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Indiana, whose state legislature is controlled by GOP lawmakers and whose governor, Eric Holcomb, is a Republican, will shave its income tax rate to 3% in 2025, down from 3.05% in 2024.
State income tax systems fall into three broad categories: fixed or flat income taxes, progressive income taxes and no income taxes. State Income Tax Rates for 2024-2025 Skip to main content
The new law will give Iowa the sixth-lowest income tax rate in the country among states that impose an income tax. Nine states have no income tax. Iowa's income tax rate is dropping to 3.8%.
Forty-three states impose a tax on the income of individuals, sometimes referred to as personal income tax. State income tax rates vary widely from state to state. States imposing an income tax on individuals tax all taxable income (as defined in the state) of residents. Such residents are allowed a credit for taxes paid to other states.
Arizona. Flat Income Tax Rate: 2.5% Standard Deduction (Single): $14,600 Standard Deduction (Couple): $29,200 Personal Exemption (Single): NA Personal Exemption (Couple): NA Personal Exemption ...
Iowa's income tax is already set to go to a 3.9% flat rate by 2026, thanks to a law Gov. Kim Reynolds signed in 2022, which is still phasing in. The state's top rate this year is 5.7% and will ...
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