President Donald Trump’s sweeping tax and spending law, which he dubbed “One Big, Beautiful Bill,” is expected to cut thousands of dollars of taxes for some tax filers – especially those in high income counties. But rural residents will see a much smaller fraction of tax cuts, a new analysis found.
The bill makes permanent the 2017 tax cuts from Trump’s first term. It reduces some taxes, but raises others, and changes spending amounts.
The bill will avoid a tax increase on an estimated 62% of tax filers in 2026, according to the Tax Foundation, a nonpartisan research organization.
The Tax Foundation estimates that the average American taxpayer will receive a federal tax cut of $3,752 in 2026 as a result of the “big, beautiful bill.”
Here’s what you need to know about anticipated tax cuts next year:
Which states will have the largest tax cuts?
Individual taxpayers in every state will experience a reduction in average federal taxes, the foundation said.
Taxpayers in Wyoming will see the largest average tax cuts next year, at $5,375 per filer. Washington state follows with an average tax cut of $5,372 per filer in 2026.
Taxpayers in West Virginia will see the smallest average tax cuts next year, at $2,503 per filer. Mississippi follows with an average tax cut of $2,401.
One Big Beautiful Bill: The winners (and losers) in Trump’s ‘big beautiful’ tax bill—now law
Which US counties will experience the largest tax cuts?
At the county level, the largest average tax cuts are found in mountain resort towns, Tax Foundation reported.
Teton County in Wyoming, regarded as the nation’s wealthiest, will experience an average tax cut of $37,373 per taxpayer in 2026, the highest of any U.S. county. Taxpayers in Pitkin County, Colorado will experience an average reduction of $21,363 per filer next year, followed by Summit County, Utah with average tax cut of $14,537 per filer. The large tax cuts likely represent residences of business owners and higher-earning taxpayers, the foundation said.
Rural counties, such as Loup County, Nebraska are expected to have the smallest average tax cuts next year, at $824 per filer.
Tax deductions in the One Big Beautiful Bill
The “One Big Beautiful Bill” provides additional tax cuts to individuals and businesses, as well as makes Trump’s tax cuts from 2017 permanent.
There will be no tax on tips and overtime income, as well as an expanded child tax credit and a $6,000 bonus deduction for seniors. Other tax changes include charitable contributions deductions, auto loan interest deduction for certain new vehicles and increased deductions and credits for families.
To learn more about what’s inside the Big Beautiful Bill read the ‘Big Beautiful Bill’ summary from USA TODAY.
CONTRIBUTING: Medora Lee, Paul Davidson, USA TODAY
This article originally appeared on USA TODAY: Maps show states, counties with largest average tax cuts in 2026
