Americans in 12 States Will Pay Less in Taxes This Year

A dozen states have moved to decrease state income tax as many residents struggle under the yolk of “Bidenonomics.”

According to the Tax Foundation group—a nonpartisan organization that advocates for lower taxes, most of the 12 states that are lowering taxes are led by Republicans.

Fox Business provided a profile of the states that will be lowering taxes in 2024. A summary follows:

Arkansas 

Gov. Sarah Sanders Huckabee has pushed to accelerate tax reforms that were scheduled to be implemented in 2025. Accordingly, beginning in January 2024, the “top individual income tax rate in Arkansas fell to 4.4%, down from 4.9% the previous year.”

Connecticut 

Connecticut is known as the “richest state in the nation,” but its middle class is languishing amid high inflation. Accordingly, the legislature has approved a 1% reduction in state income tax for individuals earning less than $150,000 or married couples earning less than $300,000 annually.

Georgia 

Georgia will adopt a flat tax system which increases taxes on high-income earners and slightly lowers taxes for the middle class. A flat tax rate of 5.49% statute was signed by Republican Gov. Brian Kemp in 2022 and goes into effect this month.

Indiana 

Indiana lawmakers have offered a slight tax rate decrease as of January 2024. The new rate reduces taxes from 3.15% to 3.05%. The new rate advances the previous tax reduction plan by one year.

Iowa 

Iowa is inching toward a flat tax rate system. The 3.9% flat tax, approved by Republican Gov. Kim Reynolds in 2022, will roll out in  2026. The current average tax rate in Iowa is 5.7%.

Mississippi 

Mississippi is implementing a flat tax of 4.7% this year. The tax will be required of residents with income exceeding $10,000. The 2023 average tax rate was 5%.  The tax rate will fall to 4.4% in 2025 and to 4% in 2026.

Montana 

In 2021, Montana combined its seven tax brackets into two. This year, the top tax rate for Montana residents will decrease from 6.75% to 5.9%. Lower-income residents (defined as individuals earning more than $20,500 annually and couples earning more than $41,000) will decrease to 4.7%.

Nebraska

This year, the tax rate for Nebraska residents earning more than $100,000 will drop from 7.25% to 5.84%.

New Hampshire

New Hampshire’s tax rate was to be lowered from 4% to 3% in 2024. That plan was scrapped in lieu of “phasing out a tax on interest and dividends income.”

North Carolina

This year, North Carolina’s flat income tax rate will decrease a quarter point to 4.5%.

Ohio

In 2023, Ohio’s legislature consolidated the top two marginal tax rates in favor of a flat tax of 3.5%. The new tax rate goes into effect this month.

South Carolina

High-income earners in South Carolina will see a tenth of a point reduction in their tax rate in 2024. The new 6.4% will progressively move toward 6% in the coming years.

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