Taxpayers across at least 38 states will see significant changes in state taxes in 2023 with 11 states trimming their income tax levies beginning Jan. 1. (Justin Sullivan/Getty Images)
With state legislatures entering their third sessions since the 2020 pandemic pumped trillions in federal recovery and stimulus assistance into state and local government coffers, tax reform across a range of levies is among front-burner priorities for lawmakers in 2023, according to The Epoch Times.
During 2022 sessions, Washington, D.C.-based Tax Foundation reports at least 38 states adopted “noteworthy tax changes” with most going into effect on Jan. 1, including trims in personal income tax rates in 11 states and flat income tax structures being implemented in three states, Arizona, Idaho and Mississippi on New Year’s Day.
Here is a round-up of “noteworthy tax changes” that go into effect on Jan. 1 provided by analysts at the Tax Foundation, the Council On State Taxation and the Institute on Taxation and Economic Policy:
* ARIZONA: A flat personal income tax rate of 2.5% will replace Arizona’s tiered, or progressive, income tax structure that had a top rate of 4.5%.
* IDAHO: Under 2022’s House Bill 1, Idaho will move to a flat personal income tax rate of 5.8%, replacing a progressive tax structure with a top assessment rate of 6%, on Jan. 3.
