Nearly every person who filed taxes this year received a tax cut, coming to a whopping $82 billion in relief, according to the Treasury Department.
Data released Tuesday showed 97% of filers scored a cut, courtesy of the One Big Beautiful Bill Act passed last year.
Without the new law, those taxpayers would have been hit with a $5 trillion tax hike from the expiration of Trump’s landmark 2017 law that slashed payments to the IRS, according to Treasury.
Treasury Secretary Scott Bessent sounded a triumphant note on the outcome.
“Under President Trump, our federal tax code and system reflect the American people’s mandate to reject policies that punish success with tax hikes and embrace those that restore fairness, reward work, respect hard-earned paychecks, and reignite the American Dream,” he said in a statement.
Treasury officials said filers making $100,000 to $200,000 who tapped the new breaks pocketed an average cut topping $1,250, while those with incomes between $50,000 and $100,000 grabbed more than $815 on average.
More than 7.5 million workers claiming the no-tax-on-tips break, a key promise from Trump’s 2024 campaign, wiped an average of $7,000 off their taxable income.
Over 29 million filers deducted no-tax-on-overtime pay, trimming an average of $3,100 from their bills. Three-quarters earned under $100,000. Ninety-six percent made below $200,000.
The doubled standard deduction simplified life for 127 million filers, equivalent to 90% of all returns filed, but Treasury officials believe the relief will swell further as stragglers with extensions file.
The data arrives as Americans feel the first full impact of the sweeping tax overhaul Republicans rammed through Congress last year. The legislation includes bigger breaks for seniors and families, incentives to buy American-made wheels and set up Trump Accounts.
The simple savings plans created by Trump’s new tax law aim to help families put away money for their kids’ futures.
Treasury said Tuesday that more than 5.5 million Trump Accounts have been opened, with 1.4 million kids eligible for pilot $1,000 contributions. Eighty-six percent are tied to families earning less than $200,000.
The One Big Beautiful Bill Act is a massive domestic policy package crammed with Trump’s second-term priorities.
The House and Senate passed the bill in July, with every Democrat and two Republicans opposed to it.
Senate Majority Leader John Thune, a South Dakota Republican, steered it through the upper chamber on July 1, with Trump signing it into law on July 4.
“Our modeling indicates the One Big Beautiful Bill Act will boost economic growth but increase deficits,” the non-partisan Tax Foundation think tank said in its January analysis.
The group attributed the growth effects to lower marginal tax rates on work, saving and investment, along with permanent, 100% bonus depreciation and research and development expensing.
It estimated that the legislation, often called OBBBA, will increase GDP by 1.2% in 2026, 1.4% in 2027, and 1.5% in 2028 before settling at a 1.2% long-run gain.
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