President Trump's controversial tax plan, commonly known as the One Big Beautiful Bill (OBBBA), contains a series of significant tax cuts for individuals. While the average savings per individual in 2026 across the entire United States is $3,752, some states will see an even bigger cut than that. The reductions offer a great way to get out of tax debt, particularly if you're able to reduce your overall tax burden.
Additionally, high-tax states will see some of the biggest savings due to the increased $40,000 cap on state and local tax (SALT) deductions, but you'll be surprised at the state that has the most significant average tax reduction.
Using data from the Tax Foundation, which estimated the average change in taxes paid per individual over the next 10 years relative to previous tax laws in each state, we identified the top 15 states that could see the most tax savings under the OBBBA in 2026.
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Illinois
Average tax cut per taxpayer: $3,720
In Illinois, the expected annual savings for 2026 are right in line with the national average, coming in just below $3,752. For lower- to medium-income earners, this could be as impactful as a month's worth of groceries.
Utah
Average tax cut per taxpayer: $3,742
Right near the national average for tax savings, Utah benefits from the high federal standard deduction and its flat income tax. Summit County will save especially big, with the Tax Foundation estimating an average tax cut of $14,537.
Tennessee
Average tax cut per taxpayer: $3,785
As a state with no income tax, most of the relief Tennessee residents see could be due to the large federal tax cuts and the exemption from tax on tips. Additionally, the SALT provision expiring in 2030 will not have as big of an impact, unlike it will for residents of wealthier states.
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New York
Average tax cut per taxpayer: $3,933
Given its high property taxes and cost of living, New York residents will greatly benefit from the SALT cap increase, particularly in New York City and adjacent suburbs. But that also means that the overall benefits of the tax cuts will sharply end when the SALT provision expires in 2030.
By 2035, the Tax Foundation estimated that residents of New York State will see an average tax cut of $2,671 per taxpayer.
Texas
Average tax cut per taxpayer: $3,942
Certain cities in Texas will see more relief than others. Dallas County, for example, is projected to see an average of $5,398 in tax cuts in 2026.
California
Average tax cut per taxpayer: $4,141
With a high state income tax, booming housing prices, and steep property tax bills, Californians will benefit from the $40,000 SALT expansion, though high-income areas skew the average. The SALT snapback after 2029 will significantly reduce the savings, though.
Nevada
Average tax cut per taxpayer: $4,220
Nevada has no state income tax, and at approximately 13% above the national average for tax savings, Nevada workers in the bustling hospitality industry could gain significantly during the temporary tax-free window on tips.
Additionally, it's estimated that residents of Nevada will see an average cut of $3,738 by 2035.
Colorado
Average tax cut per taxpayer: $4,260
There's a significant disparity between resort towns and rural communities, with the Tax Foundation noting that the largest average tax cuts are found in mountain resort towns. This means a disproportionately large impact on places like Boulder and Vail.
Pitkin County, for example, will see an average cut of $21,362 per taxpayer.
New Hampshire
Average tax cut per taxpayer: $4,597
New Hampshire often sees high property values and thus high property taxes, making the SALT provisions particularly beneficial. Still, once those benefits expire, there is a slight return to the norm, although the overall savings for wealthy individuals will remain high.
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Connecticut
Average tax cut per taxpayer: $4,683
Homeowners in the affluent suburbs get the biggest gains from the SALT deductions, as they often pay significantly more than $10,000 in SALT every year. This drives up the state's average.
At approximately 25% above the national average, the new tax cuts have a significant impact. By 2035, the expected cut per taxpayer is $3,423.
Washington D.C.
Average tax cut per taxpayer: $4,922
The Tax Foundation estimates that in 2026, taxpayers will save almost $5,000 on average, which is over $1,000 more than in neighboring states Virginia and Maryland.
Florida
Average tax cut per taxpayer: $4,998
A combination of no state income tax, a large base of retirees, and a massive amount of service and hospitality workers likely makes the OBBBA have a substantial impact in Florida. By 2035, Floridians will still see an average cut of $4,051.
Massachusetts
Average tax cut per taxpayer: $5,138
A combination of high state income taxes and high property taxes drives up the average savings to a whopping 37% above the national average, likely in part due to the SALT provisions. The biggest impact in 2026 will be felt in Middlesex County, where the average savings per taxpayer is an estimated $7,085.
Washington
Average tax cut per taxpayer: $5,373
Washington residents will save 43% more than the national average. High earners and property taxes make the SALT deductions more impactful, especially in high-cost areas like Seattle. King County, for example, is expected to see an average cut of $9,244 per taxpayer.
Wyoming
Average tax cut per taxpayer: $5,374
Wyoming is the top state for tax savings with the passage of the OBBBA. Part of this is due to the resort/rural divide, with travel hotspots like Teton County getting the largest savings. According to the Tax Foundation, Teton County will see the highest cuts in the entire nation ($37,372).
Areas like these also face high property values, so the SALT deductions make a big impact here as well.
Bottom line
If you want to keep more cash in your wallet, these 15 states are the best places to do so. You'll be saving at least the national average in annual taxes in 2026, and with these tax cuts now permanently part of federal law, you can expect the OBBBA's main provisions to be around for quite some time.
There's still a stark difference on a county level, with savings in Teton County, Wyoming, expected to be $37,373 per taxpayer in 2026, the highest in the country. So, choose where you live carefully, because it will have a big impact on your yearly tax burden.
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