to a scenario in which the TCJA individual tax provisions expire, and business taxes increase as previously scheduled starting in 2026. Taxpayers in Wyoming ($5,375), Washington ($5,372), and Massachusetts ($5,139) will see the largest average tax cuts in 2026, while taxpayers in West Virginia ($2,503) and Mississippi ($2,401) will see the smallest average tax cuts that year. Indeed…
Click here to read the full report at the Tax Foundation.
