Ready for an income tax rate cut, Hoosiers?
The tax cut isn’t coming from the federal government, but a handful of states. Eight states, including Indiana, lowered their income tax rate, effective Jan. 1, according to the nonprofit thinktank Tax Foundation.
By putting more money in their residents’ pockets, states hope to spur economic growth and attract more workers, businesses and investments, experts said.
Indiana’s drop isn’t very much — the rate falls from 3% to 2.95% — but state legislation also means it could continue to drop in 0.05% increments.
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What states are cutting income tax rates?
Tax rates are falling in these states:USA TODAY Shopping: Shop sales in tech, home, fashion, beauty & more curated by our editors.
Medora Lee is a money, markets and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
This article originally appeared on Indianapolis Star: Indiana is one of 8 states to lower its income tax rates — but not by much
Reporting by Medora Lee and Jenny Porter Tilley, USA TODAY NETWORK / Indianapolis Star
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