8 states where Americans may pay less Income Tax this year

Eight states cut income tax rates on Jan. 1, 2026. Nebraska’s top rate drops to 4.55 %. Indiana falls to 2.95 %, Ohio simplifies to 2.75 %. North Carolina reaches 3.99 %, Kentucky 3.5 %, and Montana 5.65 %. Oklahoma and Mississippi also lower rates. Residents keep more earnings. States aim to boost growth, attract workers, and investments.