Trump’s “Big, beautiful bill” brings big tax cuts — But not to everyone
President Donald Trump’s tax plan, officially the Big and Beautiful Bill (OBBBA), has been in the news since he signed it into law on July 4. And now we know how this sweeping package will affect Americans’ wallets in 2026 — and the implications are rather different depending on where you live.
The Tax Foundation, a nonpartisan Washington think tank, has run the numbers and what the typical taxpayer can look forward to is a $3,752 tax reduction in 2026. But in certain affluent counties, that figure jumps to stratospheric levels — with one exceeding $37,000 per taxpayer.
Average tax cuts: $3,752 in 2026
Trump’s tax cuts appear generous on the surface. On average, the study estimates a decline of $3,752 per taxpayer in 2026. The silver lining has an expiration date, however. By 2030, the cut will fall to $2,505 as some provisions expire, before increasing again to $3,301 in 2035 when others phase in.
Tax cuts typically do this by reducing the rate at which you pay taxes on income, so you pay the government a smaller percentage of your income you do pay taxes on. Congress and state legislatures have done it time and again over the decades — but the OBBBA’s effect is unusually skewed.
Where are tax cuts the biggest?
All states do not benefit equally under the new scheme. According to the Tax Foundation report, these are the three states with the largest average tax cuts in 2026:
- Wyoming: $5,375
- Washington: $5,372
- Massachusetts: $5,139
West Virginia ($2,503) and Mississippi ($2,401) come last, showing the manner in which levels of income and systems of local taxation influence the size of these reductions.
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Mountain towns see sky-high breaks
If you’re wondering where the tax cuts truly go off the charts, look no further than some of America’s wealthiest resort areas. The study found that Teton County, Wyoming, will see a jaw-dropping $37,373 average tax cut per taxpayer in 2026 — ten times the national average.
Other high-flyer counties include:
- Pitkin County, Colorado: $21,363 per taxpayer
- Summit County, Utah: $14,537 per taxpayer
These dramatic drops reflect the existence of high-income households, business proprietors, and more affluent property owners, who already contribute more in taxes — and therefore save more when rates fall.
On the other hand, Loup County, Neb., will see the lowest average tax reduction of just $824 per taxpayer, pointing to how rural and poorer communities benefit less from broad tax cuts.
Why the disparate impact?
Tax authorities clarify that more affluent counties will necessarily gain more benefit from income tax cuts because the residents make — and pay — much more. Less affluent districts receive lower dollar amounts, but their percentage cut may be the same.
This difference has been the subject of controversy as to whether the OBBBA disproportionately benefits the affluent. Although the White House has praised the Tax Foundation study, others point out that most rural areas may not experience much relief.
What it means for You
If you’re an average taxpayer, a $3,752 cut in 2026 is nothing to sneeze at — but it’s not life-changing either. For residents of Teton County or other wealthy enclaves, however, Trump’s “big, beautiful bill” delivers a windfall that could pay for a luxury vacation, a new car, or even a chunk of a mortgage.
As the U.S. heads into election season, the political battle over these tax cuts is guaranteed to heat up. Depending on whether or not voters see the OBBBA as a middle-class tax credit or a hand-out to the wealthy will likely depend on ZIP code — and income level.
