8 states, including Kentucky, drop income tax rates in 2026

To help readers see where they could stand under the current proposal, The Post and Courier has developed an interactive calculator that compares the plan to current income tax rules, in online versions of this article. Average bills would be lower in other income ranges, but there would be winners and losers at every income level depending on taxpayers’ particular circumstances. If, instead, the gain came from selling Connecticut municipal bonds, that income would generally be subtracted from your Connecticut return and not taxed by the state. These adjustments ensure that income exempt under Connecticut law—particularly in-state bond income—is not taxed at the state level. Electronically paying your taxes is easy, accurate, safe, and secure.

• Some states have different brackets for married and single tax filers.
• If no tax is due, DRS may impose a $50 penalty for the late filing of any return or report that is required by law to be filed.
• But tax savings are only part of the story, since housing costs, sales taxes, job markets, and overall quality of life can make a big difference in how far that extra money actually goes.
• You can also use our New York property tax calculator to find out what you would pay in property taxes in New York.
• Raising marginal tax rates in Virginia to 10% or 13.8% would harm Virginia by reducing the migration of prosperous and productive people into Virginia from Maryland.
• If passed into law, this would be the fourth round of refunds over Kemp’s tenure as governor.
• You may be eligible for a six-month extension of time to pay the tax due if you can show that paying the tax by the due date will cause undue hardship.

Georgia Income Tax Brackets

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• While the federal government applies a uniform tax system nationwide, state income taxes can vary dramatically — from 0% in states like Texas and Florida to over 13% in California.
• These aren’t the only differences among the states when it comes to income taxes, either.
• The DE 2088 will be mailed to you in December, with a mailing date of December 31.
• Note that all five New York City counties (New York, Kings, Queens, Bronx and Richmond) are subject to the full city tax rate of 8.875%, the highest total rate in the state.
• M​embers of the Kentucky National Guard may claim a tax credit of $20; military reserve members are not eligible.

NYC tax rates for those married filing jointly and surviving spouses

It would be far higher than the top tax rates in the region around Virginia, such as the 3.99% tax rate in North Carolina, the 4.82% rate in West Virginia, and the zero percent tax rate in Tennessee, which has no state income tax. New York state has nine income tax rates, ranging from 4% to 10.9%. Tax credits and deductions, filing status and residency status can influence what you pay. Capital gains taxes are levied on profits from the sale of assets like stocks, mutual funds, and real estate. The rate at which these gains are taxed depends on your taxable income and how long you’ve held the asset. But keep in mind that capital gains tax rates are generally income tax rates by state lower than the tax rates for ordinary income, like wages.

New York Capital Gains Tax

There are three types of residency statuses when it comes to New York state tax. Filing using a different name than we have on record can slow down processing and even delay your refund. If you’ve legally changed your name, update it with us before filing using our free online tax portal, MyDORWAY. The SCDOR wants South Carolinians to know what​​ common mistakes to avoid when filing taxes. 2025 LEGISLATIVE UPDATE – A list of significant changes in tax and regulatory laws and regulations enacted during the 2025 legislative session is available from the SCDOR Policy Division. Arizona has shifted to a flat tax model in 2025, Foreign Currency Translation simplifying its tax structure.

• If you do not pay the tax when due, you will owe interest at 1% per month or fraction of a month until the tax is paid in full.
• Commonwealth of Pennsylvania government websites and email systems use “pennsylvania.gov” or “pa.gov” at the end of the address.
• Lodging values for maritime employees apply only when the facilities meet specific minimum standards.
• Their significance in public policy is further enhanced by individuals being actively responsible for filing their income taxes, in contrast to the indirect payment of sales and excise taxes.
• A state Budget and Finance Authority analysis found that 38.7 percent of taxpayers would pay less, 26.7 percent would pay more, and the rest would see no change.
• The current legislation would also create winners and losers across all income levels, with the largest average tax reductions going to those with the highest incomes.
• Employees can no longer increase or decrease the amount withheld from their paychecks by claiming allowances that are not consistent with their specific filing situation.

Atlanta News First and Atlanta News First+ provide you with the latest news, headlines and insights as Georgia continues its role at the forefront of the nation’s political scene. Download our Atlanta News First app for the latest political news and information. Kemp was elected governor in 2018 in a closer-than-expected contest against Democrat Stacey Abrams in a race that briefly propelled Abrams to a national profile. But four years later, Kemp won reelection, again defeating Abrams by a larger margin than in 2018. If lawmakers pass Kemp’s budget, all state employees – from teachers to public safety officers – will receive a $2,000 bonus, double what was approved last year. The committee also called for increasing the cuts to higher income levels in the future, with abolishment of the gross vs net $16 billion revenue stream by 2032.

• “Our plan fulfills my promise to the voters of this state in a responsible way.
• While both are deducted from employee paychecks, they serve different purposes when running payroll.
• If an extension of time to pay is granted and you pay all the tax due in full by the end of the extension period, a penalty will not be imposed.
• Right now, more people move from Maryland to Virginia than from Virginia to Maryland, resulting a net migration of thousands of people from Maryland to Virginia in recent years.
• The income tax legisltion would cause more lower-income people to owe South Carolina income tax.

Most states (like California and New York) treat capital gains as ordinary income, meaning you pay your standard state income tax rate on those profits. If you file a 2026 Connecticut income tax return on or before March 1, 2027, and pay in full the amount computed on the return as payable on or before that date, you will not be charged interest for underpayment of estimated tax. If you have already filed your current year’s individual income tax return and need to make a payment, you must also include the 511-V voucher with your payment. South Dakota has no income tax, but it raises most of its revenue through sales and excise taxes, which account for 3.86% of its 8.4% total tax burden.

When are state income tax returns due?

In this comprehensive state-by-state guide to US income tax rates 2025, we break down the current tax rates for each state so you can plan accordingly. States with maximum income tax rates of at least 5% but less than 6% are Rhode Island, New Mexico, Idaho, Georgia, Maryland, Virginia, Kansas, Alabama, and Mississippi. Not counting the nine states with no income tax, the states with the lowest state income tax rates are Arizona, Indiana, Louisiana, and North Dakota. The states with the highest income tax rates are California, Hawaii, and New York. States with flat tax systems apply the same tax rate to all taxable income, regardless of how much a person earns.

Connecticut Income Tax Brackets

You can also use our New York property tax calculator to find out what you would pay in property taxes in New York. A tax credit reduces your income taxes by the full amount of the credit. So if you owe $5,000 in taxes and are eligible for a tax credit of $500, you only need to pay $4,500 total. There are numerous additional tax credits offered in the state of New York, many of which primarily benefit low income households.