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5 States Lowering Taxes This Year — and 2 Raising Them

5 States Lowering Taxes This Year and 2 Raising Them State personal income tax rates, brackets and deductions just changed in these places. Syda Productions / Shutterstock.com Taxes are a hot topic in 2021. The new president has promised to raise taxes on the wealthy, and the Tax Foundation reports 26 states and the District of Columbia have made noteworthy changes to their tax codes. In some states such as Arkansas and Iowa corporate tax rates are falling. In Connecticut, Vermont and the District of Columbia, estate tax rules are changing. However, most people focus on personal income taxes. In two states, income taxes will rise in 2021. But in five others, rates will fall.

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