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Following the passage of the Tax Cuts and Jobs Act, the debate on tax reform has shifted from Washington, D.C., to all fifty states. States incorporate provisions of the federal tax codes into their own codes in varying degrees, meaning that federal tax reform has implications for state revenue.
Because the base-broadening provisions of the new federal tax law often flow through to states, while the corresponding rate reductions do not, most states will experience a revenue increase from federal tax reform – although several states could see decreases, largely due to the new federal pass-through provisions.
States are busy working to quantify the impact to their state budgets from the federal tax changes to ensure they have all the necessary information about their policy choices.
Below we have catalogued each state’s projected revenue impact of federal tax reform. We will update this page as new estimates are released.
Arizona*
Increase in revenue of $236 million in fiscal year 2019.
Colorado
Increase in revenue of $196.5 million in fiscal year 2018-2019.
Georgia*
Increase in revenue of $5.2 billion over five years.
Idaho
Increase in revenue of $97.4 million in fiscal year 2019.
Indiana
Increase in revenue of $129 million in fiscal year 2019.
Iowa
Increase in revenue of $188.3 million in fiscal year 2019.
Louisiana*
Increase in revenue of $226 million in fiscal year 2019.
Maine
Increase in revenue of $312 million in fiscal year 2019.
Maryland
Increase in revenue of $361 million in fiscal year 2019.
Massachusetts**
Increase in revenue of $65 million in fiscal year 2019.
Michigan
Increase in revenue of $1.7 billion in fiscal year 2019.
Minnesota
Increase in revenue of $416 million in fiscal year 2019.
Montana*
Decrease in revenue of of $46 million in fiscal year 2018. Montana’s revenue projections have been disputed.
Nebraska*
Increase in revenue of $220 million this year.
New York
Increase in revenue of $1.1 billion in fiscal year 2019.
North Dakota*
Decrease in revenue of $28.9 million in the 2019-21 biennium. Excluding the pass-through provision would result in a revenue increase.
Oregon
Decrease in revenue of $40 million in fiscal year 2019. Excluding the pass-through provision would result in an increase in revenue of $151 million.
Pennsylvania
Increase in revenue of $340 million in fiscal year 2018-2019.
South Carolina
Increase in revenue of $205 million in fiscal year 2018-2019.
Vermont
Increase in revenue of $30 million in fiscal year 2019.
Washington
Increase in revenue of $85 million in fiscal year 2018.
District of Columbia
Increase in revenue of $51.9 million in fiscal year 2019.
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