Key Findings:
- Wyoming ranks #1 as the worst state for digital agency tax savings, with average savings of just $6,719.
- Several low-ranking states offer no state corporate income tax, reducing the impact of the federal cut.
- Other states rank low due to small agency footprints, low revenue bases, or minimal business concentration.
In 2025, a sweeping federal tax cut could deliver much-needed relief to some U.S. digital agencies.
This year's proposed change to the federal corporate tax rate, cutting it from 21% down to 15%, will allow many businesses to retain more of their earnings.
But how much digital agencies save depends on location, and in some states, the difference is pretty extreme.
While some agencies stand to save more than $107,000 on average, those in lower-ranking states face saving five figures less than others, according to a new analysis by B2B marketplace DesignRush.
In fact, in some states, the average savings is less than $7,000, showing dramatic regional disparities. DesignRush ranked tax savings for digital agencies by state to pinpoint where they may be getting the short end of the tax break — and what's driving the gap.
Where Do Agencies Save the Least Money
1. Wyoming
- Agencies: 272
- Average savings per agency: $6,719
Wyoming lands at the bottom of the list. Even though it’s known for being tax-friendly, agencies here already pay conservatively, so a federal tax cut doesn’t save them much more.
Less tax to begin with means there’s not much left to cut, making the average benefit underwhelming.
2. Montana
- Agencies: 199
- Average savings per agency: $7,725
Montana has a small agency scene and relatively low business tax obligations. The federal tax change doesn’t make a big difference here. The savings are modest because the financial base is already quite lean.
3. New Mexico
- Agencies: 169
- Average savings per agency: $10,825
Agencies in New Mexico might be hoping for a windfall, but they won’t find it here. With fewer agencies and lower revenues, the impact of the tax cut is smaller.
According to U.S. News & World Report, New Mexico ranks #49 overall among U.S. states, reflecting ongoing challenges in education, economy, and infrastructure. That broader economic context helps explain why the tax savings potential here remains limited.
4. Alaska
- Agencies: 96
- Average savings per agency: $12,708
Alaska’s agencies tend to pay more in tax, but there are so few of them that the average savings remain low. Even with higher taxes, the limited number of businesses keeps the per-agency benefit small.
5. New Hampshire
- Agencies: 261
- Average savings per agency: $13,758
New Hampshire has no corporate income tax, which usually works in favor of businesses.
In this case, it means there's simply less room for savings under the federal rate change. Agencies here already pay so little that the tax cut barely moves the needle.
6. Hawaii
- Agencies: 159
- Average savings per agency: $15,153
Hawaii is beautiful but expensive, and agencies here won’t be seeing much tax relief. With smaller client bases and higher costs of doing business, the benefit of the tax cut feels more like a drop in the bucket.
7. West Virginia
- Agencies: 75
- Average savings per agency: $16,202
West Virginia has one of the smallest agency counts in the country. Even with a decent tax cut, the average savings per agency remains too low to significantly change financial strategies.
8. Vermont
- Agencies: 122
- Average savings per agency: $18,445
Vermont’s digital sector is still growing, with 65 businesses recently ranked among the Best Places to Work in Vermont 2025.
While the tax cut applies here, the total dollars saved per agency won’t stretch far. For most businesses, it’s a helpful, but hardly transformational change.
9. South Carolina
- Agencies: 596
- Average savings per agency: $19,897
South Carolina has a fairly active digital agency scene, with nearly 600 firms — more than many states ranked higher. But despite this scale, the average savings per agency remains under $20,000.
The state’s corporate tax rate is already relatively low, and many agencies in the region operate with modest annual revenues, limiting the dollar value of a 6% federal tax reduction.
10. Florida
- Agencies: 7,693
- Average savings per agency: $20,304
Florida hosts one of the largest agency populations in the country, yet it ranks in the bottom 10. Because the state already has no income tax, the new federal rate creates only a small additional advantage.
-content.jpg "2025’s Worst States for Agency Tax Savings Revealed")
3 Ways Businesses Benefit from Tax Cuts
In Nebraska, which ranked #1 in tax-saving states, the average digital marketing agency could save over $220,000 annually under the proposed corporate tax cut.
With fewer than 300 agencies in the state, each one stands to benefit significantly — a number that could fund an entire year’s salary for a new hire, a major rebrand, or a national ad campaign.
Now compare that to Wyoming, which ranks dead last. Despite its low-tax reputation, the average savings per agency is just $6,719. That’s not even enough to cover the cost of a website redesign or upgrade to a full marketing stack.
If you're running an agency and thinking about where to grow, open a new office, or even hire remotely, these numbers aren’t just stats — they could help shape your next big move.
-preview.jpg)
