Alabama among states benefiting most by Trump’s tax overhaul

Alabama money

The Yellowhammer State is among the states reaping the most benefits from President Donald Trump‘s recently enacted federal tax overhaul.

According to a new report from personal-finance website WalletHub, Alabama takes home the no. 2 spot on the list of 2018’s States Most Affected by Tax Reform.

While the changes to the tax law won’t affect most Americans’ 2018 filings for the 2017 fiscal year, 2019 will be a much different story. Citizens of certain states will benefit more than others, too. In Alabama, high-income earners will benefit more so than in any other state.

Average tax change in Alabama (1= benefiting the most, 25= avg.):

  • 47th: Low-income families
  • 15th: Middle-income families
  • 1st: High-income families
[Photo Credit: WalletHub]

The study also concluded red states are benefiting slightly more than blue states from tax reform as red states received an average ranking of 24.17 versus blue states’ 24.62.

Along with Alabama, the states reaping the most benefits from tax reform are Alaska, Tennessee, District of Columbia and Nevada.

The states found to be least affected by the overhaul are West Virginia, Connecticut, New York, Maryland and New Jersey.

In order to determine which states will get the best tax breaks going forward, WalletHub compared the 50 states and the District of Columbia based on the state-specific average tax change for low, middle and high-income families.

Here’s how Alabama compares to the rest of the country:

Source: WalletHub