Market expert DR Barton discusses the possibility of a soft landing in 2024 and what employment and financial trends support his prediction.
Some states are lower income tax This year, even more money will be pumped into the pockets of many Americans as they continue to battle stubborn inflation.
At least 12 Republican-controlled states plan to cut some form of resident tax this year, according to the Tax Foundation, a nonpartisan group that advocates for tax cuts.
Here's a closer look at where state taxes are cut.
New IRS tax rules take effect in 2024, so next year's pay could be even higher
arkansas
As of early January, Arkansas' top personal income tax rate was 4.4%, down from 4.9% a year ago.
This change accelerates tax rate reductions that were originally scheduled to begin in the 2025 tax year.
connecticut
Connecticut will provide some relief to taxpayers this year, reducing the 3% personal income tax bracket to 2% and the 5% bracket to 4.5%. However, this relief does not apply to individuals with incomes of $150,000 or more, or couples with incomes of $300,000 or more.
All other interest rates, including the maximum marginal interest rate, remain unchanged.
georgia
The photo shows the skyline of Atlanta, Georgia. (image/image)
Georgia would join several states that have adopted or are considering flat-rate tax rates. The Peach State will eliminate six individual income tax rates and introduce a flat rate of 5.49% under a bill signed into law by Republican Gov. Brian Kemp in 2022.
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Indiana
Indiana will accelerate previously enacted tax cuts in 2024, reducing the personal income tax rate from 3.15% to 3.05%.
iowa
Iowa is on track to reach a flat tax rate of 3.9% in 2026 as part of a $1.9 billion tax cut signed by Republican Gov. Kim Reynolds in 2022.
The top marginal tax rate will be lowered to 5.7% in 2024.
Pedestrians cross the street near the Iowa State Capitol on February 3, 2020 in Des Moines, Iowa. (Photographer: Al Drago/Bloomberg via Getty Images / Getty Images)
mississippi
Mississippi residents with incomes over $10,000 will pay a single tax rate of 4.7% this year, down from an initial rate of 5% in 2023, according to the Tax Foundation.
Ultimately, the tax rate is scheduled to drop to 4.4% in 2025 and 4% in 2026.
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montana
Montana approved major tax reform in 2021, consolidating seven tax brackets into two. Starting in 2024, the top marginal interest rate for Montana residents will drop from 6.75% a year ago to 5.9% in 2024. For the 2024 tax year, the lower tax rate will drop to 4.7%.
The higher tax rate applies to income above $20,500 for single taxpayers and $41,000 for married couples filing jointly.
nebraska
Nebraska will lower its top marginal tax rate from 7.25% to 5.84% in 2024 for all incomes over $100,000.
The state aims to lower the top tax rate to 3.99% by 2027.
Form 1040 and W-2 from the Internal Revenue Service. (image/image)
new hampshire
Unlike other states that have reduced income taxes, New Hampshire is phasing out taxes on interest and dividend income.
The tax rate will be reduced from 4% last year to 3% in 2024, and will be abolished in 2025.
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north carolina
North Carolina's flat income tax rate will drop to 4.5% in 2024 from 4.75% the previous year.
Ohio
In legislation passed last year, Ohio combined the top two marginal tax rates on personal income into one, setting the rate at 3.5% in 2024.
south carolina
South Carolina plans to lower its top personal income tax rate from 6.5% to 6.4% in 2024, and the Palmetto State aims to further reduce its tax rate to 6%.
