Alaska taxpayers to save an average of $3,485 under new federal tax law

By
Suzanne Downing
-
72

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.

Sullivan says no state fared better than Alaska with the One Big Beautiful Bill

72 COMMENTS

  1. 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!

  2. Tell me exactly how much a person making $75,000 a year is going to save? Whenever they use the “average” it is usually because the data is skewed. Rollo refers to communists, I challenge him to define it?

  4. Watch the leftists find a way to spin this as a bad thing. Leftists suffer from a severe case of stockholm syndrome. They are so brainwashed for everyone to pay excessive taxes that any cuts to taxes for the common man seems like an attack on their lover (government) abuser.

  5. The federal government runs an almost $2 Trillion deficit every year. The tax cuts are the result of borrowing even more money and forcing future generations to pay it back with interest.
    Unless the federal budget is balanced the tax cuts people receive are just loans that have to be paid back

  6. I’ve read a few articles complaining about how these tax cuts will not benefit everyone…since people who don’t pay taxes won’t benefit, seriously you can’t make that kind of stuff up. These articles can be found on left wing “news” sites and are an interesting peek into the views that our friends on the left have. Yeah people who don’t pay taxes don’t receive tax cuts, somehow many on the left cannot fathom why.

      • No, you get to retain the tax cuts you have been enjoying since President Trump passed his tax reform acts during his first term.
        Examine what your taxes would be had those cuts expired, then come back here and complain.

      • If you want a tax cut so bad then get a job that offers overtime or pays tips. Some people are never happy unless they are complaining.

      • The prior cuts become permanent, social security recipients recieve a cut on their earned benefits. You only see what you choose to see. Are you actually advocating for higher taxes? If so, you are one of…. one?

        • Not all social security recipients receive a cut, only $6,000 for single filers or $12,000 for married filing joint couples.

          And to receive the maximum, you need to have income under $75,000 for single or $150,000 for MFJ. And if you have income over $175,000 for single filers or $250,000 for MFJ, you lose out on it all together. You pay tax on 85% of your social security income

      • Under the Big Beautiful Bill unless you work overtime, or a tipped job you don’t get an ADDITIONAL tax cut either.
        There fixed it for you.
        I still am not sure what you are complaining about.

  9. Taxation is theft bordering on slavery. Don’t believe me? Try not paying your income or property taxes, on the property you bought with after tax dollars.

    • Typical response from someone who wants free services, police, fire, roads, etc all cost money. If you don’t want to pay for those services buy land in bush where they are not available. Simple solution to your problem.

      • Typical slave master response from Alaskans for freedom. “If you don’t like being a slave, trying escaping, if you can…”

        Democrats do nothing but control and destroy. While Trump is busy non-stop building, all a worthless Democrat can do is take take take.

          • Manny,

            You are responsible for regulating your own emotions. To give me such power over how you express in this world only reveals that your character is not very strong. This must be why you vote D.

            But I am not completely heartless, I feel for you. You will never have control over anything in life, if you cannot be strong enough to read text without emotional outburst. That is sad for you. You will continue to live a very sad existence until the point you learn to swim deeper from the shallow end of the pool of consciousness you wade in.

            Seek truth, and look beyond the narrative you are so helplessly attached to.

            You could be so much more than a loser who votes D.

      • Roads, police, firefighting are all items that are impossible to pay for without providing a public benefit.
        If that was everything my tax dollars went to, I would never complain in any way.
        .
        But, here we are, seeing billions wasted on things that are not a public service. And, I am supposed to think this is OK?

          • I do vote.
            And… your point is? As soon as a candidate takes the oath of office, they throw away each and every campaign promise they made, and pick up the card for their new political party, the Reeleciton party.
            .
            Which means they will continue wasteful spending on things that are not the responsibility of the government in order to stay in office. Surely you knew this?

  10. The article states that “legislation also delivers targeted relief by eliminating federal taxes on tips, overtime, and Social Security income.” The way I understand it is that there are still taxes on social security, but seniors are given an additional $6k ($12K per husband and wife) tax exemption. They have not completely done away with taxes on social security income.

    • “ but seniors are given an additional ***** tax exemption”. What does that mean?. Aren’t the vast majority of social security recipients “ seniors? Who are the people who are not seniors that receive SS benefits. Can’t be very many, huh?

      • Let’s see, according to ssa.gov in July of 2025 there were a total of 74,360,000 beneficiaries. Of these 55,123,000 received social security, 1,075,000 received supplemental security income (ssi) and 2,535,000 received both.
        11,207,000 are under 65 receiving disability payments and 5,543,000 others (early retirees or survivors) who have not met the age or are disabled. So there are 16,750,000 individuals, who are not seniors.

  12. The savings on taxes will be obliterated by the increased cost of groceries. Along with the Ukraine Russian war, the grocery prices were promised to be lowered immediately after your favorite “businessman” took office. We’re waiting Donald. When times were tough you used to go from steak to hamburger. Forget about that approach. #Newsom.

    • “The savings on taxes will be obliterated by the increased cost of groceries.”
      .
      Good.
      Now, do the same analysis on increasing the minimum wage.

      • I never saw the 40% increase in the cost of beef when the minimum wage went up–and that’s at the wholesale price. NY strips have gone from about $11.99/pound to $16.99 per pound at Costco. And a ribeye at Club Paris now runs about $50. Further, tariffs (an import tax paid by the purchaser) don’t put more money in the hands of people who consume (i.e., your server at the Lucky Wishbone gets a raise and then spends their new found funds in Anchorage, generating additional economic activity).

        • Really?
          Beef prices? That is your example?
          .
          Tell me, painful… what goes into setting the cost of beef? Is it just labor?
          How many years does cattle have to live and graze before it can be profitably harvested? Where does it do that? Does weather play a factor? Wildfires? Disease?
          .
          Do you know why the CPI encompasses a large number of consumer products, and not just one category? I bet you do, but that would destroy your logic, so you likely ignore it.
          .
          “your server at the Lucky Wishbone gets a raise and then spends their new found funds in Anchorage, generating additional economic activity”
          The Lucky Wishbone has to raise their prices to pay the server, dishwasher, hostess, janitor, cook, etc… etc… etc… dampening additional economic activity. And, if the owner of the Lucky Wishbone sees profits reduced too much, they will lay off the minimum wage earner instead of increasing their wage, or not hire that additional worker.
          Thereby dampening Anchorage economic activity further.

      • The savings on taxes will not be affected by any changes to the minimum wage. How’s that CBMTTek? What will change is some people won’t have to work 3 jobs to share an efficiency with 4 other citizens.

            • What does Cracker Barrel have to do with this in any way?
              .
              And, please, if you cannot answer the question, do not bother responding. I can only assume you realized how ridiculous your statement because it destroys your support for increasing the minimum wage.

      • Not a good example. The poultry industry is recovering from the chaos caused when the Biden administration required whole farms of chickens destroyed because of the threat of avian flu. (note I used the word threat, some of the farmers were required to destroy their chickens even though none of them tested positive)

        • Sorry CBMTTek,
          Sebastian for many moons went on complaining about egg prices. Now that they are down, he changed it up to still make his TDS work.
          I get that there are many factors going into pricing and it isn’t cut and dry.

          Raising the minimum wage by government, in my opinion slows down economic growth, as it artificially ties up capital, which would otherwise be invested in expansion and creation of more employment.
          It furthermore removed the incentive for workers to improve their standing by acquiring more on the job training/skills or returning to school in order to qualify and get hired in better enumerated employment. Minimum wage jobs are entry level jobs and should never be considered a career.

          • Sebastian has been a thorn in the side of anyone with half a functioning brain cell ever since he first graced the pages of MRAK.
            .
            I am not saying you were wrong, but I am pointing out that Sebastian is likely to use my response to Painful Truth against you.
            .
            Have a day!

            • CBM, see my comment farther down on the first rule of MAGA club. You are never to mention the prices of groceries again as long as a Republican is in office. You need to focus on crime in blue states only. Ignore Nashville’s extreme crime rate and focus only on blue states. Ignore St. Louis and New Orleans. Don’t bring up they are eating the dogs and cats anymore. That was all theatrics.

    • Grocery prices fell in April for the first time this year, marking the largest monthly decline since September 2020.

      Five of the six major grocery store group indexes dropped, led by a 12.7% decrease in egg prices, the U.S. Bureau of Labor Statistics reported Tuesday. The index for meats, poultry, fish, and eggs declined 1.6% in April after recent increases. Nonalcoholic beverages was the only category that saw an increase, rising 0.7%.

      The cereals and bakery products index dropped 0.5% in April, while fruits and vegetables and other food at home fell 0.4% and 0.1%, respectively.

      The Consumer Price Index for All Urban Consumers rose 0.2% in April on a seasonally adjusted basis after falling 0.1% in March. The index for food, which includes food away from home (restaurants), was up slightly at 0.1%

      From May of this year. Notably the prices went up under Autopen control.

  13. It’s not just grocery costs that will dent the tax savings; it’s the increases to almost everything we buy thanks to tariffs. Basically, income tax is replaced with what I can best describe as a sales tax. The 38% rise in fruit and vegetable WHOLESALE prices is only a small beginning. By the end of this year it looks like any income tax reductions will be completely obliterated, unless you don’t need to purchase anything anymore. This sleight-of-hand trick by our President won’t remain unnoticed.

    • The first rule of “MAGA club” is you don’t talk about grocery prices now that Trump is in office. Last summer you were expected to mention the high prices to everyone you met. Followed by “thanks Biden”! Those stickers of Trump saying “I did that” are starting to get annoying down at Walmart.

    • About 10-13% of our gdp is made up of imports, some these imports now have various levels of tariffs placed upon them. If you want to pay tariffs that is your choice as an American, you can easily avoid paying these tariffs because somewhere around 87-90% of the goods and services available are tariff free. If you choose to pay for a tariff you are not paying a sales tax since the importer pays that, if the importer chooses to pass that cost along to you and you agree to pay that additional cost you have made an informed decision of where to spend your purchasing power. Ain’t America great!!

    • Jon, I get that economics are hard and complicated. If you do not wish to pay the cost increase importers add on to their goods, because of tariffs (which will be paid into the treasury to let us borrow less), BUY local and US made products. The whole point of tariffs is to give our domestic industry the opportunity to compete and expand oh and create more jobs. If you still prefer products that are imported, please see Steve-O’s comment above.

  14. The US national debt will never be repaid. What I really think is that, tax cuts are just way to deal with inflation. The globalists, One Worlders or members of secret societies gotta keep the masses in check. And it’s the interest on the national debt that cannot go unpaid. Unless Rand Paul wins in 28 and if Congress goes along with him then this World Government will just keep coming. The rise of China has been a success. Time for war now. We’re just human cattle to the One Worlders. I don’t know if I should say more. According to Carr, uh Russia and China are gonna try to destroy the international bankers of the “western” nations. Because they know, in the end, they require or want only one government, and that they intend to control it. But I’m not a prophet and I don’t claim to be one. So, we’ll just have to wait and see how end times unfold.

  15. Old CBM yells at his screen,
    All angry and bitter and mean.
    His life slips away,
    While he types night and day,
    And nothing beyond that is seen.

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