Several States Cut Business And Individual Taxes As Of Jan. 1, 2019
The tax filing season is rapidly approaching and while the U.S. government is mired in a shutdown that could affect federal tax return processing (click here to read how), several U.S. states already have implemented tax policy changes of their own.
According to the nonpartisan, nonprofit Tax Foundation state legislatures were somewhat quieter on the tax front last year, but at least three states, Idaho, Utah, and Vermont, all reduced income taxes in 2018 and those changes took effect at the beginning of the new year. Legislators in Arkansas also provided relief for low-income residents. (As a reminder, while C corporations pay corporate taxes at the state and federal level, pass-through entities, including S corporations, limited liability companies, partnerships, and sole proprietorships, are subject to a state’s individual incomes tax rates.)
Georgia cut taxes for both businesses and individuals – at least until 2025 when the rate cuts expire. North Carolina did the same. Missouri last year passed a large reform package that will affect both companies and individuals while New Hampshire legislators cut their state’s business profits tax and its business enterprise tax.
Click here to read the Tax Foundation’s full review of the state tax policy changes that took place on Jan. 1, 2019, and for a look at what to expect during this year’s legislative sessions.