These States Are Cutting Income Taxes in 2025

Trying to save a buck or two can be tough with living expenses, inflation, and everyone's favorite: taxes. Some states are trying to help out with the latter, cutting individual income-tax rates for the upcoming year, per an analysis from the Tax Foundation think tank. CBS News sifted through the numbers to find the nine states that will offer taxpayers a bit of a break this year, though most of the decreases are fairly modest. The states where you may now see a little more of your paycheck in your wallet in 2025:

• Indiana: 3%, down from 3.05%
• Iowa: 3.8%, down from 5.7%
• Louisiana: 3%, down from 4.25%
• Mississippi: 4.4%, down from 4.7%
• Missouri: 4.7%, down from 4.8%
• Nebraska: 5.2%, down from 5.84%
• New Mexico: Rates in state's six tax brackets will range from 1.5% to 5.9% (previously, the lowest tax rate in five tax brackets was 1.7%)
• North Carolina: 4.5%, down from 4.75%
• West Virginia: 4.82%, down from 5.12%

More on each state here. (More income tax stories.)