(The Center Square) — New York residents will get an average tax break of $3,935 next year under President Donald Trump’s newly minted tax and spending law, according to a new report.
The Tax Foundation, a nonpartisan Washington-based think tank, estimates that the average tax bill is projected to drop slightly to $3,476 in 2027, $3,356 in 2028, and $2,763 in 2029. The projected tax cuts vary by county, with New York County — which includes New York City — expected to see the largest average decrease, or $10,560 next year, the report's authors said.
The new law is expected to create at least 66,469 new jobs in the state long-term, according to the report.
Overall, the average tax cut per American for 2026 will be $3,752 because of Trump's spending package, which is expected to create nearly 1 million new jobs, according to the Tax Foundation.
Trump signed his One Big Beautiful Bill, the centerpiece of his economic agenda, into law on July 4 after it passed both the House of Representatives and Senate in a largely partisan vote. It includes sweeping tax cuts and additional funding for the military and border security, but calls for cuts to Medicaid, food stamps and other safety-net programs in coming years. The Congressional Budget Office said the law will add $2.4 trillion to the nation's debt.
The new law raises the cap on state and local tax deductions over the next five years to $40,000 for those making less than $500,000 per year, expands child tax credit and standard deductions, and reduces tax on tips and overtime pay and Social Security payments, among other provisions.
The Tax Foundation touted the spending bill as "the most significant legislative changes to federal tax policy since the 2017 Tax Cuts and Jobs Act," which was passed in Trump's first presidency.
"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," White House deputy press secretary Anna Kelly said in a statement. "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."
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