State Individual Income Tax Rates and Brackets, 2026
Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
9 min readAll Content
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Testimony: Assessment Limits and Property Taxes in Nebraska
Assessment limits are not sound tax policy. While well-intended, with hopes of preventing owners from being “taxed out of their homes,” the tax shifts, lock-in effects, and housing supply issues created by assessment limits make housing affordability worse.
Here’s Why Corporate Taxes May Appear Lower After the OBBBA
Near-term corporate tax payments may fall, and financial statement data may appear unusual, but over time, revenues will stabilize, book-tax gaps will fade, and the US tax code will incentivize domestic investment.
8 min read
Three Global Tax Policy Ideas in Need of a Reality Check
Formulary apportionment, global tax harmonization, and broad tax increases on services all face design, implementation, and economic barriers. When designing tax systems, policymakers should focus on doing the basic things well and avoid harmful policies that could stunt growth.
7 min read
State Tax Trends to Watch in 2026
State lawmakers around the country have begun their legislative sessions, and many are considering tax reform. This piece highlights some of the areas on which they are likely to focus.
4 min read
Trump Tariffs Threaten to Offset Much of the “Big Beautiful Bill” Tax Cuts
The tariffs now in effect threaten to offset much of the GDP growth from the tax cuts, while falling short of paying for them.
3 min read
One Big Beautiful Bill Act Tax Policies: Details and Analysis
Our analysis of the major tax provisions included in the OBBBA finds it will increase long-run GDP by 0.7 percent. The major tax provisions will reduce federal tax revenue by nearly $5.2 trillion between 2025 and 2034, on a conventional basis.
12 min read
Top Personal Income Tax Rates in Europe, 2026
Denmark (55.9 percent), France (55.4 percent), and Austria (55 percent) levy the highest top personal income tax rates in Europe.
4 min read
New York Should Be Cautious About Governor’s Near-Sighted Budget
Although New York’s 2027 budget proposal avoids tax increases on income, sales, and property taxes, it is full of policy proposals that threaten the long-run integrity of the state’s finances and harm New York taxpayers.
5 min read
Trump Tariffs: Tracking the Economic Impact of the Trump Trade War
The Trump tariffs are the largest US tax increase as a percent of GDP since 1993 and amount to an average tax increase per US household of $1,500 in 2026.
48 min read
Evaluating Washington’s Proposed Millionaires’ Tax
Washington lawmakers are holding their first hearing on long-anticipated legislation that would create a new 9.9 percent tax on income over $1 million.
6 min read
The State Income Tax Divergence
Lawmakers in many states continue to pursue additional income tax relief, while their counterparts elsewhere pursue the opposite goal.
3 min read
The Federal Payroll Tax: A Primer
With changes to payroll taxes likely to be part of a toolkit for reform, both policymakers and the public would benefit from understanding how the payroll tax works, who pays it, and its impact on the economy.
21 min read
When Taxing AI, Don’t Reinvent the Wheel
AI technology has a wide range of potential economic outcomes. It would be a mistake to tailor tax policy to the extreme end of that range. Still, policymakers shouldn’t do nothing: they should instead make tax reforms that are sound regardless of which AI scenario emerges.
7 min read
Two Virginia Income Tax Proposals Would Make the State Less Affordable
Should both HB 979 and HB 378 pass, Virginia would have the nation’s highest top marginal rate on investment income.
8 min read
Even After Exemptions, More than Half of Food Products Continue to Face Trump Tariffs
The Trump tariffs will likely raise the cost of food for Americans, particularly for liqueurs and spirits, baked goods, coffee, fish, and beer.
4 min read
Nonresident Income Tax Filing and Withholding Laws by State, 2026
One area of the tax code in which extreme complexity and low compliance go hand-in-hand—and where reform is desperately needed—is in states’ nonresident individual income tax filing and withholding laws.
9 min read
The EU’s Questionable VAT Policy
The value-added tax (VAT) compliance gap—the additional VAT revenue that could be collected if all taxpayers, consumers, and businesses fully complied with VAT rules—continues to increase, reaching €128 billion in 2023.
8 min read
The Next Tax Reform Should Build on Sound Tax Policy and Simplify the Tax Code
The tax code is ripe for simplification, especially as complicated and targeted provisions expire in 2028.
4 min read
New CEA Report Dramatically Underestimates the Cost of Replacing State Income Taxes
While the CEA’s analysis of the benefits of reduced reliance on income taxes is sound, its revenue replacement estimates are not. The actual revenue replacement rate could be as high as 17.51 percent.
6 min read