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These 8 States Will See the Biggest Tax Cuts in 2027

The One Big Beautiful Bill Act brings significant cuts

By Chris Lewis, CEPF , Edited by Becca Borawski Jenkins

Updated Nov. 10, 2026

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If you want to crush your tax debt, you may be inspired by the One Big Beautiful Bill Act (OBBBA). It was signed into law in the summer of 2025 and makes the most significant legislative changes to federal tax policy since the 2017 Tax Cuts and Jobs Act.

Overall, the OBBBA makes permanent the individual tax changes first put in place by the 2017 Act, which helped an estimated 62% of taxpayers avoid a tax hike in 2026. It also provides additional tax cuts to individuals.

So what does that actually look like across the country? The Tax Foundation crunched the numbers to find out which states stand to benefit most in 2027.

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Wyoming

Based on estimates from the Tax Foundation, Wyoming taxpayers will see the largest average tax cut in 2027: $5,478. When you dig down deeper, Teton County in Wyoming will see an average tax cut of $39,316 per taxpayer in 2027. That's the highest in the country.

Overall, the largest cuts are found in mountain resort towns and likely represent the residences of business owners and higher-earning taxpayers.

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Washington

Taxpayers in Washington State are set to see the second-largest average tax cut in 2027 at $5,445. Another interesting aspect of the report is the estimate that the OBBBA will create about 828,000 full-time equivalent jobs over the long run, based on updated February 2026 estimates.

While a state like California will see more than 116,000 jobs, Washington is expected to do fairly well, too, with approximately 24,000 new jobs.

Massachusetts

The Bay State rounds out the top three states expected to see the largest average tax cuts in 2027 at $5,259. According to the Tax Foundation, specific tax changes also show variation by geographic location. For instance, the $40,000 cap on state and local tax deductions will likely have the greatest impact on taxpayers in higher-tax locations on the U.S. coasts.

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Florida

The state known for its sunshine ranks fourth for the biggest tax cuts in 2027. The average tax cut is expected to be $5,092. When you look at the entire state, some counties in the far south will see some of the biggest average tax cuts.

For example, the average tax cut in Palm Beach County will be more than $12,400. The $40,000 cap on state and local tax deductions likely has the greatest impact on taxpayers in higher-tax locations.

Connecticut

Another state in the eastern part of the country comes in fifth for the largest average tax cuts in 2027 at $4,832. This may be especially welcome news for taxpayers in the state, given that Connecticut's tax system is ranked 46th overall on the 2026 State Tax Competitiveness Index from the Tax Foundation.

New Hampshire

The average tax cut for New Hampshire taxpayers in 2027 will be $4,649. Based on the analysis, across all individual tax filers throughout the country, the average tax cut per taxpayer should be about $3,813 in 2027.

It falls to $2,590 in 2030 due to certain individual changes expiring, but then rises again in 2035 as inflation increases the nominal value of the permanent cuts.

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Colorado

For Colorado, the average tax cut in 2027 will be $4,344, ranking it among the top 10 states. At the county level, Pitkin County ranks among the top places for the largest average tax cuts.

The county will see an average tax cut of $22,717 per taxpayer in 2027. This falls in line with the overall trend of the largest cuts being found in mountain resort towns.

Nevada

If you live in Nevada and want extra money for entertainment, the state's major tax cut in 2027 is welcome news. The average tax cut here will be $4,301.

According to Tax Foundation estimates, the numbers are based on conventional national revenue estimates, then allocated to individual tax filers in counties using IRS data.

Bottom line

You may want to prepare yourself financially for tax cuts coming in 2027. The OBBBA means taxpayers will see cuts, with some filers living in certain states seeing an average tax cut above $5,000. The law provides new deductions for tipped and overtime income, along with an expanded child tax credit and standard deduction.

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