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03/27/2026

📊 Fourteen states charge zero state income tax on traditional IRA and 401(k) withdrawals.

Seventeen states plus D.C. tax them in full. The rest fall somewhere in between.

Michigan is the newest addition to the exempt list. Starting with the 2026 tax year, the state fully exempts most retirement income from state income tax under Public Acts 4 and 24.

"Partially taxes" means the state offers a deduction, exclusion, or income limit that reduces what you owe. The size of that break varies widely. Georgia excludes up to $65,000 for those 65 and older. Oklahoma excludes $10,000. Louisiana excludes $6,000.

Illinois exempts all qualified retirement plan distributions from state tax. That includes 401(k)s, 403(b)s, and IRAs. The state still has a 4.95% flat income tax, but it does not apply to retirement account withdrawals.

Maryland's rules are split. 401(k) distributions qualify for the state pension exclusion of up to $42,000 for those 65+. Traditional IRA withdrawals do not qualify for that exclusion and are fully taxable.

Where you live does not change your federal tax bill on retirement withdrawals. But the state difference on a $50,000 annual distribution can range from $0 to over $3,000 depending on the state.

This list covers traditional accounts only. Roth withdrawals, Social Security, and pensions each follow different state rules.

02/05/2026

If you need to mail time sensitive documents/checks, make sure you mail it a few days before duo date .

The U.S. Postal Service's new postmark process could lead to late fees and penalties when mailing time-sensitive documents.

01/21/2026

Treasury and the share guidance on the permanent 100% additional first-year depreciation deduction for eligible depreciable property acquired after Jan. 19, 2025, provided by the One, Big, Beautiful Bill. Read more here: https://ow.ly/UfJF50XXpLT

01/17/2026

01/15/2026

A proposed “millionaire’s tax” in Washington State would yield the highest combined state and local top income tax rate in the country.

Read more: https://hubs.ly/Q03-Q8-g0

01/08/2026

One area of the tax code in which extreme complexity and low compliance go hand-in-hand—and where reform is desperately needed—is in states’ nonresident individual income tax filing and withholding laws.

12/31/2025

Starting January 1st, new NC and federal laws and tax changes begin.

First, North Carolina:

•The individual state income tax rate drops to 3.99%.

(Down from 4.25%)

•The state officially recognizes only male and female s*xes, impacting birth certificates and school policies.

•Parents can restrict library books for children and students must use sleeping quarters (like on field trips) according to their s*x assigned at birth.

•Local school boards must adopt internet safety policies covering student data, social media and hacking.

•Local candidates must complete training before running, and PACs face stricter registration/reporting.

•Healthcare employers must have prevention plans, investigate incidents and report to the state.

•Expands protections and notices for domestic/s*xual violence and hate crime victims.

•Clinical Pharmacist Practioners gain more authority under physician agreements.

•Healthcare workers can waive meal breaks with written consent.

•Certain private school staff can now carry weapons with permits and school approval.

•Vehicle owners will get more control over renewal timing.

•The new NC investment authority officially takes over management of all state investments including retirement funds for teachers and public employees.

•A new NC interstate medical licensure compact creating a faster way for doctors to get licensed here and improves access to Healthcare.

•Estate law attorneys can now keep electronic records of original wills and use certified copies in probate if the original is lost, adding new flexibility for families.

New Federal laws:

•No taxes on tips up to $25,000 and no tax on overtime up to $12,500.

•Efficiency standards lowered on everyday appliances such as water heaters, lowering costs.

•A new rule will now allow individuals who claim the standard deduction to deduct up to $1000 in qualifying charitable cash contributions ($2,000 for married couples filing jointly).

•The IRS also announced higher standard deductions ($32,200 married, $16,100 single) and an increased estate tax exemption ($15 million) for the 2026 tax year, reflecting inflation.

•No tax on American Made car loan interest.

•Senior social security deduction.

•The 2026 business standard mileage rate increases to 72.5 cents per mile.

•Child Tax Credit boosted to $2200.

•Trump Child savings accounts continue with each child born receiving a one time $1,000 government seed contribution and allowing families to contribute up to $5,000 annually (beginning July 4, 2026). The funds will be invested in a broad stock market index, remain private property under guardian control until age 18 and if fully funded and left untouched, could grow to as much as $1.9 million by age 28.

Dell is also contributing an additional $250 to each account in certain zip codes with median incomes below $150 k.

•Green New Deal regulations cut lowering car prices.

•Stricter work requirements apply for able bodied adults receiving SNAP benefits.

•Certain gambling winnings below a higher threshold will no longer trigger mandatory reporting forms. For casual gamblers, the adjustment reduces paperwork and administrative burdens.

11/23/2025

Key small‑business provisions in the “One Big Beautiful Bill” (signed July 4 2025)

Permanent small‑business tax deduction – The bill makes the existing deduction for qualified small‑business expenses permanent, giving owners a stable, ongoing tax break.

Higher 1099‑MISC threshold – The reporting threshold for the 1099‑MISC form is raised, reducing the paperwork burden on small firms that pay independent contractors.

Retroactive R&D expensing – Companies with < $31 million in gross receipts can immediately expense research‑and‑development costs dating back to Jan 1 2022, instead of amortizing them over 15 years, uschamber.com.

Expanded SALT (state‑and‑local‑tax) deduction – The cap on the SALT deduction rises from $10 k to $40 k per year, benefiting small‑business owners whose state taxes exceed the old limit, uschamber.com.

EBITDA‑based deduction calculations – Deductions may be calculated using EBITDA (which adds depreciation and amortization) rather than EBIT, allowing larger expense write‑offs for many small and franchise operators, entrepreneur.com.

Repeal of the “de‑minimis” import‑tariff rule – Small import shipments will no longer qualify for the low‑value exemption, meaning some small businesses may face higher tariffs on inexpensive goods, bankrate.com.

Other targeted relief – The bill includes various “tax‑friendly” measures (e.g., immediate expensing of certain capital assets) that collectively lower the overall tax burden for small enterprises, uschamber.com.

Bottom line: The legislation aims to simplify reporting, boost cash flow, and make several tax benefits permanent for small‑business owners, while also adjusting import‑tariff rules that could raise costs on low‑value shipments. If you run a small business, it’s worth reviewing these changes with your accountant to ensure you capture all eligible deductions and adjust any import‑related budgeting.

The U.S. Chamber of Commerce is the world’s largest business organization. We advocate, connect, inform, and fight for business growth and America’s success.