News & Trending Tax News

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

Add Us On Google

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.

Set up eligible direct deposit - pocket up to $400

Set up an eligible direct deposit with SoFi Checking and Savings and you could earn a bonus of $50 or $400.¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 0.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 9/23/26. Fees may reduce earnings. Additional information can be found at <a href="https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SoFi-Bank-Rate-Sheet-September-23-2026.pdf">http://www.sofi.com/legal/banking-rate-sheet</a>. Make the switch, set up eligible direct deposit, earn the bonus. It basically takes no extra work at all other than following these steps.

Why people are switching: This account earns up to an insane 4.40% APY² Earn up to 4.40% Annual Percentage Yield (APY) on one SoFi Savings account with a 1.10% APY Boost (added to the 3.30% APY as of 10/20/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/27. Rates are variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#4">sofi.com/banking#4</a>. SoFi Bank, N.A. Member FDIC. on savings for up to six months (3.30% APY standard + 1.10% APY boost) on top of that $50 or $400 bonus.¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 0.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 9/23/26. Fees may reduce earnings. Additional information can be found at <a href="https://d32ijn7u0aqfv4.cloudfront.net/wp/wp-content/uploads/raw/SoFi-Bank-Rate-Sheet-September-23-2026.pdf">http://www.sofi.com/legal/banking-rate-sheet</a>. That's way better than the measly 0.38% APY (as of 10/19/26)³ Based on <a href="https://www.fdic.gov/national-rates-and-rate-caps">this</a> FDIC data, as of 6/15/26. national average savings accounts offer.

No monthly fees and no surprises. Open your account and earn up to a $400 bonus

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.

Shopping for cheaper auto insurance? Enter your zip code here to get started.

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.

Resolve $10,000 or more of your debt

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.⁴ Please note that all calls with the company may be recorded or monitored for quality assurance and training purposes. Clients who are able to stay with the program and get all their debt settled realize approximate savings of 45% before fees, or 20% including our fees, over 24 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating. "Debt-Free" applies only to enrolled credit cards, personal loans, and medical bills. Not mortgages, car loans, or other debts. Results vary.

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.

Make Money: 8 things to do if you're barely scraping by financially

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.

More from FinanceBuzz:

Intro APR on purchases and balance transfers
$0 annual fee
Apply Now

Get a 0% intro APR for 15 months on purchases and balance transfers; balance transfer fee applies. Then 18.74% - 28.74% Standard Variable Purchase APR applies, based on credit worthiness
INTRO OFFER: Receive a $200 statement credit when you spend $500 on purchases in your first 3 months of account opening
UNLIMITED CASHBACK MATCH: Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300. Click "Apply Now" to view important rates and disclosures
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases
Redeem cash back for any amount. No annual fee
Terms and conditions apply

4.7

Apply Now

on Issuer's secure website

Read Card Review

Intro Offer

INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Plus, get a $200 statement credit when you spend $500 in the first 3 months after account opening.

Annual Fee

Why we like it