In late 2017, the House of Representatives passed the final version of a $1.5 trillion tax bill, the most comprehensive overhaul of the tax code in decades. After cheers from the right and boos from the left quieted down, wide swaths of American taxpayers were left wondering one thing: How will this affect our bank accounts?
Though experts have already noted which provisions could affect your tax return the most, nearly 60 percent of Americans still say they don’t understand exactly what will change. In order to provide a broad overview of how the new tax code will impact the country, Wallethub ranked the impact on all 50 states and the District of Columbia. Wallethub used data on average tax changes for different income brackets from the Institute on Taxation and Economic Policy’s 2018 report to generate estimates of each state’s average tax change using a regression model.
Wallethub ranked the impact on low-income families who make $25,000 per year, middle-income families who make $50,000 per year and high-income families who make $150,000 per year, in addition to ranking the states overall (the higher the ranking, the more affected that state is by the new code).
Click ahead to see how the new tax code will affect residents in your state in 2018 — and decide whether or not you might want to hire an accountant for the next tax season.