If you’re looking to crush your
tax debt, you may feel inspired by the One Big Beautiful Bill Act (OBBBA).
It was signed into law this summer 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 avoids a tax hike on an estimated 62% of taxpayers 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 2026.

Based on estimations from the Tax Foundation, taxpayers in Wyoming will see the
largest average tax cut in 2026 at $5,375. When you dig down deeper, Teton
County in Wyoming will see an average tax cut of $37,373 per taxpayer in 2026.
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.

Taxpayers in the state of Washington are set to see the second-largest average
tax cut in 2026 at $5,372. Another interesting aspect of the report is the
estimation that the OBBBA will create about 938,000 full-time equivalent jobs
over the long run.

While a state like California will see more than 132,000 jobs, Washington is
expected to do fairly well, too, with approximately 27,458 new jobs.

The Bay State rounds out the top three states expected to see the largest
average tax cuts in 2026 at $5,139. 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 living in higher-tax locations on the coasts of the U.S.

The state known for its sunshine comes in fourth when it comes to the biggest
tax cuts in 2026. Falling just short of $5,000, the average tax cut is expected
to be $4,998. 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 $12,000.
The $40,000 cap on state and local tax deductions likely has the greatest impact
on taxpayers in higher-tax locations.

Another state in the eastern part of the country comes in fifth for the largest
average tax cuts in 2026 at $4,683. This may be especially welcome news for
taxpayers in the state, given that Connecticut’s tax system is ranked 47th
overall on the 2025 State Tax Competitiveness Index from the Tax Foundation.

The average tax cut in 2026 for taxpayers in New Hampshire will be $4,597. Based
on the analysis, across all individual tax filers throughout the country, the
average tax cut per taxpayer should be about $3,752 in 2026.

It falls to $2,505 in 2030 due to certain individual changes expiring, but then
rises again in 2035 as inflation increases the nominal value of the permanent
cuts.

For Colorado, the average tax cut in 2026 will be $4,260, ranking it among the
top 10 states. When looking at the county level, Pitkin County in Colorado ranks
among the top places for the largest average tax cuts.

The county will see an average tax cut of $21,363 per taxpayer in 2026. This
falls in line with the overall trend of the largest cuts being found in mountain
resort towns.

If you live in Nevada and want to have some extra money for entertainment, then
the fact that the state will see one of the biggest tax cuts in 2026 is welcome
news. The average tax cut here will be $4,220.

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

You may want to prepare
yourself financially for tax cuts coming in 2026. 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.