by Mike Shedlock at MishTalk
On January 1, 2023, 38 states had noteworthy tax changes. 37 of the changes put extra money in people’s pockets. Here’s the result in pictures.
The Tax Foundation noted State Tax Changes Taking Effect January 1, 2023
On January 1, 2023, thirty-eight states have noteworthy tax changes taking effect. Most of these changes represent net tax reductions, the result of an unprecedented wave of rate reductions and other tax cuts in the past two years as states respond to burgeoning revenues, greater tax competition in an era of enhanced mobility, and the impact of high inflation on residents.
Eleven states have individual income tax rate reductions taking effect on January 1: Arizona, Idaho, Indiana, Iowa, Kentucky, Mississippi, Missouri, Nebraska, New Hampshire (interest and dividends income only), New York, and North Carolina. Three of these states—Arizona, Idaho, and Mississippi—are converting from graduated-rate income tax structures to flat tax structures on New Year’s Day.
One state, Massachusetts, has an income tax rate increase taking effect. Massachusetts’s individual income tax will convert from a flat to a graduated-rate tax with a new rate of 9 percent on income exceeding $1 million.
Five states—Alabama, Delaware, Iowa, Rhode Island, and Nebraska—are newly exempting all or a portion of retirement income or military pension income from income taxation.
Two states, Hawaii and Illinois, will expand their earned income tax credits (EITCs).
Personal Income Three Ways…
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