A new analysis from the nonpartisan Tax Foundation projects that every state in the nation will see average tax reductions under President Donald J. Trump’s signature tax legislation, the One Big Beautiful Bill, which the White House says is the most significant middle-class tax cut in U.S. history.
According to the report, the law will lower federal taxes for individual taxpayers in every state, with the average taxpayer receiving a $3,752 cut in 2026. The Tax Foundation also estimates the measure will create approximately 938,000 full-time equivalent jobs nationwide, including more than 132,000 in California, 81,000 in Texas, and roughly 1,700 in Vermont.
“President Trump’s One Big Beautiful Bill is the largest, most consequential tax cut on the middle class ever. Now, the Tax Foundation — the leading nonpartisan tax policy nonprofit — confirms that,” said White House Deputy Press Secretary Anna Kelly. “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 legislation’s provisions include eliminating federal taxes on tips, overtime pay, and Social Security benefits; expanding the Child Tax Credit; offering “Made in America” manufacturing incentives; and reducing taxes for small businesses. Supporters argue that the package is helping to tame inflation, spur business investment, and drive wage growth — particularly for blue-collar workers.
Critics, however, have questioned the bill’s long-term fiscal impact, pointing to the potential for higher federal deficits. The White House contends the economic growth from the measure will offset lost revenue over time.
The Tax Foundation’s findings add fresh data to an already heated political debate, as the tax overhaul becomes a central piece of President Trump’s 2025 economic platform heading into the next budget cycle.