5 States with Income Tax Cuts in 2024

In this article, we will look at 5 states with income tax cuts in 2024. If you want to read our detailed analysis, head straight to 16 States with Income Tax Cuts in 2024.

5. Indiana

Personal Income Tax in 2024: 3.05%

Personal Income Tax in 2023: 3.15%

Indiana has reduced its personal income tax rate to 3.05% and House Bill 1001 prescribes further rate reductions to 3% in 2025, 2.95% in 2026, and 2.9% in 2027 and beyond. Indiana is placed fifth among the states with income tax cuts in 2024.  

4. New Hampshire

Personal Income Tax in 2024: 3%

Personal Income Tax in 2023: 4%

New Hampshire has reduced its personal income tax rate to 3%, down from 4%. The state is set to eliminate tax on interest and dividends income in 2025. New Hampshire is one of the states with income tax cuts in 2024.  

3. Iowa

Corporate Income Tax in 2024: 7.10%

Corporate Income Tax in 2023: 8.40%

Personal Income Tax in 2024: 5.70%

Personal Income Tax in 2023: 6%

Iowa has a corporate income tax rate of 5.5% on income under $100,000 and 7.10% on income above $100,000. For individual taxpayers, the personal income tax rate is lowered to 5.70%, which is planned to reduce to 3.9% by 2026. Ranked third on our list, Iowa is one of the states with income tax cuts in 2024.  

2. Nebraska

Corporate Income Tax in 2024: 5.84%

Corporate Income Tax in 2023: 7.25%

Personal Income Tax in 2024: 5.84%

Personal Income Tax in 2023: 6.64%

Nebraska has reduced its flat corporate income tax rate to 5.84% on income over $100,000 and is set to be lowered to 4.99% by 2027. The personal income tax rate is also set at 5.84%, down from 6.64%. The state plans to reduce the top rate of personal income tax to 3.99% by 2027. Nebraska is ranked among the states with income tax cuts in 2024. 

1. Arkansas

Corporate Income Tax in 2024: 4.80%

Corporate Income Tax in 2023: 5.30%

Personal Income Tax in 2024: 4.40%

Personal Income Tax in 2023: 4.90%

Arkansas reduced the top marginal corporate tax rate to 5.30% on January 1, 2023, which has been reduced to 4.80% on January 1, 2024. The state’s personal income tax is set at 4.40%, down from 4.90%. Arkansas is placed first among the states with income tax cuts in 2024. 

You can also take a look at 11 High Growth Low Debt Stocks to Buy and 15 Best Growth Stocks to Buy Under $25.