Nebraska recently became the latest state to enact serious tax cuts (without the benefit of a booming oil and gas industry) The plan reduces the top individual and business income tax rates to 3.99% by tax year 2027 and entirely eliminates state taxes on Social Security benefits a year early in 2024.
Several other states have enacted personal income tax reductions that took effect in 2023: Arizona, Idaho, Indiana, Iowa, Kentucky, Mississippi, Missouri, Nebraska, New York and North Carolina.
Meanwhile, New Mexico which has become even more dependent on oil and gas in recent years has NOT cut personal income taxes. Instead, the State remains dedicated to growing spending and holding money in reserve for future spending. The following charts are from the Legislative Finance Committee’s recent report.