Georgia moves to cut income taxes again
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Your total annual tax bill depends on where you live, with state income taxes varying from nonexistent all the way up to nearly 14% for some especially high earners.
Why it matters: Some states with low (Georgia) or no (Florida) individual income tax are attracting lots of new residents. But they could find themselves in trouble in a world with less federal financial aid.
State of play: On March 20, the Georgia Senate sent legislation that would lower Georgia's flat income tax rate from 5.39% to 5.19% to Gov. Brian Kemp's desk.
- The proposed cut would cost the state roughly $870 million. Supporters say it is worth it to send that money back to taxpayers.
What's next: Some Georgia Republicans want to drop the state's flat income tax to 4.99% in the coming years.
- Thus far they've explored two means to that end: exemptions for special interests — like college student-athletes with name, image and likeness deals — and annual shaves of the tax rate.
By the numbers: California (13.3%), Hawai'i (11%) and New York (10.9%) have the highest top marginal income tax rates for individuals, according to data from the Tax Foundation, a nonpartisan think tank.
Zoom in: Georgia is one of several states, including Arizona, Idaho and Illinois that have a flat income tax — meaning everyone pays the same rate regardless of their income.