New Hampshire has always been a no-personal income tax state. Now they’ve gone all the way and ended their capital gains tax, as of 1/1/25. This makes eight states with truly no income again. (The number had dropped to seven when Washington State adopted a capital gains tax a couple of years ago.) Congrats to New Hampshire Governor Chris Sununu for getting this done.

For more good news, we’re thrilled to report that with the New Year, Iowa and Louisiana have joined the list of states with a flat rate income tax. There are now 16 such states and with another eight states having no income tax, half the states have either a flat tax or no income tax at all.

A special nod to Governor Kim Reynolds who has slashed Iowa’s progressive income tax system with a top rate of 8.98% down to a 3.8% flat income tax today.  Iowa has also abolished its inheritance tax.

Similarly, Louisiana has moved from a progressive system that had a top rate of 4.25% to a 3% flat tax. In North Carolina, meanwhile, the state’s flat income tax dropped from 4.5% to 4.25% on January 1, 2025. A year later, at the start of 2026, the rate will fall again to 3.99%.