As the 2026 midterm elections approach, Republicans are highlighting former President Donald Trump’s “big beautiful bill” to rally support, emphasizing the tax relief it provided to millions of Americans. Officially named the “Working Families Tax Cuts,” the legislation made permanent the tax changes from Trump’s 2017 Tax Cuts and Jobs Act while introducing new deductions for tip income, overtime earnings, seniors, and auto loan interest. Treasury Secretary Scott Bessent recently noted that over 64 million taxpayers have claimed at least one of these signature new tax breaks. However, experts caution that the benefits have varied significantly depending on individual taxpayers’ financial situations.

The 2025 law notably extended key elements of the 2017 tax reform, including lower tax brackets, enhanced standard deductions, expanded child tax credits, and a higher exemption for estate and gift taxes. Without this extension, an estimated 62% of Americans would have faced tax increases in 2026. Most of the value from the legislation came from making these previous cuts permanent, which generally maintained the status quo for many taxpayers rather than dramatically altering their obligations. Garrett Watson of the Tax Foundation emphasized that the new provisions introduced a more targeted set of benefits that affected specific groups differently.

Among the additional tax breaks introduced, significant deductions were created for tip income and seniors, averaging around $7,000 and $7,500 respectively. These deductions reduce taxable income but primarily assist those who owe taxes, meaning the lowest earners gain less from such breaks since they often have minimal tax liability. Additionally, the bill increased the federal SALT (state and local tax) deduction cap from $10,000 to $40,000 for 2025, benefitting filers who itemize, especially in high-tax states like California and New Jersey. However, this boost is most advantageous to taxpayers in upper-middle and higher income brackets, as the deduction phases out at incomes above $500,000.

Tax refunds—the difference between taxes owed and prepaid—have been watched as a barometer of the bill’s impact, with the average refund increasing by 11.5% to $3,276 during the 2026 filing season. Yet, experts warn that refunds fluctuate due to various factors beyond tax changes, such as withholding rates and income shifts. Public awareness of the bill remains limited; nearly half of Americans say they cannot explain the “One Big Beautiful Bill Act,” according to a recent Politico poll. As election day nears, it is unclear how much the tax breaks will influence voter behavior, despite their prominence in Republican campaigning.