Your State Tax Bill May Go Up in 2018

States are searching for ways to close yawning deficits. But there’s good news: Estate taxes are on their death bed.

For all the talk about tax reform, unless your personal situation changed last year, you won’t see much difference in your 2017 federal tax bill. But your state tax bill could be another story. Faced with yawning budget deficits and deteriorating infrastructure, several states raised taxes on everything from income to gas in 2017, and more increases could be in the offing for 2018.

In Illinois, for example, lawmakers voted to increase the state’s flat-rate income tax to 4.95%, from 3.75%, effective July 1, 2017. In Kansas, to help close the state’s budget gap, law­makers voted to roll back some of the income tax cuts enacted in 2012. The rollback increased the top 2017 income tax rate from 4.6% to 5.2%; in 2018, the top rate will rise to 5.7%.

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Sandra Block
Senior Editor, Kiplinger's Personal Finance

Block joined Kiplinger in June 2012 from USA Today, where she was a reporter and personal finance columnist for more than 15 years. Prior to that, she worked for the Akron Beacon-Journal and Dow Jones Newswires. In 1993, she was a Knight-Bagehot fellow in economics and business journalism at the Columbia University Graduate School of Journalism. She has a BA in communications from Bethany College in Bethany, W.Va.