According to a recent analysis published by the Tax Foundation, starting January 1 of next year, many taxpayers in the United States could have additional relief, as at least nine states in the country will reduce their taxes in 2026.

According to the Tax Foundation analysis, these will be the nine states that will reduce their taxes in 2026. Here we show you a list of the individual income tax rate by state in 2025 and the rate that will apply in 2026. Although these reductions began during the pandemic, those who defend these tax changes point out that this will boost economic growth and increase competitiveness among the states. For its part, the Center for Budget and Policy Priorities argues that eliminating or reducing taxes could hinder investment.