Nine States to Cut Individual Income Taxes in 2026 Check if Your State is Included

Nine U.S. states will reduce income taxes starting January 1, 2026, as part of efforts initiated during the pandemic. Georgia will lower its rate to 5.09%, Indiana to 2.95%, Kentucky to 3.5%, Mississippi to 4%, Montana’s top rate to 5.65%, Nebraska to 4.55%, North Carolina to 3.99%, Ohio to a flat 2.75%, and Oklahoma to 4.5%. Proponents argue these cuts enhance economic competitiveness, while critics warn of potential impacts on public services. As of October, nine states had no income tax at all.