Income tax rates are declining, if you live in one of these states

Ready to think about taxes this year? As two weeks have passed until April 15, you will be forgiven because of his tired now, but based on where you live, I got a little break this year: low state income taxes.

Tax rates differ from one state to another – unlike Federal tax rates – But it always includes collecting part of your income from each salary. The percentage that has been collected can vary depending on the place where you live How much do you do?. The highest rate in the United States is 13.3 % that was collected in California from those who get more than a million dollars annually, while states including Alaska, Florida and Nevada do not collect income tax at all.

If you live in one of nine specific states, you will likely see your salary increasing at home slightly, after lawmakers in those states reduce their income tax rates as of January 1. Some of these cuts are minimal, while others are more important.

Read all the details about the countries that reduced the income tax rates and their amount. To learn more about the tax season, discover If you are eligible to claim a child credit for children And see What the future may keep the credit and its value.

What countries have reduced income tax rates?

As of January 1, income tax discounts entered into force in the following nine states:

• Indiana
• yeah
• Louisiana
• Mississippi
• Missouri
• Nebraska
• New Mexico
• North Carolina state
• Virginia Western

How much income tax rates have decreased in these states?

Indiana One of the minimum cuts, with a decrease in income tax rate from 3.05 % to 3 % in 2025.

yeah The flat income tax rate decreases by 3.8 % in 2025, a decrease of 5.7 % last year.

Louisiana It is also transmitted to a fixed rate of the gradual income tax system, with a fixed rate of 3 % this year, a decrease in a rate of 4.25 % in 2024. It will lead to the largest in the state, from 30,000-40,000 dollars, only 338 dollars in income taxes.

Mississippi The tax rate witnessed a decrease in the minimum of 2025, decreasing to 4.4 % from 4.7 % last year. The officials there also put a goal to completely cancel income taxes in the state.

Missouri It is another country with a smaller reduction this year, to 4.7 % of 4.8 %.

Nebraska The income tax rate was reduced to 5.2 %, a decrease from 5.84 % last year.

New Mexico You will retain the gradual income tax rate, as two of the brackets of the six income witnessed a decrease in 2025. Those who achieve less than $ 5500 annually witnessed their prices to 1.5 % from 1.7 %, while those who achieve between 16500 dollars and $ 33,500 have seen their reduction to 4.3 % from 4.7 %.

North Carolina state The rate decreased to 4.5 %, a decrease from 4.75 % last year. The state also plans to reduce the rate to 3.99 % in 2026.

in Virginia WesternResidents can expect 4 % lower payment in total income taxes in 2025, although not reporting specific prices. Another country where legislators also put forward the goal of getting rid of income taxes in the end.

For more, discover If you are eligible for savings credit.