Alaska taxpayers will see significant relief under the One Big Beautiful Bill Act, with average savings of $3,485 thanks in part to the Alaska delegation’s support for working-family tax cuts, according to a new analysis from the Tax Foundation.
All three members of Alaska’s congressional delegation — Congressman Nick Begich and Senators Dan Sullivan and Lisa Murkowski — voted for the OBBBA.
Signed into law in July, the bill represents the most sweeping federal tax reform since the 2017 Tax Cuts and Jobs Act. The law locks in individual tax provisions from the TCJA that were set to expire in 2026, avoiding a tax hike on an estimated 62 percent of U.S. tax filers.
Beyond extending the TCJA provisions, the OBBBA introduces new benefits aimed at both families and businesses. They include an expanded child tax credit, higher standard deduction, and new deductions for tipped and overtime income. Businesses benefit from permanent 100 percent bonus depreciation and continued deductions for domestic research and development. The legislation also delivers targeted relief by eliminating federal taxes on tips, overtime, and Social Security income.
According to the Tax Foundation’s estimates, Alaskans will save an average of $3,485 on their federal taxes in 2026, compared with what they would have paid under prior law. Nationally, the average savings per taxpayer comes to $3,752.
The impact varies widely across states. Wyoming ($5,375), Washington ($5,372), and Massachusetts ($5,139) lead with the largest average tax cuts, while West Virginia ($2,503) and Mississippi ($2,401) see the smallest. Within individual counties, the largest benefits are concentrated in high-income resort areas, with Wyoming’s Teton County averaging $37,373 in tax cuts per filer.
The Tax Foundation projects that the OBBBA will generate long-term economic growth by creating nearly 938,000 full-time equivalent jobs nationwide. California is expected to see more than 132,000 of those jobs, while Texas may gain about 81,000. Alaska’s share of new employment has not yet been detailed but is expected to track with national trends.
Although some provisions, such as deductions for tips and overtime income, are set to expire by 2030, overall tax savings will remain significant in the years ahead. By 2035, the average tax cut per filer nationwide is projected to reach $3,301, as inflation increases the value of permanent provisions.
I voted for this. This is not cutting taxes for billionaires, as the communist circus clowns will say – and are saying. Any time you can let a citizen keep their hard-earned money, it is a win. More of this please. More of THIS!