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13 States Where Americans Will Pay Less in Taxes This Year
Written by
Gabrielle Olya
Edited by
Gary Dudak

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Several states have implemented tax laws that went into effect on January 1, 20024, including a number of states that have lowered individual income taxes. According to the Tax Foundation, this is in line with ongoing trends: “The past several years have seen a wave of significant tax reforms, including rate reductions and tax cuts, as states emerged from the pandemic with revenue surpluses and stared down inflation.”
See if your state is among the lucky ones that lowered taxes this year.
Arkansas
- 2023 personal income tax (top marginal rate): 4.9%
- 2024 personal income tax (top marginal rate): 4.4%
Georgia
- 2023 personal income tax (top marginal rate): 5.75%
- 2024 personal income tax (top marginal rate): 5.49%
Indiana
- 2023 personal income tax (top marginal rate): 3.15%
- 2024 personal income tax (top marginal rate): 3.05%
Iowa
- 2023 personal income tax (top marginal rate): 6%
- 2024 personal income tax (top marginal rate): 5.7%
Kentucky
- 2023 personal income tax (top marginal rate): 4.5%
- 2024 personal income tax (top marginal rate): 4%
Mississippi
- 2023 personal income tax (top marginal rate): 5%
- 2024 personal income tax (top marginal rate): 4.7%
Missouri
- 2023 personal income tax (top marginal rate): 4.95%
- 2024 personal income tax (top marginal rate): 4.8%
Montana
- 2023 personal income tax (top marginal rate): 6.75%
- 2024 personal income tax (top marginal rate): 5.9%
Nebraska
- 2023 personal income tax (top marginal rate): 6.64%
- 2024 personal income tax (top marginal rate): 5.84%
New Hampshire
- 2023 personal income tax (top marginal rate): 4%
- 2024 personal income tax (top marginal rate): 3%
Note: The New Hampshire rate change applies to tax on interest and dividend income only.
North Carolina
- 2023 personal income tax (top marginal rate): 4.75%
- 2024 personal income tax (top marginal rate): 4.5%
Ohio
- 2023 personal income tax (top marginal rate): 3.99%
- 2024 personal income tax (top marginal rate): 3.5%
South Carolina
- 2023 personal income tax (top marginal rate): 6.5%
- 2024 personal income tax (top marginal rate): 6.4%
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