If You're in One of These 11 States, You'll Pay Less in Taxes This Year The cuts come amid high inflation and economic uncertainty.
By Amanda Breen •
Tax season is underway, and depending on where you live, you might not owe as much as you did last year.
At least 11 U.S. states, the majority led by Republicans, are reducing individual income taxes this year, according to the nonpartisan Tax Foundation, a group that lobbies for lower taxes.
"We are seeing the culmination of two years of substantial tax cutting across the country, in response to historically high revenues and a desire for states to remain competitive in a much more mobile environment," says Jared Walczak, the vice president of state projects at the Tax Foundation, per Fox Business.
Related: Taxes on Small Businesses Across the Globe, Mapped: See Where Rates Are High, Low — and Nonexistent
The cuts come at a time of high inflation and economic uncertainty, with a reported 69% of Americans fearing a possible recession by the end of 2023, per Bankrate.
In addition to the individual income tax rate reductions, five states, including Arkansas, Iowa, Nebraska, New Hampshire and Pennsylvania, will implement corporate income tax reductions.
These are the 11 states slashing individual income taxes:
1. Arizona
Maximum rate: 2.5%
2. Idaho
Maximum rate: 5.8%
3. Indiana
Maximum rate: 3.15%
4. Iowa
Maximum rate: 3.9%
5. Kentucky
Maximum rate: 4.5%
6. Mississippi
Maximum rate: 5%
7. Missouri
Maximum rate: 4.95%
8. Nebraska
Maximum rate: 6.64%
9. New Hampshire (interest and dividends income only)
Maximum rate: 4%
10. New York
Maximum rate: 5.5%
11. North Carolina
Maximum rate: 4.75%
