Tax Law Changes
Stay informed about recent and upcoming federal and state income tax changes. We update this page as new legislation is enacted.
Recent Changes
July 4, 2025
One Big Beautiful Bill Act - Standard Deduction Increase
Federal standard deduction increased from $15,000 to $15,750 for single filers (up $750), from $30,000 to $31,500 for married filing jointly (up $1,500), and from $22,500 to $23,625 for head of household (up $1,125). Higher deductions mean less taxable income.
Source: IRS / Congress
April 15, 2025
Georgia Income Tax Rate Reduction
Georgia's flat income tax rate reduced from 5.39% to 5.19% (down 0.20%), retroactive to January 1, 2025. Signed into law as HB 111 by Governor Brian Kemp. Further reductions of 0.10% annually are planned until the rate reaches 4.99%.
Source: Georgia Department of Revenue
January 1, 2025
Louisiana Adopts Flat Income Tax
Louisiana transitioned from a tiered system (rates of 1.85%, 3.5%, and 4.25%) to a flat 3% income tax rate for all taxpayers. Most taxpayers see a tax reduction, especially those in higher brackets.
Source: Louisiana Department of Revenue
January 1, 2025
Social Security Wage Base Increase
The Social Security wage base increased from $168,600 to $176,100 (up $7,500). High earners making above the old cap will pay up to $465 more in Social Security taxes annually (6.2% × $7,500).
Source: Social Security Administration
January 1, 2025
2025 Federal Tax Bracket Adjustments
Federal income tax brackets adjusted for inflation. The 37% top rate threshold moved from $609,350 to $626,350 for single filers (up $17,000). All bracket thresholds increased ~2.8%, preventing "bracket creep" where inflation pushes you into higher tax rates.
Source: IRS Rev. Proc. 2024-40
Upcoming Changes
January 1, 2026
Kentucky Income Tax Rate Reduction
Kentucky's flat income tax rate will decrease from 4% to 3.5% (down 0.50%). A taxpayer earning $75,000 would save approximately $375 annually.
Source: Kentucky Legislature
January 1, 2026
North Carolina Income Tax Rate Reduction
North Carolina's flat income tax rate will decrease from 4.25% to 3.99% (down 0.26%), completing a phased reduction plan that started in 2022 when the rate was 5.25%.
Source: North Carolina Department of Revenue
January 1, 2026
Ohio Transition to Flat Tax
Ohio will simplify from a multi-bracket system (with rates up to 3.5%) to a flat 2.75% tax on income above $26,050 (previously $26,050). Income at or below this threshold remains untaxed. Most taxpayers will see a reduction.
Source: Ohio Department of Taxation
January 1, 2026
Oklahoma Tax Bracket Simplification
Oklahoma will reduce its top income tax rate from 4.75% to 4.5% (down 0.25%) and simplify from six brackets to three. Most taxpayers will see modest savings.
Source: Oklahoma Tax Commission
January 1, 2026
Nebraska Top Rate Reduction
Nebraska's top income tax rate will decrease from 5.2% to 4.55% (down 0.65%), with plans to further reduce to 3.99% by 2027. High earners in Nebraska will see the largest benefit.
Source: Nebraska Department of Revenue
January 1, 2026
Georgia Further Rate Reduction
Georgia's flat income tax rate is scheduled to decrease from 5.19% to 5.09% (down 0.10%), continuing the phased reduction plan toward 4.99%.
Source: Georgia Department of Revenue
January 1, 2026
Social Security Wage Base Increase
The Social Security wage base will increase from $176,100 to $184,500 (up $8,400). High earners making above the old cap will pay up to $521 more in Social Security taxes annually (6.2% × $8,400).
Source: Social Security Administration
Disclaimer
Tax laws are subject to change. This page is for informational purposes only and should not be considered tax advice. Always consult official state tax agencies or a qualified tax professional for the most current information.