It turns out incentives matter. Who knew? People in these states will be relieved, and people in higher-tax states will be incentivized to move when seeing which states will see cuts in marginal state income tax rates in 2024.
At least 12 states, a majority led by Republicans, will reduce taxes for residents in some form this year, according to the Tax Foundation, a nonpartisan group that lobbies for lower taxes.
Here is a closer look at where state taxes are being reduced.
The states are:
- Arkansas
- Connecticut
- Georgia
- Indiana
- Iowa
- Mississippi
- Montana
- Nebraska
- New Hampshire*
- North Carolina
- Ohio
- South Carolina
* – New Hampshire isn’t cutting marginal state income tax rates but is instead phasing out a tax on interest and dividend income.
Note that most of these states (Connecticut being a notable exception) are Republican-controlled states. This is a big deal, of course, for those tax refugees from…
