Many states rang in the new year with changes to their tax codes. Overshadowed in the public consciousness by federal tax reform, tax changes at the state level are nonetheless highly significant. Here are the key changes implemented at the state level on January 1, 2018.
- Connecticut: Large businesses have long faced a 20 percent surtax on the state’s standard 7.5 percent corporate rate, bringing the top marginal rate to 9 percent. On January 1, the surtax dropped to 10 percent, bringing the top marginal rate to 8.25 percent. This reduction was part of the extension of the surtax adopted in 2015.
- Delaware: The Delaware estate tax has been repealed effective January 1, thanks to legislation signed last year implementing a recommendation of a state advisory committee.