Thirty-nine states started the new year with tax changes, according to the Tax Foundation. Among the states making changes, nine cut individual income taxes, three reduced corporate income taxes and two adopted new first-year expensing provisions.
The report noted that state tax changes generally take effect either at the start of the calendar year or at the beginning of the fiscal year, which is July 1 for most states. Rate changes for major taxes typically take effect Jan. 1
The changes taking place in 2025 indicate that the trend of significant tax reforms of recent years has not plateaued, the Tax Foundation said.
See the gallery for the nine states that reduced individual income taxes, effective Jan. 1.
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