Americans in these states will pay less in taxes this year

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A number of states are lowering income taxes this year, putting more money into many Americans' pockets as they continue to grapple with stubborn inflation.

At least 12 states, a majority led by Republicans, will reduce taxes for residents in some form this year, according to the Tax Foundation, a nonpartisan group that lobbies for lower taxes.

Here is a closer look at where state taxes are being reduced.

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At the start of January, the top individual income tax rate in Arkansas fell to 4.4%, down from 4.9% the previous year.

The change accelerates rate reductions that originally were scheduled to begin in the 2025 tax year.

Connecticut will deliver some relief to taxpayers this year, cutting its 3% individual income tax bracket to 2%, and reducing its 5% bracket to 4.5%. However, the relief does not apply to individuals earning $150,000 or more, or married couples earning $300,000 or more. 

All other rates remain unchanged, including the top marginal rate.

The skyline of Atlanta, Georgia, is pictured. (iStock / iStock)

Georgia will join several states that have either adopted or are considering a flat tax rate. The Peach State will eliminate its six individual income tax rates in favor of a flat tax rate of 5.49% under legislation signed by Republican Gov. Brian Kemp in 2022.

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Indiana will accelerate its previously enacted tax rate cuts in 2024, trimming the individual income tax rate from 3.15% to 3.05%.

Iowa is