These 9 states are cutting income taxes on Jan. 1. Here's where taxpayers will get a break.
CBSN
Some Americans could get a break on their state income taxes this year, with nine states kicking off 2025 with a reduction in their individual income tax rates, according to an analysis from the Tax Foundation, a think tank that focuses on taxes.
The changes are part of a recent push to cut taxes at the state level that started during the pandemic when many states found themselves flush with tax revenue. But the left-leaning Institute on Taxation and Economic Policy (ITEP) has termed the trend an "anti-tax playbook" that could eventually crimp public services.
Lawmakers typically argue that lowering taxes can help make their states more competitive, helping to draw businesses and new residents within their borders. Seven of the states that are lowering their individual income taxes in 2025 have legislatures that are controlled by Republicans, as well as Republican governors.
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