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Arkansas
Rollover From 529 Plan to Roth IRA Exemption from Personal Income Tax
Effective for tax years beginning January 1, 2024, Arkansas has amended the Brighter Future Fund Plan Act to update references to 26 U.S.C. §529 and 26 U.S.C. §529A as they existed on January 1, 2024. Furthermore, a qualifying rollover from a 529 plan, or a similar plan in another state, to a Roth IRA is exempt from Arkansas income tax. The rollover must meet the following criteria:
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the lifetime maximum a 529 beneficiary can roll over is $35,000;
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the 529 account must have existed for at least 15 years;
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no contributions or earnings from the last five years can be rolled over;
- the rollover must be paid in a direct trustee-to-trustee transfer to a Roth IRA maintained for the benefit of the designated beneficiary; and
- transfer is subject to annual Roth IRA contribution limits.
Colorado
Retail delivery fee rates for FY 2025-2026 - The total retail delivery fee for July 2025 to June 2026 is $0.28 (decreased from $0.29 for FY 2024-2025). The fee is comprised of six fees and is imposed on all deliveries by motor vehicle to a location in Colorado with at least one item of tangible personal property subject to state sales or use tax.
Georgia
Personal Income Tax Rate Reduction – Effective July 1, 2025, the state’s personal income tax rate for tax year 2025 will be reduced from 5.39% to 5.19% with a further reduction of 0.10% annually beginning on January 1, 2026, until the rate reaches 4.99%. The actual reduction will be subject to a 1-year delay for each year that certain revenue estimates and collections are not met.
One-time Tax Refund for Individual Taxpayers - Georgia taxpayers who have filed tax returns for both the 2023 and 2024 tax years are eligible for a one-time tax refund. The refund will automatically be credited once a qualified taxpayer files an individual income tax return for tax year 2024.
A qualified taxpayer is an individual taxpayer who filed an individual income tax return for both the 2023 and 2024 taxable years by the due date for filing the income tax return for the 2024 taxable year, including any extensions which have been granted. The following are not qualified: a nonresident alien individual; an estate or trust; an individual claimed as a dependent for federal or Georgia tax purposes for 2023, unless that individual had earned income for 2023. A prorated credit will be allowed for any taxable nonresident or part-year resident whose tax was prorated under the state’s tax code.
The refund will be the lesser of the taxpayer's 2023 reported individual tax liability, or $250 in the case of a single taxpayer or a married taxpayer filing a separate return, $500 in the case of a married couple filing a joint return, or $375 in the case of a head of household. The refund will not be considered taxable income for Georgia individual income tax purposes.
Property Tax, Ad Valorem, and SALT Tax Law Changes - The maximum local sales and use tax that may be imposed is 1%. Other changes include:
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a revision of the definition of estimated roll-back rate for ad valorem taxation purposes to include specific calculation methods for county, educational, and municipal tax purposes, applicable to taxable years beginning on or after January 1, 2025;
- an update to the form requirements for ad valorem property tax bills, including the millage rate exceeding the estimated roll-back rate, applicable to taxable years.
Indiana
Personal Income Tax Conditionally Decreased - On April 16, 2025, Indiana Governor Mike Braun signed legislation lowering the state's individual adjusted gross income tax rate beginning in tax year 2030, dependent on meeting a calculated threshold of state revenue growth in specified fiscal years.
Under the legislation, in each even-numbered fiscal year starting FY 2028 and ending FY 2040, the rate will be reduced if the revenue collections calculated for the four prior fiscal years, and the forecasted revenue growth in the fiscal year ending in the following calendar year, are at least 3.5% above the revenue collections for the prior fiscal year.
Under this calculation, the tax rate would be 2.85% for tax years 2030 and 2031, 2.8% for tax years 2032 and 2033, 2.75% for tax years 2034 and 2035, 2.7% for tax years 2036 and 2037, 2.65% for tax years 2038 and 2039, 2.6% for tax years 2040 and 2041, and 2.55% for tax year 2042 and after.
Kansas
Single Sales Factor for Multistate Companies - Kansas will require multistate corporations to switch from the three-factor apportionment method for income to a single-sales-factor apportionment method and to market-based sourcing of receipts under a bill signed by the governor.
Income Tax Exemption for Unborn Children - On April 10, 2025, the Kansas Legislature voted to override Governor Laura Kelly's veto, and enacted legislation providing for an income tax exemption for unborn and stillborn children. In addition to personal income tax exemptions, for tax year 2025 and all years thereafter, an unborn child will be recognized as a dependent and allowed a personal exemption of $2,320.
For live births, the unborn child personal exemption will be an additional exemption for any qualifying dependent of the taxpayer who was born in the taxable year.
For an unborn child who does not result in a live birth, known as a stillbirth, and for whom a certificate of stillbirth is filed pursuant to law, a personal exemption may be allowed by the taxpayer who is a parent for the taxable year of the issuance of the certificate.
Kentucky
On March 27, 2025, legislation was enacted without Kentucky Governor Andy Beshear's signature that:
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revises the Internal Revenue Code's (IRC) conformity date to December 31, 2024;
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amends the individual income tax rate reduction provisions;
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extends the Metropolitan College program credit;
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amends the Selling Farmer Tax Credit;
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establishes a new entertainment events' sales tax incentive;
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updates the definition of real property for ad valorem taxes;
- provides for the assessment of distilled spirits stored or aging in barrels in revenue bond-financed warehouses; and
- adds a cannabis-infused tax to the alcoholic beverages' provisions.
Mississippi
Individual Income Tax Phase-Out - The Build-Up Mississippi Act phases out the state’s individual income tax. The bill cuts the individual income tax rate to 3% by 2030, with future annual decreases until the rate falls to 0% and the tax is eliminated. The bill also decreases the sales tax on groceries from 7% to 5%, effective July 1, 2025. Gasoline taxes will be increased through tax year 2027.
New Mexico
Tax Code Updates - New Mexico Governor Michelle Lujan Grisham approved a bill on April 9, 2025, that clarifies and streamlines the state's tax code. In addition to new tax return due dates for personal and corporate income tax returns and employer withholding returns, the act adds electronic payment requirements for most business-related taxes as well as oil and gas taxes, sets a new threshold for tax reporting, allows the Taxation and Revenue Department (TRD) to enter closing agreements without the attorney general's approval, and clarifies when tax refunds based on partnership adjustments are allowed. The act also moves the back-to school tax holiday to an earlier weekend. Finally, other amendments streamline statutory language, including tax credit language, or bring the tax code section into alignment with TRD practices.
Utah
On March 26, 2025, Utah Governor Spencer J. Cox signed legislation that reduces the corporate franchise and income tax rates and the individual income tax rate, enacts a nonrefundable tax credit for employer-provided childcare, and expands the nonrefundable child tax credit.
Washington
Unclaimed Property Reporting Procedures - Washington has amended provisions relating to unclaimed property administrative procedures and abandonment periods. Beginning January 1, 2026, the aggregate reporting amount is lowered to $5 and the due diligence notification amount is decreased to $50 for holders of unclaimed property. Also effective January 1, 2026, the due date for the annual report filed with the department is changed to October 31.
Other changes include: clarification of the abandonment period for municipal bonds held by a government entity, changing the abandonment period for employee reimbursements to three years, and changing the abandonment period for excess proceeds from the sale of self-service storage facility property to one year.
West Virginia
No More Required Accelerated Payments - Effective April 7, 2025, sales and use taxpayers and personal income withholding taxpayers who have more than $100,000 in average monthly taxes will no longer have to pay taxes early (i.e., by June 20 or June 23, respectively).
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