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Alabama
Effective October 1, 2025, Alabama has increased the exemption for business personal property from state property tax to $100,000 in market value, up from the previous $40,000.
Colorado
On May 16, 2025, Colorado Governor Jared Polis signed a bill that adjusts various income tax credits and exemptions and makes other tax-related changes.
Georgia
IRC Conformity Updated - Georgia has updated its conformity date to the federal Internal Revenue Code (IRC). This means that for taxable years starting on or after January 1, 2024, Georgia will follow all federal tax laws enacted by January 1, 2025. If a federal tax law is enacted but not yet effective, it will become effective for Georgia taxes at the same time it becomes effective for federal taxes.
New: Catastrophic Savings Accounts - Georgia now allows taxpayers to create catastrophe savings account (CSA) to help cover expenses from natural disasters. Starting January 1, 2026, Georgia residents can deduct contributions to a CSA from their taxable income, along with earned interest. The contribution limits depend on the homeowner's insurance deductible:
- Deductibles of $1,000 or less: up to $2,000 in contributions
- Higher deductibles: up to twice the deductible or $25,000, whichever is less
- Self-insured homeowners: up to $250,000, not exceeding the home's fair market value
Distributions from a CSA are taxable unless used for qualified catastrophe expenses. If the expenses during the taxable year are equal to or greater than the distributions, no amount will be taxable.
Indiana
Effective May 1, 2025, Indiana has extended the employer childcare expenditure tax credit through July 1, 2027. This credit was originally set to expire on July 1, 2025.
Kansas
On April 24, 2025, Kansas Governor Laura Kelly signed a comprehensive tax bill that lowers the corporate income tax rate based on excess tax revenues from the previous year. It also introduces a new formula for business income apportionment, increases personal exemptions for certain individual taxpayers, and exempts specific properties from all property and ad valorem taxes.
At the end of fiscal year 2028, the budget director will certify the amount of corporate income tax revenues that exceed the previous year's receipts. This certification will be sent to the Secretary of Revenue, who will calculate a reduction in the corporate income tax rate to the nearest 0.1%. The new tax rates will be published by October 1, 2028, and will take effect for all tax years starting after December 31, 2028.
Michigan
The Michigan Department of Treasury announced that the income tax rate for individuals and fiduciaries for the 2025 tax year is 4.25%. This rate may be subject to a reduction if the percentage increase in general fund revenue from the previous fiscal year exceeds the inflation rate. However, no rate reduction is required for 2025, so the rate remains at 4.25%.
New York
On May 9, 2025, New York Governor Kathy Hochul signed a bill implementing the state's fiscal plan for 2025-2026. The law includes changes to payroll and personal income tax rates, extends several current tax credit programs, and introduces new tax credits for the film and semiconductor manufacturing industries.
Oklahoma
Oklahoma will reduce individual income taxes starting in tax year 2026 through rate reductions and consolidation of some tax brackets. The new tax rates are:
- Single individuals and married individuals filing separately:
- 0% tax on the first $3,750
- 2.5% tax on the next $1,150
- 3.5% tax on the next $2,300
- 4.5% tax on the remainder
- Married individuals filing jointly, surviving spouses, and heads of household:
- 0% tax on the first $7,500
- 2.5% tax on the next $2,300
- 3.5% tax on the next $4,600
- 4.5% tax on the remainder
Currently, Oklahoma has six tax brackets with rates ranging from 0.25% to 4.75%.
Oklahoma also has a trigger for additional rate cuts based on total collections. If the comparison year total collections exceed the base year total collections plus the income tax rate reduction threshold, the tax rates across all brackets will be reduced by 0.25% until the rate equals 0%. These reductions will take effect on January 1 following the final certification by the State Board of Equalization in February each year. Further rate cuts are paused if the state declares a revenue failure.
Washington
Additional Excise Tax on Capital Gains – The state has imposed an additional excise tax on the sale or exchange of long-term capital assets. This tax is 2.9% on the portion of a taxpayer's Washington capital gains exceeding $1 million. The existing Washington capital gains excise tax of 7% remains in effect. This applies to taxes imposed in 2025 for collection in 2026.
New Local Sales Tax Authorized - Washington has authorized qualified cities and counties to impose a new local 0.1% sales and use tax for criminal justice purposes. This tax will be effective starting July 27, 2025.
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