State Tax Updates 2018.

• Position: BY THE NUMBERS

As the world of federal tax was shaken up by the passage of the Tax Cuts and Jobs Act of 2017, U.S. tax departments across the country continue to adjust. One of the main pieces of the new tax bill is the lowered corporate tax rate, which had not been adjusted since the 1980s. On the state level, however, corporate income taxes typically see yearly changes that should be noted. Because the Tax Cuts and Jobs Act affects all states, states have further impetus to evaluate their own tax codes. Below are some important state-level rate adjustments in 2018.

Connecticut

The 20% surtax was lowered to 10%, decreasing the top marginal rate from 9% to 8.25%. That surtax is added onto the standard rate of 7.5%.

20% [right arrow] 10%

New Mexico

Part of a multiyear phasedown, the corporate income tax rate dropped from 6.2% to 5.9%. That's a continued reduction from the 2013 top rate of 7.6%.

6.2% [right arrow] 5.9%

Mississippi

As a part of tax reforms adopted in 2016, the 3% individual income tax rate is now being phased out, and a deduction for a portion of federal self-employment tax is being created.

3%

New York

The franchise tax continues to be phased out-anticipated fully for 2021-at a.075% rate.

.075%

Hawaii

After temporary income tax increases expired in 2017, three brackets...