"The savings are the result of the OBBBA extending the 2017 Tax Cuts and Jobs Act, making many of the changes permanent, while adding some new short- and long-term tax rules, including the " No Tax on Tips" provision (which allows eligible tipped workers to deduct a portion of their income from tips on their federal income taxes), a car loan deduction, a deduction for charitable donations, and a child credit."
"The nonprofit Tax Foundation found that taxpayers will see an increase in after-tax incomes of about 5.4%, on average, with the bottom 20% of earners saving 2.6% in after-tax income, and those at the top 60th to 80th percentiles saving 6.3% in after-tax income."
"How the new 2026 tax law affects take-home pay, by income bracket Here is the breakdown on how much American taxpayers are expected to save based on earnings brackets, according to the Tax Foundation and CNBC: 0%-20%, up to $17,735 in annual income: 2.6% increase in take-home pay 20%-40%, $17,736-$38,572 in annual income: 5.2% increase in take-home pay 40%-60%, $38,573-$73,905 in annual income: 5.7% increase in take-home pay 60%-80%, $73,906-$130,661 in annual income: 6.3% increase in take-home pay 80%-100%, above $130,661 in annual income: 5% increase in take-home pay"
A Tax Foundation interactive calculator compares 2026 tax liability before and after provisions in the One Big Beautiful Bill Act (OBBBA), signed into law in July. The OBBBA extends many 2017 Tax Cuts and Jobs Act changes and makes them permanent while adding provisions like a No Tax on Tips deduction for eligible tipped workers, a car loan deduction, charitable donation deductions, and a child credit. The Tax Foundation estimates average after-tax incomes will rise about 5.4%, with the bottom 20% up 2.6% and the 60th–80th percentiles up 6.3%. Bracket-specific increases range from 2.6% to 6.3%, and the Tax Policy Center estimates an average tax reduction around $2,900.
Read at Fast Company
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