Navigating the evolving tax environment in 2024 is crucial for maximizing your financial planning efficiency. Here’s a more detailed overview of the key changes to be aware of:
Fuel Tax Adjustments: Witness a shift in gas taxes with Oregon increasing by 2 cents, while Utah’s rate escalates to 36.5 cents. Notably, Pennsylvania sees a decrease, the first in half a decade.
Reduction in Grocery Taxes: In a significant move, Kansas has halved its grocery tax from 4% to 2%, potentially saving average families around $17 per month.
Special Tax Holidays: Florida introduces a novel back-to-school sales tax holiday starting in January and extending until January 15, providing relief for families during the shopping season.
Property Tax Incentives: Pennsylvania residents can now benefit from an increased rent/property tax rebate that has risen to $1,000. Similarly, Texas has amplified its homestead exemption, jumping from $40,000 to a substantial $100,000.
Expanded Tax Credits: Maine is introducing a refundable $300 dependent exemption. Additionally, states like Colorado, Connecticut, and Massachusetts are enhancing their Earned Income Tax Credit (EITC) percentages, offering more significant relief to eligible taxpayers.
Augmented Child Tax Credits: 2024 sees states like Colorado, Utah, and Massachusetts enhancing their child tax credit offerings, providing additional financial support to families.
Broad Income Tax Reductions: Keep an eye on sweeping income tax cuts in various states. Georgia is implementing a flat rate of 5.49%, while Iowa is adjusting its tax brackets. More such adjustments are happening across the country.
Special Exemptions to Explore: Don’t overlook unique exemptions such as Alabama’s relief on overtime pay, Missouri’s Social Security exemption, and New Hampshire’s phase-out of taxes on interest and dividend income.
These updates are integral to formulating a well-informed financial strategy in the face of the dynamic tax landscape of 2024.
