SEVERAL STATES ANNOUNCE INCOME TAX RATE CHANGES FOR 2023
For 2023, many states have announced changes to their individual marginal tax rates, most being reductions. This includes a few that are changing from a tax table with multiple rates to one flat rate: Arizona 2.5% (top rate was 2.98%), Mississippi 5.0% (same as previous top rate), and Idaho 5.8% (top rate was 6.0%). Several others are lowering their top tax rates, including Indiana, Iowa, Kentucky, Missouri, Nebraska, and North Carolina. And a few others have announced updates as well, including Massachusetts’ voters approving a 4% surtax on taxable income over $1,000,000.
With these timely changes in relocation software programs, please keep in mind that many transferees in these states might have slightly lower gross-ups in 2023.