The Kentucky personal income tax reductions are a continuation of a two-to-three-year trend across the country. Since 2020, about two dozen states have reduced personal and/or corporate income tax rates as well as providing reductions or relief from many other state taxes. Such reductions obviously affect in-state residents but can also have a significant impact on out-of-state residents and businesses.
Not all the proposals to reduce income taxes currently considered in the legislatures will be enacted, but many states are projected to continue healthy fiscal conditions into FY24. It is anticipated tax cut activity will continue, albeit on a smaller scale. The outcomes may affect business location decisions, pass-through entity liabilities, remote work considerations and general state tax planning.
Read the full article and view other tax cut proposals here.
