State Income Tax Changes — 2027
6 jurisdictions changed their individual income tax for 2027: 7 cut rates, 1 raised them, and 0 restructured. Every entry below is confirmed against the state's own revenue department, statute or enacted bill — never a news report alone.
Every verified 2027 change
Indiana's flat individual adjusted gross income tax rate falls from 2.95% to 2.90%, the last step of the reduction schedule enacted in 2023. The Department of Revenue's own rates page states the rate "will adjust in 2027 to 2.90%".
2.95% flat (2026) → 2.90% flat
Nebraska's top two bracket rates fall from 4.55% to 3.99%, completing the reduction schedule set by LB 754 in 2023. Neb. Rev. Stat. s 77-2715.03 states the rates unconditionally by taxable year, with no revenue trigger.
4.55% top rate (2026) → 3.99% top rate
Nebraska Legislature — Neb. Rev. Stat. s 77-2715.03 — Individual income tax brackets and rates
Montana's top ordinary rate falls from 5.65% to 5.4% and the 4.7% bracket widens substantially — the second and final step of House Bill 337. The long-term capital gains rates stay at 3.0% and 4.1%, but their brackets move to match the new ordinary ranges.
5.65% above $47,500 single / $95,000 joint / $71,250 head of household (2026) → 5.4% above $65,000 single / $130,000 joint / $97,500 head of household
Montana Department of Revenue — HB337: 2026-2027 Montana Individual Income Tax Changes
- MississippiCutrateEffective January 1, 2027 · House Bill 1 (2025 Regular Session), amending Miss. Code s 27-7-5
Mississippi's rate on taxable income above $10,000 falls from 4% to 3.75%, the first step of the phase-out enacted by House Bill 1 in 2025. The enrolled bill sets 3.5% for 2028, 3.25% for 2029 and 3% for 2030; reductions below 3% from 2031 are conditional on reserve-fund and revenue tests, and are not published here.
4% on taxable income over $10,000 (2026) → 3.75% on taxable income over $10,000
- Rhode IslandCutexemptionEffective January 1, 2027 · House Bill 7127 Substitute A, as amended (FY2027 budget), Article 6 s 5, amending R.I. Gen. Laws s 44-30-2.6(c)
Rhode Island drops the full-retirement-age requirement from its Social Security modification. From 2027 a taxpayer under full retirement age can claim it, provided they still meet the income test — AGI under $80,000 single, head of household or married filing separately, or under $100,000 married filing jointly.
Modification required both full retirement age and AGI below the threshold (2016-2026) → Income threshold only; the age requirement is removed
Rhode Island Division of Taxation — Summary of Legislative Changes 2026 — Social Security Relief
- Rhode IslandCutcreditEffective January 1, 2027 · House Bill 7127 Substitute A, as amended (FY2027 budget)
Rhode Island creates a refundable Child Tax Credit of $330 per child aged 18 or under, for residents filing a personal income tax return. It phases out above $88,500 AGI for single, head of household, married filing separately and qualifying widow(er) filers, and above $110,640 for married filing jointly, and the credit and thresholds are indexed annually.
No Rhode Island child tax credit → $330 refundable credit per child, phasing out above $88,500 / $110,640 AGI
Rhode Island Division of Taxation — Summary of Legislative Changes 2026 — Child Tax Credit
- Rhode IslandIncreasebaseEffective January 1, 2027 · House Bill 7127 Substitute A, as amended (FY2027 budget), Article 6 ss 2, 5
Rhode Island permanently decouples from two federal provisions for tax years beginning in 2027: the IRC s 163(j) treatment of depreciation, amortization and depletion deductions, and the amount excluded from income under IRC s 1202 for qualified small business stock. Decoupling from s 1202 means a gain that escapes federal tax is still taxed by Rhode Island.
Temporary decoupling under the FY2026 budget → Permanent decoupling from IRC ss 163(j) and 1202 from tax year 2027
Virginia's standard deduction rises for the first time since 2025. Va. Code s 58.1-322.03 sets $9,200 for single individuals and $18,400 for married persons for taxable years beginning on and after 1 January 2027, up from $8,750 and $17,500. Rates and brackets are unchanged.
$8,750 single / $17,500 married (2025-2026) → $9,200 single / $18,400 married
Why our count may differ from what you read elsewhere
What we are not publishing, and why
A change appears above only where a statute, an enrolled bill or the state's own revenue department states the 2027 figure. These jurisdictions have something in motion that does not meet that bar. They are named rather than left out, because an absence is otherwise indistinguishable from an oversight.
- North CarolinaTrigger not certified
North Carolina's rate would fall from 3.99% to 3.49% for 2027, but only if FY2025-26 General Fund revenue exceeded $33,042,000,000. G.S. 105-153.7(a1) makes the reduction conditional, and NCDOR states only that "Additional rate changes may apply to tax years beginning with 2027 based on certain rate reduction triggers" — it publishes no 2027 rate. Consensus forecasts project the trigger will be met; a projection is not a certification, so nothing is published here.
Session Law 2023-134, G.S. 105-153.7(a1). North Carolina Department of Revenue (retrieved 2026-09-19)
- South CarolinaTrigger not certified
H.4216, signed 30 March 2026, restructured South Carolina's income tax from tax year 2026. Its only 2027 provision is a further cut in the top rate, conditional on the Board of Economic Advisors projecting revenue growth of 5% or more, with the determination due by 15 February 2027. That determination has not been made.
H.4216 (2025-2026 Session), signed 30 March 2026. South Carolina Department of Revenue (retrieved 2026-09-19)
- GeorgiaNo published figure
HB 463, signed 11 May 2026, cut Georgia to a flat 4.99% from 2026 and provides for further annual reductions subject to revenue conditions that can delay them. The Department of Revenue publishes 4.99% for 2026 and no figure for 2027, so no 2027 rate is published here.
HB 463 (2026), amending the HB 1437 reduction schedule. Georgia Department of Revenue (retrieved 2026-09-19)
- ColoradoNot enacted
Colorado's expansion of the pension and annuity subtraction to anyone 55 or over, from tax year 2027, was banked during earlier research as an item to confirm. Both vehicles failed: SB25-136 was postponed indefinitely by the Senate State, Veterans & Military Affairs Committee on 27 February 2025, and HB26-1062 by the House Finance Committee on 9 February 2026. Both are recorded as Lost.
HB26-1062 and SB25-136, both postponed indefinitely. Colorado General Assembly (retrieved 2026-09-19)
- KentuckyNot enacted
Kentucky's rate is 3.5% from 2026. HB 152 of the 2026 Regular Session would have set graduated rates from 2027 and removed the reduction procedure, but it was referred to House Appropriations & Revenue on 14 January 2026 and has not passed. No 2027 change is enacted.
HB 152 (2026 Regular Session), in committee. Kentucky General Assembly (retrieved 2026-09-19)
- OklahomaTrigger not certified
Oklahoma's HB 2764 collapsed six brackets into three and cut the top rate to 4.5% from 2026. Further reductions on the 'path to zero' require a preliminary certification by the State Board of Equalization at its December meeting, the first of which falls in December 2026 and has not taken place. Nothing is published for 2027.
HB 2764 (2025), and HB 4072 (2026). Oklahoma Legislature (retrieved 2026-09-19)
- West VirginiaLooks like a 2027 change, is not
West Virginia cut rates 5% retroactive to 1 January 2026 (W. Va. Code s 11-21-4j, effective 12 June 2026) — a 2026 change, not a 2027 one. Its standing trigger under s 11-21-4h has the Secretary of Revenue determine each 15 August whether collections exceed the inflation-adjusted base, but a resulting reduction applies "beginning the second taxable year following the determination", so the first determination on 15 August 2026 reaches tax year 2028.
- IowaLooks like a 2027 change, is not
Iowa completed its flat-tax conversion at 3.8% under Senate File 2442 (2024) and the Department of Revenue publishes no further scheduled reduction. No 2027 change.
- MissouriLooks like a 2027 change, is not
Missouri's 2026 legislation cut the top individual rate to 3.7% retroactive to January 2026 and the top CORPORATE rate to 4.1% from 2027. The 2027 change is to the corporate tax, which is outside this dataset's scope; no individual income tax change takes effect in 2027.
- New MexicoLooks like a 2027 change, is not
New Mexico's 2026 session decoupled from federal IRC ss 168(k), 168(n) and 163(j)(2) for taxable years beginning on or after 1 January 2027, but that change is to the CORPORATE income tax base and is outside this dataset's scope. No individual income tax change takes effect in 2027.
Every jurisdiction was checked for individual income tax changes already enacted and taking effect in tax year 2027. A change is published here only where the operative text — a statute, an enrolled bill, or the revenue department's own guidance — states the 2027 figure. Proposals, bills still in committee, ballot measures and trigger-dependent reductions whose trigger has not been certified are withheld and named, with the reason, rather than omitted silently.
Every published change and every withheld item was verified against a primary source, named per record. Where no 2027 change is published for a jurisdiction, the basis is the absence of a 2027 item from that state's own guidance and from legislative records — weaker evidence than an affirmative statement that nothing changes, and it is not claimed as one.
Nine jurisdictions levy no tax on ordinary individual income (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming), so no individual income tax rate change can take effect there in 2027. Washington's capital gains excise tax and New Hampshire's repealed interest and dividends tax are outside this dataset.
Corporate income tax changes are out of scope even where the same bill also amends individual provisions; Missouri's and New Mexico's 2027 changes are corporate and are recorded as such.
The 2027 picture is not final. State legislatures sitting in late 2026 and early 2027 can still enact changes effective for tax year 2027, and several withheld items will become publishable when their triggers are certified.
Other years
This list was last verified on . Know of a change we have missed? Tell us — include the bill number or the state source and we will add it.