The Treasury Department released an analysis confirming that the latest tax legislation, which made several expiring provisions permanent, handed tax relief to a vast majority of taxpayers. Over 97% of filers saw a reduction in their tax bill, and the benefits were concentrated among earners making less than $200,000 a year.

Over 7.5 million claim the no‑tax‑on‑tips provision, 90% under $100K

According to Treasury Secretary Scott Bessent, more than 7.5 million taxpayers used the newly permanent no‑tax‑on‑tips rule, and 90% of those filers earned under $100,000. The data also shows that 99% of the tip‑benefit users fall below the $200,000 threshold, underscoring the policy’s focus on lower‑ and middle‑income workers.

29 million overtime‑deduction users, 75% earn under $100K

The analysis revealed that 29 million filers took advantage of the no‑tax‑on‑overtime deduction. Of those, three‑quarters earned less than $100,000, and 96% earned under $200,000, indicating that the overtime relief is similarly skewed toward modest‑income earners.

35 million seniors benefit from enhanced deduction,68% under $100K

President Trump’s pledge to end taxes on Social Security benefits materialized in an enhanced deduction claimed by 35 million seniors.. Treasury figures show that 68% of these seniors earned under $100,000,and 94% earned under $200,000, reinforcing the claim that the senior provision targets lower‑income retirees.

Why the 97% figure reflects avoided tax hikes, not new savings

The Treasury noted that the 97% cut rate is partly driven by the avoidance of tax increases that would have kicked in when the 2017 tax cuts expired. In other words, many filers simply avoided a higher bill rather than receiving a net new rebate.

Who still misses out? High‑income earners above $200K

Because the legislation phases out benefits at higher income levels, taxpayers earning above $200,000 see little to no relief. The report does not break down the exact number of high‑income filers who experienced a tax increase, leaving a gap in the distributional picture .