There are five basic legal forms of business structures found in the United States: C corporations, S corporations, sole proprietorships, partnerships, and Limited Liability Companies (LLCs). In order to understand...
- Monday Map: Adjustment of State Income Tax Brackets for I...
Monday Map: Adjustment of State Income Tax Brackets for Inflation
Today's Monday Map touches on a lesser known, but still important, aspect of state tax policy - it shows which states index their income tax brackets for inflation.
Indexation of tax brackets is important for stable tax policy - otherwise, as nominal incomes rise, more and more taxpayers end up in higher tax brackets and pay higher rates, even if the real value of their income remains flat. The federal income tax code has had most of its parameters indexed for inflation since 1986, yet many states lag behind.
Click on the map to enlarge it.
View previous Monday Maps here.
Subscribe to the Tax Foundation Newsletter
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.