New tax laws and rate changes will happen in 34 states for the new year. Some rates will go up and some will go down. Other tax changes will be brand new taxes implemented.
Tax Foundation did a nice job listing all the upcoming changes. I will list some of the changes below, but highly suggest you visit their write up here to see if any changes in your state is happening.
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Thirty-four states have major tax changes taking effect on January 1, 2020.
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Arkansas, Tennessee, and Massachusetts will each see reductions in their individual income tax rates.
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Five states (Iowa, Kansas, Maine, North Carolina, and Ohio) will see notable changes to their individual income tax bases.
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Corporate income, capital stock, franchise, or similar taxes on businesses or financial institutions will decrease or be eliminated in six states (Connecticut, Florida, Illinois, Indiana, Missouri, and Mississippi) but will increase in two states (New Jersey and Washington).
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Oregon will implement a new Corporate Activity Tax (CAT), which is a modified gross receipts tax (GRT).
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Florida is the lone state with a general sales tax rate change (a reduction).
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Five states will see changes to their estate taxes. Connecticut, Minnesota, Vermont, and New York will see increases in their estate tax exemptions (taxpayer-friendly provisions), while Hawaii’s estate tax will become more burdensome.
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Two states (Illinois and Louisiana) will implement new excise taxes on cannabis products.
