Here's your potential tax cut in 2026 from the One Big Beautiful Bill Act

Millions of taxpayers could see a lower tax bill next year due to the so-called "big, beautiful bill" that was signed into law on July 4 by President Trump, with a recent analysis finding that every income group will see some savings. 

On average, taxpayers will save about $2,900 per household in 2026, according to the analysis from the Tax Policy Center, a nonpartisan think tank focused on taxes. But higher-income Americans are more likely to see a bigger relative boost than lower-income households, their analysis found. 

The new law extends the tax cuts in President Trump's 2017 Tax Cuts and Jobs Act, with many of those provisions otherwise slated to expire at year-end. But the legislation also adds a bevy of new tax breaks, ranging from eliminating taxes on overtime and tips to lifting the state and local taxes deduction from $10,000 to $40,000.