As congressional sessions end in many states, it's clear that 2023 will be the third year in a row with big changes to and relief from state taxes. Since 2021, 24 states have cut individual income tax rates (including 22 cuts to the top marginal rates), 13 states have cut corporate income tax rates, two states have cut sales tax rates, and many more have made structural improvements like getting rid of capital stock taxes, making full expensing permanent, raising the filing and withholding thresholds for nonresidents, improving how businesses treat tangible property, getting rid of throwback and throwout rules, and more.
As congressional sessions end in many states, it's clear that 2023 will be the third year in a row with big changes to and relief from state taxes. Since 2021, 24 states have cut individual income tax rates (including 22 cuts to the top marginal rates), 13 states have cut corporate income tax rates, two states have cut sales tax rates, and many more have made structural improvements like getting rid of capital stock taxes, making full expensing permanent, raising the filing and withholding thresholds for nonresidents, improving how businesses treat tangible property, getting rid of throwback and throwout rules, and more.
