New Yorkers are set to receive major tax relief under President Donald Trump’s newly signed tax and spending law, with residents projected to save an average of $3,935 in 2026. The figures come from a new analysis by the Washington-based Tax Foundation, which estimates broad benefits for households and job creation across the state.
The report shows that while average savings will dip slightly in later years, New York taxpayers will still see thousands in reductions through 2029. In New York County, which includes Manhattan, the average taxpayer will receive a cut of $10,560 in 2026 — the largest in the state. Long-term, the law is expected to generate more than 66,000 new jobs in New York.
Nationally, the average tax cut for Americans in 2026 will be $3,752. The Tax Foundation projects nearly one million new jobs across the country as a result of the law’s provisions.
President Trump signed the legislation, dubbed the “One Big Beautiful Bill,” on July 4 after securing approval from both chambers of Congress. The package expands child tax credits, raises the cap on state and local tax (SALT) deductions to $40,000 for households making under $500,000, and reduces taxes on tips, overtime pay, and Social Security payments. It also boosts funding for the military and border security, while phasing in reductions to Medicaid, food stamps, and other safety-net programs.
The Congressional Budget Office estimates the law will add $2.4 trillion to the national debt over the next decade. Still, the Tax Foundation described the measure as “the most significant legislative changes to federal tax policy since the 2017 Tax Cuts and Jobs Act,” also signed by President Trump during his first term.
White House deputy press secretary Anna Kelly praised the analysis, saying, “President Trump’s One Big Beautiful Bill is the largest, most consequential tax cut on the middle class ever. Now, the Tax Foundation — the leading nonpartisan tax policy nonprofit — confirms that. Between lower inflation, massive investments, and historic tax cuts, all Americans are reaping the benefits of the Trump Economy — and the Golden Age has just begun.”
