WASHINGTON, D.C. (April 15, 2026) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, released new state-specific reports outlining the economic benefits and massive tax savings small business owners will see this Tax Day now that the 20% Small Business Deduction has been made permanent. The reports also detail several other federal tax relief wins that were signed into law.

View the state-specific reports here.

“Small businesses tend to pay more in taxes than their large corporate competitors, but the 20% Small Business Deduction allows them to keep more of their hard-earned money and decide how to reinvest it back into their business,” said NFIB President Brad Close. “By making the Small Business Deduction permanent, Congress and President Trump replaced the threat of a massive tax hike with long-term tax certainty. This historic accomplishment will free up resources for small business owners to better serve their business, employees, and the local communities they support.”

Since 2017, the Small Business Tax Deduction has allowed small businesses to deduct up to 20% of their business income. This has empowered them to grow, hire, invest in their employees, and give back to their communities. Without action by Congress, this essential tax deduction was set to expire at the end of 2025.

After being passed by Congress, President Trump signed legislation on July 4, 2025, making the Small Business Tax Deduction permanent. This permanent tax relief means America’s small businesses can use more of their hard-earned money to support their business and employees instead of sending it to their state and federal government. It also provides certainty and levels the playing field for small businesses against their large corporate competitors.

Each state’s report includes:

• The number of small businesses that avoided higher taxes from the deduction being made permanent.
• The projected increase in each state’s jobs and economic growth from the deduction being made permanent.
• The anticipated impact of the 20% Small Business Deduction on the U.S. economy, including GDP growth and job creation, due to the deduction being made permanent.