State Tax Conformity: Revenue Effects

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.

Download Your State’s Tax Revenue Report
State Overview of Revenue Estimates Revenue Reports
*States have not released official reports, but revenue numbers have been reported in news articles.
**This estimate only includes the impact of the new international tax provisions.

Arizona*

Increase in revenue of $236 million in fiscal year 2019.

See Story

Colorado

Increase in revenue of $196.5 million in fiscal year 2018-2019.

Download

Georgia*

Increase in revenue of $5.2 billion over five years.

See Story

Idaho

Increase in revenue of $97.4 million in fiscal year 2019.

Download

Indiana

Increase in revenue of $129 million in fiscal year 2019.

Download

Iowa

Increase in revenue of $188.3 million in fiscal year 2019.

Download

Louisiana*

Increase in revenue of $226 million in fiscal year 2019.

See Story

Maine

Increase in revenue of $312 million in fiscal year 2019.

Download

Maryland

Increase in revenue of $361 million in fiscal year 2019.

Download

Massachusetts**

Increase in revenue of $65 million in fiscal year 2019.

See Story

Michigan

Increase in revenue of $1.7 billion in fiscal year 2019.

Download

Minnesota

Increase in revenue of $416 million in fiscal year 2019.

Download

Montana*

Decrease in revenue of of $46 million in fiscal year 2018. Montana’s revenue projections have been disputed.

See Story

Nebraska*

Increase in revenue of $220 million this year.

See Story

New York

Increase in revenue of $1.1 billion in fiscal year 2019.

Download

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.

See Story

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.

Download

Pennsylvania

Increase in revenue of $340 million in fiscal year 2018-2019.

Download

South Carolina

Increase in revenue of $205 million in fiscal year 2018-2019.

Download

Vermont

Increase in revenue of $30 million in fiscal year 2019.

Download

Washington

Increase in revenue of $85 million in fiscal year 2018.

Download

District of Columbia

Increase in revenue of $51.9 million in fiscal year 2019.

Download

Related Resources

Governor Dayton’s Budget Proposal: Some Pro-Growth Provisions, but Misses the Mark on Others

Two States Cut Taxes Due to Federal Tax Reform

New Jersey on Path to Tying for Highest Corporate Tax Rate in Country

How an Unexpected Revenue Ruling Penalizes Capital Investment in Pennsylvania, and How Lawmakers Can Fix It

California’s Corporate Income Tax Rate Could Rival the Federal Rate

Testimony: Oregon Should Conform to the Federal International Provisions under the Tax Cut and Jobs Act

Tax Reform Moving Quickly in Georgia

Idaho Tax Reform Bill Advances

Oregon’s Chance to Limit a Flaw in the Federal Tax Code

Billions of New Revenue for Georgia Leads to Tax Reform Discussion

Testimony: Idaho Should Consider Decoupling from the Pass-Through Deduction

Tax Reform Moves to the States: State Revenue Implications and Reform Opportunities Following Federal Tax Reform

States Estimating Revenue Increases from Federal Tax Bill; Montana One Exception So Far