After stimulus checks, taxes will be the most discussed topic in 2021. The United States’ new president said countless times that he would raise the taxes on the wealthy. In fact, the Tax Foundation says that 26 states, plus the District of Columbia, have already made significant changes to their tax codes.
In several U.S. states like Iowa and Arkansas, corporate tax rates are dropping, while in the District of Columbia, Connecticut, and Vermont, estate tax rules are seeing some rules. Smokers who live in Oregon, Colorado, or Georgia will also be affected. The vaping taxes in these states will most likely skyrocket.
While the types of taxes we’ve mentioned above are concerning, people tend to focus more on their personal income. So, in which states income taxes are about to rise and in which will fall? Well, two will see a rise this year, and five will probably fall.
Let’s see how big the impact will be on your 2022 tax return if you’re living in one of these seven U.S. states!