Significant state tax law reform Federal taxes often take the spotlight in tax planning, but tax laws at the state level are often responsible for big changes to your tax liability each year.

Lowered base income tax rates in Arizona Twelve states enacted individual income state tax cuts in 2021, according to Vermeer, some of which were retroactive to Jan. 1, 2021

Corporate income tax rate reduced in Arkansas Starting in January, Arkansas cut its corporate income tax rate to 5.9% from 6.2%. Changes to state corporate income tax

New pass-through tax level in Colorado Colorado is one of five states that implemented a new pass-through entity election in 2022

Corporate income tax rate increased in Florida Florida is the only state so far to increase its corporate income tax rates in 2022. As of Jan. 1

New pass-through option in Georgia Similar to changes made in Colorado, small business owners in Georgia organized as partnerships

New pass-through option in Illinois Illinois now also allows partnerships and S corporations to be taxed as a separate entity starting in the 2022 tax year.

Eliminated inheritance tax in Iowa Some states impose an inheritance tax, which taxes assets received from a deceased person's estate.