Working Families Tax Cuts Bring Bigger Paychecks

Washington, D.C.-Workers receiving their first paychecks of 2026 are finding them bigger than ever thanks to the Working Families Tax Cuts spearheaded by U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho). Between stronger economic growth and employers updating tax withholding according to the new law, Idahoans can expect to see up to $6,400 in real wage increases this year. Additionally, because many of these changes took effect retroactively to the beginning of 2025, Americans will see supersized refunds this tax filing season, which the U.S. Department of the Treasury estimates will reach $100 billion in total.

"Americans are seeing bigger paychecks now that they reflect the changes Republicans made in our Working Families Tax Cuts," said Crapo. "Helping people keep more of the money they work hard for is both a matter of principle and an important part of spurring economic growth. With more money in their pockets, Americans can begin to move past the Biden-created affordability crisis."

Key wins:

• Permanent lower tax rates
• Permanent increased standard deduction
• No tax on tips for millions of tipped workers
• No tax on overtime for millions of hourly employees
• Increased tax relief for millions of seniors

According to the Tax Foundation's 2026 tax calculator, taxpayers across the income spectrum can expect to save thousands this year thanks to the legislation:

• A single adult, making $30,000, of which $10,000 are qualified tips: Tax cut of $1,462
• A single adult with two kids, making $40,000: Tax cut of $2,010
• A single adult, making $75,000, of which $10,000 is qualified overtime: Tax cut of $4,192
• A married couple filing jointly, with two kids, making $85,000: Tax cut of $2,425
• A married couple filing jointly, with three kids, making $110,000: Tax cut of $3,580

Click HERE and HERE to see how the Working Families Tax Cuts supports American workers.

Click HERE to learn more about the Finance Committee provisions in the Working Families Tax Cuts.

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