More than half of states are considering personal income tax cuts this year

Close up of a mid adult woman checking her energy bills at home, sitting in her living room. She has a worried expression (Credit: Eleganza)

State governments are still flush with cash from federal COVID-19 aid dollars and increased revenues. And more than half are considering using those budget surpluses to institute or accelerate tax cuts for residents.

At least 27 states are considering some kind of personal income tax cut, according to the Institute on Taxation and Economic Policy (ITEP), a left-leaning think tank. The proposals vary, from cutting existing top tax rates to accelerating tax cuts that have already been approved (Georgia, for example, is considering fast-tracking tax cuts that will take effect next year).