For Many Families, Trump-GOP Healthcare Premium Hikes Wipe Out Potential Tax Cuts

October 29, 2025

For millions of American families, the Trump-GOP hike in health-insurance premiums set for the end of the year will far outweigh any minor tax cut they may receive from President Trump & Congressional Republicans’ Big Ugly Law. The GOP has chosen to shut down the government rather than prevent premiums from rising 30% on the more than 24 million Americans enrolled in the Affordable Care Act (ACA) marketplace.

An analysis conducted by Americans of Tax Fairness, based on data from the Institute on Taxation & Economic Policy and Center on Budget Policy Priorities, finds that for the tens of millions of families the small benefit of the Trump tax cut would be stolen away through increased health insurance costs.

The $4.5 trillion law overwhelmingly benefits the wealthy, with households making over a million dollars in 2027 due to get a tax cut that year of almost $100,000 on average. Meanwhile the median family is estimated to receive $1,500 next year. As a result of the policy choices to prioritize billionaires over families is if you are a single 45-year old earning $62k would pay $1,470 in higher health insurance premiums due to the expiration of the Affordable Care Act tax credits, on average completely wiping out any potential benefits.

The situation is even worse if you are an older American or have a family. It is projected that a 60-year-old couple earning $82k is going to be faced with $18,400 in higher healthcare costs, and a family of four earning $126k will be hit with $8,400 in increased insurance premiums. This dire situation for millions of American families is true across the board in every state, as shown in the chart below. At a time when the costs from groceries to childcare to utilities are rising for millions of workers and families across the country, this spiking of healthcare costs will further devastate hard-working people.

List of States Median Tax Cut (2026) 45-year-old individual earning $62,000 60-year-old couple, earning $82,000 Family of four, earning $126,000
Average Health Insurance Premium Cost Hike
Alabama $1,040 $1,984 $20,297 $8,510
Alaska $2,490 $7,582 $44,556 $26,700
Arizona $1,250 $289 $13,927 $5,020
Arkansas $1,210 $940 $16,373 $6,862
California $1,650 $1,672 $19,125 $8,933
Colorado $1,720 $1,008 $16,628 $7,054
Connecticut $2,150 $4,126 $28,350 $15,878
Delaware $1,590 $1,970 $20,246 $9,778
District of Columbia $1,750 $3,131 $22,894 $12,467
Florida $1,140 $1,713 $19,278 $9,049
Georgia $1,140 $1,414 $18,157 $8,205
Hawaii $1,840 $622 $17,117 $6,594
Idaho $1,430 $642 $15,252 $6,018
Illinois $2,020 $1,157 $17,188 $7,476
Indiana $1,670 $0 $12,499 $3,946
Iowa $1,470 $547 $14,895 $5,749
Kansas $1,290 $1,686 $19,176 $8,972
Kentucky $1,160 $723 $15,557 $6,248
Louisiana $1,080 $1,835 $19,737 $9,394
Maine $1,490 $2,133 $20,858 $10,238
Maryland $1,890 $0 $11,633 $3,294
Massachusetts $2,130 $548 $11,244 $5,802
Michigan $1,530 $208 $13,621 $4,790
Minnesota $1,890 $0 $11,531 $4,069
Mississippi $860 $1,306 $17,749 $6,714
Missouri $1,290 $1,360 $17,953 $8,051
Montana $1,360 $2,242 $21,266 $10,545
Nebraska $1,550 $2,865 $23,610 $12,310
Nevada $1,290 $343 $14,130 $5,174
New Hampshire $2,660 $0 $9,594 $1,759
New Jersey $1,930 $1,401 $18,106 $8,166
New Mexico $1,080 $1,713 $19,278 $9,049
New York $1,670 $4,210 $11,990 $16,308
North Carolina $1,220 $1,604 $18,870 $8,742
North Dakota $1,760 $2,011 $20,399 $9,893
Ohio $1,540 $709 $15,507 $6,209
Oklahoma $990 $1,523 $18,565 $8,511
Oregon $1,400 $1,645 $19,023 $7,612
Pennsylvania $1,590 $981 $16,526 $6,977
Rhode Island $1,500 $492 $14,691 $5,596
South Carolina $1,150 $1,116 $17,036 $7,360
South Dakota $1,500 $3,123 $24,579 $13,039
Tennessee $1,160 $1,726 $19,329 $9,087
Texas $1,320 $1,360 $17,953 $8,051
Utah $1,570 $2,488 $19,659 $9,457
Vermont $1,530 $10,054 $23,678 $32,350
Virginia $1,780 $0 $11,990 $3,562
Washington $2,260 $614 $15,150 $5,941
West Virginia $1,020 $7,190 $39,869 $24,549
Wisconsin $1,600 $1,442 $18,259 $8,281
Wyoming $1,770 $6,540 $37,422 $22,707

Source: Healthcare Hikes vs Tax Cuts (Fact Sheet)