We have updated our State Individual Income Tax Rates table for 2009. Some notable changes from 2008: Maryland added two rates, including a 6.25% rate on income over $1,000,000. Ohio reduced all nine of its income tax rates for 2009. Tax reform measures enacted in Ohio in 2005 included a 21 percent reduction for all income tax rates, phased in over a five-year period from 2005 to 2009. 2009’s rates represent the fully reduced levels. Louisiana increased the width of its middle income tax bracket, which will have the effect of lowering taxes for taxpayers making over $25,000. Several States make annual inflation adjustments to their income tax brackets: Arkansas, California, Idaho, Iowa, Maine, Minnesota, Montana, North Dakota, Oregon, Rhode Island, South Carolina, Vermont, and Wisconsin. We will also be updating our 2009 State Corporate Income Tax Rates table within the next few days.
