Miami-Dade, Broward residents see $5K tax cut in 2026
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The average South Florida resident will see a federal tax cut of about $5,100 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 not only made the 2017 tax cuts permanent, it added on 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 Miami-Dade, the average tax break is expected to be $5,872 next year.
- In Broward County, it's $4,441.
Zoom out: In Florida, the average tax cut will be about $5,000, per the Tax Foundation analysis.
- Collier County residents will see some of the largest average tax cuts in the state ($14,315), while taxpayers in Gadsden County will see the smallest ($1,714).
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.
- But business owners will get some of the biggest cuts — thanks, in part, to tax breaks being made permanent for research and development expenses and other provisions.
Reality check: The big bill also made some steep cuts to social spending on food benefits and Medicaid, but those don't mostly don't kick in until 2027 and 2028. For many lower-income Americans, those cuts will outweigh any benefits of these tax breaks.
Go deeper: How other U.S. residents' payouts compare