13 States With Income Tax Cuts in 2024

The nonprofit Tax Foundation last week reported that 34 states will start 2024 with tax changes, including 17 states that will cut either individual or corporate income taxes, or both. The report noted that a wave of significant tax reforms has swept across the country during the past several years as states came out of the pandemic with revenue surpluses and faced inflation. Whether and how this trend will persist is unknown, the Tax Foundation said, but the firm pointed to three years of evidence indicating that many states understand and value the importance of creating and maintaining a tax code that is stable and intended to enourage business growth. According to the report, state tax changes generally take effect either at the start of the calendar year or the fiscal year, July 1 for most states. It said rate changes for major taxes typically are implemented effective Jan. 1, either prospectively as in these cases, or retroactively as may happen under legislation enacted in the new year. See the accompanying gallery for 13 states that are reducing personal income taxes in 2024, according to the Tax Foundation.