Make $100,000? Here's where you're likely to get the biggest tax cut

Your tax reform questions answered

Your tax reform questions answered

What was true of the old tax code is still true of the new one: Two people who make the same income could still have very different federal tax bills.

That same principle also applies to the recent tax cuts.

While the majority of filers will see a tax cut this year, a new Tax Foundation analysis found there are differences in how big the average cuts will be in a given income group based on where filers live.

For example, someone with a household income between $ 100,000 and $ 200,000, would see the biggest average tax cut in Alaska ($ 2,174) and the smallest in Maryland ($ 1,546).

The same is true for households with adjusted gross incomes between $ 50,000 and $ 75,000. For them, the average tax cut would be $ 1,516 in Alaska, whereas it drops to $ 1,195 in Maryland.

The Tax Foundation’s findings were based on IRS county-level data.

A few reasons may account for the differences from state to state. One is the federal tax law’s new $ 10,000 cap on state and local tax deductions. That cap is more likely to affect those in high-tax states and especially high-income taxpayers in those states.

Alaska doesn’t have an income tax so residents there are less likely to be negatively affected by that cap, even though they do pay state sales and property taxes, which are also deductible.

Maryland, by contrast, has income, sales and property taxes along with higher average incomes and property values. So there is a higher probability that the SALT deduction limit would hurt residents there.

Another reason why net tax cuts might vary from state to state for filers in the same income group: Average family size. “States with larger families, on average, would also see large net tax cuts,” said Nicole M. Kaeding, director of special projects at the Tax Foundation.

Here are the states where the average tax cut will be highest and lowest for households at different income levels, according to the Tax Foundation analysis.

Households with AGIs between $ 100,000 and $ 200,000

Highest

Alaska $ 2,174

North Dakota $ 2,154

South Dakota $ 2,114

Wyoming $ 2,052

West Virginia $ 2,019

Lowest

Maryland $ 1,546

California $ 1,671

Oregon $ 1,702

New Jersey $ 1,710

Georgia $ 1,721

Households with AGIs between $ 50,000 and $ 75,000

Highest

Alaska $ 1,516

North Dakota $ 1,489

Utah $ 1,479

Ohio $ 1,476

Vermont $ 1.472

Lowest

Maryland $ 1,195

Georgia $ 1,262

California $ 1,266

Mississippi $ 1,279

Virginia $ 1,292

To drill down further, the Tax Foundation also measured differences by congressional districts within each state for taxpayers in similar income groups.

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  126. May I just say what a relief to uncover a person that actually knows what they are discussing online. You certainly know how to bring an issue to light and make it important. A lot more people have to look at this and understand this side of the story. I was surprised that you aren’t more popular since you certainly have the gift.

  127. Hello, I believe your site might be having web browser compatibility issues. When I look at your website in Safari, it looks fine however, if opening in IE, it has some overlapping issues. I just wanted to give you a quick heads up! Apart from that, fantastic site!

  128. I?d need to contact you here. Which is not something I normally do! I enjoy reading an article that will certainly make people believe. Additionally, many thanks for allowing me to comment!

  129. May I just say what a relief to uncover someone that genuinely understands what they’re discussing online. You actually understand how to bring an issue to light and make it important. A lot more people have to look at this and understand this side of the story. It’s surprising you are not more popular given that you certainly have the gift.

  130. After I originally commented I seem to have clicked on the -Notify me when new comments are added- checkbox and now each time a comment is added I recieve four emails with the exact same comment. There has to be a way you are able to remove me from that service? Thanks a lot!

  131. I’m impressed, I have to admit. Seldom do I come across a blog that’s both educative and entertaining, and without a doubt, you’ve hit the nail on the head. The problem is something too few people are speaking intelligently about. I am very happy I stumbled across this in my search for something relating to this.

  132. After I originally left a comment I seem to have clicked the -Notify me when new comments are added- checkbox and now every time a comment is added I receive four emails with the exact same comment. Perhaps there is a means you are able to remove me from that service? Many thanks!

  133. Oh my goodness! an incredible short article man. Thank you However I am experiencing problem with ur rss. Don?t understand why Not able to subscribe to it. Exists any individual getting similar rss problem? Any person that understands kindly react. Thnkx

  134. May I simply just say what a relief to uncover somebody that genuinely understands what they are talking about on the internet. You actually understand how to bring an issue to light and make it important. More people must check this out and understand this side of the story. I can’t believe you’re not more popular given that you definitely possess the gift.

  135. Nice post. I learn something new and challenging on websites I stumbleupon every day. It will always be helpful to read content from other writers and use something from their websites.

  136. I was suggested this blog by my cousin. I’m not sure whether this post is written by him as no one else know such detailed about my problem. You’re amazing! Thanks!

  137. An outstanding share! I have just forwarded this onto a colleague who has been doing a little research on this. And he actually ordered me breakfast simply because I stumbled upon it for him… lol. So let me reword this…. Thank YOU for the meal!! But yeah, thanx for spending some time to talk about this subject here on your web site.

  138. Area on with this article, I absolutely assume this site needs much more consideration. I?ll possibly be again to review a lot more, many thanks for that details.

  139. There are certainly a great deal of details like that to think about. That is a fantastic indicate raise. I use the ideas above as basic motivation yet clearly there are inquiries like the one you raise where the most essential point will be operating in honest good faith. I don?t recognize if ideal practices have actually arised around points like that, but I am sure that your task is plainly recognized as a level playing field. Both kids as well as women really feel the impact of simply a moment?s satisfaction, for the remainder of their lives.

  140. After research study a few of the post on your website currently, and also I genuinely like your means of blog writing. I bookmarked it to my book mark website checklist and also will certainly be examining back quickly. Pls have a look at my website too as well as let me understand what you believe.

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