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.
