Signed in July, the One Big Beautiful Bill Act rewrites key parts of the federal tax code, offering substantial cuts that ripple across income brackets and industries. For Alaska residents, the average taxpayer will save $3,485 in 2026 compared with what they’d owe under the old rules, according to a fresh analysis from the Tax Foundation.
This isn’t some marginal adjustment buried in fine print. It’s the largest federal tax overhaul since 2017, with real money at stake for families, workers, and business owners alike.
The Alaska congressional delegation backed it without hesitation. Congressman Nick Begich, along with Senators Dan Sullivan and Lisa Murkowski, helped shepherd the bill through, aligning with a broader push to cement and expand the individual tax cuts from the 2017 Tax Cuts and Jobs Act. Those were set to expire in 2026. They won’t now.
But this bill does more than lock in expiring provisions. It layers on new ones: a beefed-up child tax credit, a higher standard deduction, and fresh deductions for tipped and overtime income. It goes further by wiping out federal taxes on tips, overtime pay, and even Social Security income—moves that directly affect hourly and retired workers.
Businesses aren’t left out. They’ll retain full write-offs for research and development and gain permanent 100 percent bonus depreciation. These changes incentivize domestic investment and long-term planning, rather than short-term tax positioning.
On the national level, the average filer will save $3,752. But the picture shifts depending on geography. High-income enclaves like Teton County, Wyoming, top the charts—$37,373 in average savings. West Virginia and Mississippi sit at the other end, with cuts just north of $2,400.
Alaska doesn’t make either extreme. But its taxpayers still benefit handsomely, and that’s only half the story.
The Tax Foundation estimates that the OBBBA will drive job growth, adding nearly 938,000 full-time equivalent positions nationwide. While Alaska’s exact share hasn’t been modeled, projections suggest it will follow national trends. In California, over 132,000 new jobs are expected. Texas: 81,000. These aren’t speculative figures—they’re based on how tax policy shapes capital flow and payroll decisions over time.
Some pieces of the law will sunset by 2030, including deductions for tips and overtime. Others are permanent. Even with the phase-outs, taxpayers will still see significant relief well into the next decade. By 2035, the average filer is projected to save $3,301 annually, adjusted for inflation.
The OBBBA is complicated. But its outcome is simple: lower taxes for most, with broader implications for growth, hiring, and long-term stability in the federal code. That kind of certainty has been in short supply for years. Now, at least in tax policy, it’s back.
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