several states are tax reduction this year, putting more money in the pockets of some Americans as they grapple with a cost-of-living crisis brought on by stubbornly high inflation.

At least 11 states, most led by Republicans, have cut taxes for residents in some way this year, according to the Tax Foundation, a nonpartisan group that lobbies for lower taxes.

“We are seeing the culmination of two years of significant tax cuts across the country, in response to record high revenues and a desire for states to remain competitive in a much more mobile environment,” said Jared Walczak, vice president of state projects. of the Tax Foundation.

Here’s a closer look at where state taxes are being cut.

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Arizona

Arizona has adopted a flat tax plan that eliminates its old sliding scale income tax, which started at 2.59% and had a maximum tax of 4.5% for income over $159,000 per year for individuals. All taxpayers in the state will now pay a maximum rate of 2.5%.

“This tax relief keeps Arizona competitive and preserves our reputation as a job magnet and opportunity generator,” said the former Arizona governor. Doug Ducey, a Republican, in a statement in September.

Scottsdale-Arizona

Downtown Scottsdale and suburban Phoenix, Arizona with the White Tank Mountain Range in the background (iStock/iStock)

In all, the plan will save taxpayers an estimated $1.9 billion next year, though critics say the plan largely benefits wealthy Arizonans.

arkansas

The top individual income tax rate in Arkansas was lowered to 4.9% from the previous high of 5.9%.

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The change, which is retroactive to 2022, accelerates rate reductions that were originally scheduled to begin in fiscal 2025.

Idaho

Idaho adopted a flat 5.8% individual income tax rate that will take effect this year.

That compares with the previous top rate of 6%.

Indiana

The flat state individual income tax rate has been reduced from 3.25% to 3.15%, effective in 2023 and 2024. There are certain triggers that could further lower the rate to 2.9% if meet certain conditions.

Iowa

Iowa will begin phasing in a flat 3.9% tax this year, though the change will take effect for four years, so some residents will see the benefits sooner than others.

DesMoines, Iowa

A pedestrian crosses the street near the Iowa State Capitol in Des Moines, Iowa on February 21, 2020. 3, 2020. (Photographer: Al Drago/Bloomberg via Getty Images/Getty Images)

The $1.9 billion tax cut, signed into law last year by the Republican governor. Kim Reynolds: Also eliminates taxes on retirement income and reduces taxes for corporations.

“With this bill, Iowa now has the fourth lowest individual income tax rates in the nation,” Reynolds said in a statement. “There has never been a better time in Iowa for bold and sustainable tax reform.”

Kansas

Kansans looking to save some money on groceries this year are in luck: The state has implemented the first phase of a plan to eliminate taxes on food. As of January 1, the state food tax was reduced to 4% instead of 6.5%.

The tax will continue to decrease until reaching zero in 2025.

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Kentucky

Starting in January, Kentucky lowered the individual income tax rate and expanded its sales tax base. The individual income tax rate fell from 5% to 4.5%, but the sales tax will now apply to a number of new services, including car rental, ride-sharing and taxi services. . On top of that, a 6% excise tax will be applied instead of the general sales tax.

IRS Forms 1040 W-2

Internal Revenue Service Forms 1040 and W-2. (iStock/iStock)

Missouri

Republican Gov. Mike Parson last year signed into law a projected $760 million tax cut, which he hailed as the “largest tax cut in state history.”

Under the new tax law, Missouri’s top individual income tax rate fell to 4.95% in January from the previous rate of 5.3%. (The tax rate was already scheduled to drop to 5.2% this year.)

On top of that, the first $1,000 of income is now tax-free.

Mississippi

Mississippi is converting to a flat tax system, starting in January. A 4% tax is eliminated on taxable income between $5,000 and $10,000; instead, a flat rate of 5% on rents over $10,000.

The tax rate will drop to 4.7% in 2024, 4.4% in 2025, and 4% in 2026.

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NY

New York accelerated income tax rate reductions for middle-class families, and the rate reductions originally planned for 2025 are now scheduled to take effect this year.

kathy hochul

New York State Governor Kathy Hochul waves during an election night event at Capitale in New York City on November 8, 2022. (Photo by TIMOTHY A. CLARY/AFP via Getty Images/Getty Images)

The tax rate on income between $13,900 and $80,650 for single filers will be reduced to 5.5%. For individual taxpayers making between $80,650 and $215,400, the tax rate will drop to 6%>

That marks a decrease from fiscal year 2022 when the respective rates at those income levels were at 5.85% and 6.25%.

North Carolina

The single tax rate in North Carolina will drop to 4.75% in 2023, down from the previous rate of 4.99%.

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