Several Tennessee counties can expect to see significant tax cuts in the coming years thanks to the "One Big Beautiful Bill Act."

Signed into law on July 4, the legislation marks the most significant overhaul of federal tax policy since the 2017 Tax Cuts and Jobs Act, which lowered average tax burdens across income levels and temporarily streamlined the filing process through structural reforms, according to an analysis by the non-partisan Tax Foundation.

The new bill not only makes the 2017 tax cuts permanent but also introduces additional breaks, including deductions on tips and overtime pay, tax relief for some seniors and an expanded child-care tax credit.

Nationally, the average tax cut for individuals is $3,752. Tennessee's average is slightly higher at $3,785.

Here are the Tennessee counties expected to save the most.

East Tennessee saw the highest concentration of counties that will see significant tax cuts in the coming years, but the largest tax cut comes from a county in Middle Tennessee.

Residents of Williamson County will see the most significant average tax cut in Tennessee, by far. Individuals in Williamson County can expect an average of $9,953 in deductions from their taxes in 2026. This is 65% higher than the national average.

Williamson County: $9,953

Davidson County: $5,792

Hamilton County: $4,682

Knox County: $4,412

Sumner County: $4,176

Wilson County: $4,143

Loudon County: $4,119

Sevier County: $3,900

Blount County: $3,579

Maury County: $3,403

In Tennessee, there are eight counties with estimated savings that exceed the national average. Of these, half are in Middle Tennessee and half are in East Tennessee.

Shelby County was the West Tennessee county with the most significant estimated savings at $3,349 per resident.

According to the foundation's analysis, the legislation will reduce federal taxes on average for individual taxpayers in every state.

Taxpayers in Wyoming ($5,375), Washington ($5,372), and Massachusetts ($5,139) will see the largest average tax cuts in 2026, while taxpayers in West Virginia ($2,503) and Mississippi ($2,401) will see the smallest average tax cuts.

At the county level, the largest average tax cuts are concentrated in mountain resort areas. For example, Teton County, Wyoming, is projected to see the highest average tax cut in the nation at $37,373 per taxpayer in 2026. Pitkin County, Colorado ($21,363) and Summit County, Utah ($14,537) follow closely, likely reflecting the presence of high-income earners and business owners, stated the foundation.

In contrast, rural counties like Loup County, Nebrask, are expected to see much smaller average cuts, with an estimated $824 per taxpayer in 2026.

The Tax Foundation estimated how tax changes from the act would be distributed across different regions using national-level revenue data from its General Equilibrium Model. Their analysis focused on individual and business tax provisions, excluding changes to the estate tax.

To break down the impact by county, they used 2022 IRS data, which includes various tax details by location. These estimates don’t account for broader economic effects like changes in GDP.

Using IRS data, they matched national revenue estimates to counties based on specific tax characteristics, then averaged the results by the number of filers in each area. However, the accuracy of this analysis is limited, said the federation, especially for newer and more targeted provisions like the tipped income deduction due to gaps in county-level IRS data.

For business-related tax changes, the foundation assumed the financial impact would be shared between capital and labor income. Initially, they estimated that corporate taxes would mostly affect capital income (90% in the first year), gradually shifting to an even split between capital and labor income by the fifth year.

Job impacts at the state level were estimated using national job projections from the model and the distribution of labor and capital income across states.

Diana Leyva covers trending news and service journalism for the Tennessean. Contact her at Dleyva@gannett.com or follow her on X at @_leyvadiana

Jordan Green covers trending news for The Commercial Appeal. She can be reached at jordan.green@commercialappeal.com.

This article originally appeared on Memphis Commercial Appeal: Which TN counties can expect to save the most under Trump's tax cuts?