Hawaii average annual tax cuts under 'Big Beautiful' Bill. 

The One Big Beautiful Bill Cuts Taxes Across the US, New Analysis Finds

by Garrett Watson, Tax Foundation, August 13, 2025

The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, makes the most significant legislative changes to federal tax policy since the 2017 Tax Cuts and Jobs Act (TCJA).

Notably, the OBBBA makes permanent the individual tax changes first put in place by the TCJA, which avoids a tax hike on an estimated 62 percent of tax filers in 2026. 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 percent bonus depreciation and domestic research and development (R&D) expensing.

To visualize the OBBBA tax changes, Tax Foundation has estimated the average change in taxes paid per individual taxpayer under the OBBBA relative to prior law across each state and county from 2026 through 2035. As such, the map below (LINK)  illustrates the considerable 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.

We estimate the OBBBA will reduce federal taxes on average for individual taxpayers in every state. 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.

(Hawaii average tax cut $3,030 for 2026.  Hawaii long-term jobs created 3,519.)

At the county level, the largest average tax cuts are found in mountain resort towns. For example, we estimate Teton County in Wyoming will see an average tax cut of $37,373 per taxpayer in 2026, the highest in the US. Pitkin County, CO ($21,363), and Summit County, UT ($14,537), rank number two and three for the largest average tax cuts, likely representing the residences of business owners and higher-earning taxpayers. The smallest average tax cuts are found in rural counties, such as Loup County, NE, with an average tax cut of $824 in 2026.

(SEE Hawaii County-Level Tax Cuts by Clicking on Map at bottom of webpage  >>> HERE <<<.)

Across all individual tax filers throughout the country, the average tax cut per taxpayer will be $3,752 in 2026. The average tax cut falls to $2,505 in 2030 as certain individual changes like deductions for tips and overtime income expire, before rising again up to $3,301 in 2035 as inflation increases the nominal value of the permanent tax cuts. 

Specific tax changes also exhibit geographic variation. For example, the $40,000 cap on state and local tax (SALT) deductions ($10,000 cap post-2029) will tend to have the greatest impact on taxpayers in higher-tax localities on the coasts of the US.

Tax Foundation estimates the OBBBA will create about 938,000 full-time equivalent jobs over the long run, ranging from more than 132,000 jobs in California and 81,000 jobs in Texas to about 1,700 new jobs in Vermont. The map below provides a state-level breakdown of the full-time equivalent jobs created from the OBBBA’s passage. …

read … OBBBA Average Tax Cuts by State & County Map | Tax Foundation