Income Tax Legislation News
Follow federal and state legislation affecting income tax rates, brackets, deductions, and credits, with explanations of what changes and when it takes effect.
West Virginia Signs a 5% Income Tax Rate Cut for 2026
West Virginia's new law cuts all five income tax rates for 2026, bringing the top rate down to 4.58%. The reduction applies from January 1, with existing bracket thresholds unchanged.
Georgia Cuts Its Income Tax Rate to 4.99% for 2026
Georgia lowers its income tax rate from 5.19% to 4.99% and raises standard and dependent deductions for 2026. The changes apply from January 1, giving eligible taxpayers relief for the full tax year.
Arkansas Cuts Its Top Income Tax Rate to 3.7% for 2026
Arkansas reduces its top individual income tax rate from 3.9% to 3.7% for 2026. The cut applies to the full tax year and keeps the lower rates and existing bracket thresholds in place.
West Virginia Signs a 5% Income Tax Rate Cut for 2026
West Virginia's new law cuts all five income tax rates for 2026, bringing the top rate down to 4.58%. The reduction applies from January 1, with existing bracket thresholds unchanged.
Utah Cuts Its Income Tax Rate to 4.45% for 2026
Utah lowers its flat income tax rate from 4.50% to 4.45% for the full 2026 tax year. The cut saves $5 per $10,000 of taxable income before credits, with the taxpayer tax credit still affecting the final bill.
Indiana Cuts Its Income Tax Rate to 2.95% for 2026
Indiana starts 2026 with a 2.95% state income tax rate, down from 3.00%. The reduction saves $40 on $80,000 of taxable income before credits. County income taxes still apply separately and can affect the total bill.
Oklahoma Cuts Its Top Income Tax Rate to 4.50% for 2026
Oklahoma replaces its six-rate schedule with a zero-rate band and three lower rates for 2026. Single filers with $80,000 or $160,000 of unchanged taxable income save about $226 or $426 before credits.
Ohio Adopts a 2.75% Income Tax Rate for 2026
Ohio eliminates its 3.125% top rate for nonbusiness income. At unchanged taxable income, the new schedule saves $10 at $80,000 and about $254 at $160,000 before credits. The calculation still includes a base tax.
North Carolina Cuts Its Income Tax Rate to 3.99% for 2026
North Carolina begins 2026 with a 3.99% income tax rate, down from 4.25%. The cut saves $208 on $80,000 of taxable income before credits. Updated payroll withholding also reflects the lower rate.
New York Cuts Its Five Lowest Income Tax Rates for 2026
New York lowers five income tax rates for 2026 while keeping the same bracket thresholds. The single-filer examples show savings of about $80 at $80,000 of taxable income and $160 at $160,000.
Montana Cuts Its Top Income Tax Rate to 5.65% for 2026
Montana expands its lower tax bracket while cutting the top rate to 5.65%. A single filer with $80,000 of taxable ordinary income saves about $398 before credits. The changes apply to the 2026 tax year.
Nebraska Cuts Its Top Income Tax Rate to 4.55% for 2026
Nebraska lowers both upper-bracket rates to 4.55% for 2026. A single filer with $80,000 of taxable income saves about $343 before credits under the new schedule. Another reduction to 3.99% follows in 2027.
Mississippi Cuts Its Income Tax Rate to 4.00% for 2026
Mississippi lowers its income tax rate to 4.00% while keeping the first $10,000 of taxable income untaxed. A single filer with $80,000 of taxable income saves $280 before credits. Further reductions are scheduled for 2027 through 2030.
Kentucky Cuts Its Income Tax Rate to 3.50% for 2026
Kentucky begins 2026 with a lower flat income tax rate. The cut saves $400 on $80,000 of taxable income before credits. Updated withholding guidance also brings the 3.50% rate into the calculation for employee paychecks.