Nine states reduced their tax rates effective Jan. 1, 2025, and one eliminated its income tax. Find out if you live in one of the states making big changes.

Missouri residents may soon pay a flat 4% state income tax, under a plan advanced by Republican lawmakers who want to eventually eliminate the tax. At the same time, the GOP proposal would give the General Assembly the power to impose sales taxes on an array of previously untaxed services – everything from massages to furnace maintenance.

In a 90-7 vote, the Kentucky state House voted Thursday to advance a bill that would cut the state income tax rate from 4% to 3.5%.

Republican lawmakers wasted no time advancing a bill on the second day of this year’s legislative session to further reduce Kentucky’s individual income tax rate. The bill is a top GOP priority and would move Republicans closer to their goal of eventually eliminating the tax altogether.

The Kentucky House voted 90-7 to lower the state’s individual income tax rate on Thursday. Republicans delivered on a top priority just three days into this year’s 30-day legislative session as they moved on House Bill 1.

Republicans in the Kentucky House easily advanced a bill to cut the state’s individual income tax furthering their goal of eventually ending it.

With 90 votes to pass, House Bill 1 is now on its way to the Senate. After roughly an hour of debate, some Democrats joined Republicans in passing the bill, but not without warning about the direction of the state’s finances.

The bill to cut Kentucky’s individual income tax rate to 3.5% passed the House with bipartisan support and is expected to clear the Senate next month.