The Trump-era legislation, the Tax Cuts and Jobs Act of 2017, brought sweeping changes to the tax landscape.
This included lowering income tax rates for individuals, nearly doubling the standard deduction and increasing the federal estate tax exemption.
But these cuts expire at the end of 2025, leaving most Americans with a higher tax bill.
According to authorities, residents of some states will be hit harder than others. analysis by the independent think tank Tax Foundation.
Lawmakers from both parties say they want to prevent the tariffs from increasing. Donald Trump wants to extend the expiring cuts, while Democrats want to keep the cuts for households making less than $400,000 a year.
Trump-era legislation, introduced in 2017 by the Tax Cuts and Jobs Act, brought about sweeping changes to the tax landscape
According to the Tax Foundation, Massachusetts taxpayers will see the largest increase in their tax bill in 2026 as the tax cuts expire and corporate taxes rise as scheduled — with an average increase of $4,682 per year.
People living in Washington will see their bill increase by an average of $4,429, while an increase of $4,312 is common for taxpayers in Wyoming.
In Washington, DC, the average taxpayer will pay $3,746 more per year if the legislation passes as planned.
According to the think tank, the average taxpayer across the country would see a $2,853 increase if the tax breaks were to expire all at once.
The Tax Foundation also calculated the typical change in taxes paid per taxpayer in each U.S. congressional district.
For example, the constituency surrounding San Francisco was found to face an average tax increase of $16,127 per taxpayer, the highest in the U.S.
Its expiration would raise taxes even more for higher-income households, potentially distorting the average in some places. The Wall Street Journal reported.
When former President Donald Trump introduced the provisions in 2017, the change in the amount of tax a household paid depended on income, family composition and location.
The biggest winners included the highest-income earners in states without income taxes, the magazine said.
In contrast, residents of high-tax states such as New York and New Jersey saw their tax liability decrease.
If the tax cuts were to expire, many of those effects would be reversed.
Many states that don’t have income taxes, including Wyoming, Nevada and Florida, are among the top 10 states that will see the highest average increases if the cuts expire.
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The Trump-era tax cuts expire at the end of 2025, and most Americans will see their bills rise as a result
According to the Tax Foundation, Massachusetts taxpayers will see the largest increase in their bills in 2026 when the cuts expire — with an average increase of $4,682 per year (Pictured: Boston waterfront)
The Wall Street Journal reports that the law is unlikely to expire in its entirety, but the question of how to address the legislation is likely to become a tough, billion-dollar negotiation in 2025.
The Tax Foundation estimates that extending the provisions for individuals and businesses (excluding changes to the estate tax) would cost about $3.8 trillion over the 10-year budget period, from 2025 through 2034.
In addition to extending all of the provisions, Trump has also proposed eliminating taxes on tips and Social Security benefits and cutting the corporate tax rate from 21 percent to 15 percent.
Vice President Kamala Harris has also proposed eliminating the tip tax, expanding the child tax credit and keeping cuts in place for people earning up to $400,000 a year.