West Virginia‘s top tax rate is decreasing from 5.12 percent to 4.82 percent. Governor Jim Justice has expressed ambitions for even more substantial cuts, aiming for eventual elimination of personal income taxes.
Meanwhile, Iowa‘s new flat income tax rate of 3.8 percent, effective January 1, replaces the previous top rate of 5.7 percent. Governor Kim Reynolds has championed this change, citing the state’s surplus as evidence that taxpayers were being overcharged.
As the calendar flips to 2025, several U.S. states are rolling out reductions in individual income tax rates, offering potential financial relief to their residents. According to an analysis by the Tax Foundation, nine states are starting the year with lower income taxes.
As the only Democrat-led state among those implementing cuts, New Mexico is reducing tax rates for all income brackets, with significant relief for low- and middle-income earners. A married couple filing jointly will save approximately $303 annually under the new structure.
Mississippi is lowering its rate to 4.4 percent, down from 4.7 percent. Governor Tate Reeves is pushing for the eventual elimination of state income taxes, arguing that it would enhance Mississippi‘s competitiveness with states like Florida.
