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13 States Where Americans Will Pay Less in Taxes This Year

March 18, 2024

2 min Read

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%

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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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