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This year, 39 states had notable tax changes, with some that began on Jan. 1, and others set to take effect on July 1.
Nine of these states cut their individual income tax rates for 2025. The most significant change is in Iowa, which had an individual income tax rate of 5.70% in 2024 and now has a rate of 3.80% for 2025, as the state transitions to single-rate income taxes. It continues a recent trend of states adopting flat income taxes.
Read more about the state individual income tax rate changes in 2025, sorted alphabetically by state name.
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States changing their individual income tax rates in 2025
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