These Are The 5 States Lowering Income Taxes In 2022

There are some things we can’t get out of paying, no matter how hard we wish. Thankfully, just because it can often feel as though we have bills piling up doesn’t mean that we are completely unheard. Several states are looking for ways they can help to improve everyone’s lives in any way they can, even if it means bringing in less money throughout the year.

One of the ways that several states are looking to change is by reducing the amount we have to pay in taxes. Sounds like there must be a catch, right? Thankfully now, as these are the 5 states lowering income taxes in 2022, making things a little more affordable for the time being.

1. Georgia is planning on lowering income taxes and increasing the tax-exempt

A recently approved bill means people living in Georgia will soon benefit from lower income taxes, as the state is introducing a flat rate of 5.2% instead of any variables. The top income tax will sit at 5.75%, but this will only be for couples earning more than $10,000 or a single person bringing home more than $7,000. As if that wasn’t enough, Georgia also plans to increase the tax exemptions and eliminate several deductions.

2. Iowa isn’t just lowering income taxes in 2022

Things took a real turn in Iowa in March 2022, as the governor agreed to a plan that won’t only help now but it will help for the next few years. Iowa is one of the many states lowering income taxes in 2022 - and they will stay that way. A new bill means income taxes will remain at 3.9% from 2026 instead of the graduated tax rates the state uses at the moment, meaning some people can pay as much as 8.5%. Iowa will also be removing tax on any retirement income from 2023.

3. Mississippi is reducing income taxes by removing a tax bracket

While they might not be directly lowering income taxes in 2022, Mississippi is looking for a way to reduce the amount of taxes paid throughout the state. How? By removing an entire tax bracket. Right now, there is a 4% tax on earnings from $5,000 to $10,000, but this could soon be a thing of the past. The Clarion Ledger also reports that Mississippi plans to reduce a sales tax on groceries from 7% to 5% in July 2022.

4. New York could be about to benefit from a major tax relief

New York City has long been known as one of the most expensive cities in the US, but that doesn’t mean things are necessarily set to last across the state. To start, the governor has announced a $1 billion property-tax rebate that could give homeowners away from the Big Apple an average of $970 per home. As if that wasn’t enough, New York has also announced plans to accelerate the planned lowering of income taxes from 2025 to 2023 and from 6.33% to 5.5%.

5. Indiana could help save hundreds of dollars by lowering income taxes in 2022

According to the Indianapolis Star, Indiana residents earning $30,000 a year could soon save around $100 in income taxes thanks to a $1.1 billion tax cut package announced in 2022. This will see income taxes reduced from 3.23% down to 2.9%, a move that might not sound like much but could have huge positive effects for people across the state.

Taxes are something that can sneak up on the best of us. Now, it seems that some states are standing up for their residents and making things more financially beneficial than before, as these five states are lowering income taxes in 2022.