See how Trump's Big Beautiful Bill tax cuts will impact Texans
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The average Texas resident will see a federal tax cut of about $3,942 in 2026 thanks to the "big, beautiful bill," according to an analysis from the Tax Foundation, a nonpartisan research group that mostly supports lower taxes.
Why it matters: That's money people can spend on rent, groceries or bills, which may be needed next year as inflation outpaces wages, and tariffs threaten to increase costs even further.
How it works: The spending bill made the 2017 tax cuts permanent and added new breaks: deductions for tips and overtime income, a cut for seniors and an expanded child-care tax cut.
- These are temporary provisions.
Zoom in: In Dallas County, the average tax break is expected to be $5,398 next year — the highest in North Texas.
- In Collin County, it's $5,169. It's $4,716 in Denton County and $3,751 in Tarrant County.
- Yes, but: The average tax break declines every year through 2030.
Between the lines: There are broad geographic differences in tax benefits from the spending bill due to variations in state and local taxes, plus areas where more high-earners live, Axios' Emily Peck and Jason Lalljee report.
- For example, Travis County residents will see some of the largest average tax cuts in the state ($8,342), while taxpayers in the border counties of Zapata and Starr will see the smallest (just over $1,000).
Reality check: The big bill also made some steep cuts to social spending on food benefits and Medicaid, but those mostly don't kick in until 2027 and 2028. For many lower-income Americans, those cuts will outweigh any benefits of these tax breaks.