Trump tax law delivered $82B in relief to 97% of US tax filers, Treasury says
WASHINGTON, DC: Nearly every American who filed taxes this year received a tax cut, with the total relief amounting to $82 billion, according to new data released by the Treasury Department on June 2.
The figures show that 97% of tax filers benefited from reductions under the One Big Beautiful Bill Act, the sweeping tax package Republicans passed last year and President Donald Trump signed into law on July 4.
Treasury officials argued that, without the legislation, taxpayers would have faced a $5 trillion tax increase triggered by the expiration of key provisions from Trump's 2017 tax law.
Treasury Secretary Scott Bessent hailed the results as evidence that the administration’s tax policies are delivering for working Americans.
“Under President Trump, our federal tax code and system reflect the American people’s mandate to reject policies that punish success with tax hikes and embrace those that restore fairness, reward work, respect hard-earned paychecks, and reignite the American Dream,” he said in a statement.
Tax cuts deliver savings across income levels
According to Treasury data, taxpayers earning between $100,000 and $200,000 who claimed the new deductions received an average tax cut of more than $1,250. Those earning between $50,000 and $100,000 saw average savings exceeding $815.
Several of the law’s new provisions accounted for some of the largest reductions.
More than 7.5 million workers took advantage of the no-tax-on-tips deduction, one of Trump’s signature promises during the 2024 campaign. Treasury said those workers reduced their taxable income by an average of $7,000.
Meanwhile, more than 29 million filers claimed deductions tied to overtime pay, lowering their tax bills by an average of $3,100. Treasury said three-quarters of those taxpayers earned less than $100,000 annually, while 96% reported incomes below $200,000.
The law’s expanded standard deduction also affected a large share of taxpayers. Treasury officials said 127 million filers, roughly 90% of all returns submitted so far, used the doubled deduction. The department expects that figure to grow as taxpayers who filed for extensions submit their returns.
Trump Accounts expand savings for families
Beyond tax reductions, the legislation included several other major policy initiatives.
The package expanded tax benefits for seniors and families, introduced incentives aimed at encouraging purchases of American-made vehicles, and created so-called Trump Accounts.
The savings accounts were designed to help families build financial resources for their children’s futures.
Treasury said more than 5.5 million Trump Accounts have already been opened. Of those, roughly 1.4 million children qualify for pilot contributions of $1,000. According to the department, 86% of the accounts are linked to families earning less than $200,000 per year
The One Big Beautiful Bill Act notably serves as the centerpiece of Trump’s second-term agenda.
Congress approved the legislation in July, with every Democrat voting against it alongside two Republican lawmakers. Senate Majority Leader John Thune guided the measure through the Senate on July 1 before Trump signed it four days later.
Economic growth projections come with risks
Supporters of the law have argued that the tax cuts and business incentives will provide a boost to the economy.
In a January analysis, the nonpartisan Tax Foundation concluded that the legislation is likely to stimulate growth while also adding to federal deficits.
“Our modeling indicates the One Big Beautiful Bill Act will boost economic growth but increase deficits,” the group said.
The Tax Foundation attributed the projected economic gains to lower marginal tax rates on work, saving, and investment, as well as permanent 100% bonus depreciation and expanded research and development expensing.
The organization estimates the law will increase US gross domestic product by 1.2% in 2026, 1.4% in 2027, and 1.5% in 2028 before settling into a long-term gain of roughly 1.2%.
