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The Tax Foundation is the nation’s
leading independent tax policy
research organization. Since 1937,
our research, analysis, and experts
have informed smarter tax policy
at the federal, state, and local
levels. We are a 501(c)(3) nonprofit
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State Tax Changes as of January 1, 2020
· Thirty-five states have major tax changes taking effect on January 1, 2020.
· Arkansas, Tennessee, and Massachusetts will each see reductions in their
individual income tax rates.
· Five states (Iowa, Kansas, Maine, North Carolina, and Ohio) will see notable
changes to their individual income tax bases.
· Corporate income, capital stock, franchise, or similar taxes on businesses
or financial institutions will decrease or be eliminated in seven states
(Connecticut, Florida, Illinois, Indiana, Missouri, Mississippi, and New Jersey),
but taxes will increase on certain financial institutions in Washington.
· Oregon will implement a new Corporate Activity Tax (CAT), which is a
modified gross receipts tax (GRT).
· Florida is the lone state with a general sales tax rate change (a reduction).
· Five states will see changes to their estate taxes. Connecticut, Minnesota,
Vermont, and New York will see increases in their estate tax exemptions
(taxpayer-friendly provisions), while Hawaii’s estate tax will become more
· Two states (Illinois and Louisiana) will implement new excise taxes on
Errata: An earlier version of this paper, in the Key Findings, mistakenly listed New
Jersey among the states seeing a corporate income tax rate increase rather than a
reduction. It has been corrected.
Addendum: This paper has been updated to mention new and increased vehicle
registration fees and sales taxes on