2024 State Tax Landscape: What You Need to Know

Navigating the ever-changing world of state taxes can be daunting, but 2024 brings a wave of shifts you don't want to miss. From gas and grocery tax changes to income tax cuts and new EV fees, staying informed is crucial to optimize your finances. Let's dive into some key changes impacting your wallet:

Gas & Grocery Tax:

  • Oregon & Utah: Gas tax hikes (Oregon by 2 cents, Utah by 2 cents).
  • Pennsylvania: First-ever gas tax reduction in five years.
  • Kansas: Groceries tax-free until 2025, thanks to "Axe the Food Tax" bill.

Tax-Free Shopping:

  • Florida: Back-to-school tax holiday through January 15th.




Property Taxes:

  • Pennsylvania: Rent/property tax rebate increase from $650 to $1,000.
  • Texas: Homestead exemption doubled to $100,000.
  • Wisconsin: Personal property tax abolished.
  • Colorado: Property tax assessment rate reduction.


State Tax Credits:

  • Maine: Dependent exemption tax credit now refundable and adjusted for inflation.
  • Colorado, Connecticut & Massachusetts: Enhanced Earned Income Tax Credits (EITC).
  • Several states: Increased child and dependent tax credits (e.g., Colorado's $1,200 per child, Utah's $1,000 for children under 4).


State Income Tax:

  • Georgia: Flat tax of 5.49% adopted.
  • Iowa, Kentucky, North Carolina, Ohio, Arkansas, South Carolina & Mississippi: Reduced income tax rates.
  • Connecticut: First income tax cuts since the 1990s.
  • Alabama: Overtime pay exempt from state income tax (until 2025).
  • Missouri: Federal Social Security payments exempt from tax.
  • Montana: Two-tiered income tax system introduced.
  • Minnesota: Net investment income tax rules revamped.
  • New Hampshire: Phasing out interest and dividend income tax (by 2025).
  • California: Top income tax rate rises to 14.4%.


Other:

  • Hawaii: 70% tax on electronic cigarettes implemented.
  • Maine: Modified tobacco tax to limit use.
  • Kentucky: EV registration fee of $120 ($60 for hybrids) introduced.
  • Tennessee: EV registration fee doubled to $200 (to reach $274 by 2026).
  • Massachusetts & Montana: Same filing status requirement for state and federal returns.


Remember: This is just a snapshot of changes. Consult a tax professional or state resources for accurate guidance.


Not tax advice.