In June of 2026, the US Department of Treasury analyzed the impact of the recent tax law changes (as well as the importance of extending the 2017 tax law) on working families. The complete analysis can be found here. Below you will find some of the highlights from the analysis:
- Tax relief came primarily to families making less than $200k per year
- Those making between $100k and $200k experienced an average tax cut of $1250; those making between $50k and $100k averaged $815
- No tax on tips - saw 7.5 million filers claim an average deduction of $7k
- No tax on overtime - saw over 29 million filers claim an average deduction of over $3k
- Enhanced Senior Deduction - over 35 million filers claimed an average deduction of over $7500
- No tax on car loans - average deduction of over $1800 for 1.4 million filers
- Trump Accounts - 5.5 million accounts opened
- Enhanced Child credit - 40 million families claimed the credit
- Total individual tax relief - $82 billion
These numbers are for returns filed by April 15th. They do not account for taxpayers who filed extensions to October 15th. Thus, the numbers will show greater impact once the extended returns are added to the analysis.
The good news is that the 2017 law was made permanent along with enhancements from the One Big Beautiful Bill (OBBB) which was passed in July of 2025. Tax bills since 2001 have carried with them uncertainty because they have included sunset provisions (expiration dates) in order to get them passed through Congress. This was true with the 2017 bill. It was set to expire in Dec of 2025. Now that the bill is made permanent, individuals and businesses have more certainty in their future tax planning.
There is always a risk that this current tax bill can be repealed and replaced by a future Congress. But for now, it is the law in place and it is providing significant relief to taxpayers.
LFC will be watching for any update on these statistics once the extended returns are processed and added to the current data.
