Monday, 12 January 2026

8 states where income taxes are falling

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The Daily Money

ALL THE MONEY NEWS YOU NEED TO KNOW

Mon Jan 12 2026

Daniel de Visé | Personal Finance Reporter

Good morning! It's Daniel de Visé with your Daily Money.

Millions of Americans will benefit from new tax cuts in 2026, Medora Lee reports. To reap the lower rates, however, you have to live in one of eight states.

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Ken Alltucker weighs in with a story about the drastic steps American families are taking to deal with dramatically higher health insurance costs under the Affordable Care Act in 2026, after the expiration of COVID-era subsidies.

'Where's my inheritance?' You may have to wait.

Finally: America's adult children say they are ready to manage that inheritance now. Their parents might disagree .

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Daniel de Visé covers personal finance for USA TODAY. The Daily Money breaks down complex consumer and financial news. Subscribe here.

Americans in these 8 states may pay lower income tax rates this year

MIAMI, FLORIDA - APRIL 17: Adeleisy Perez (R) discusses her finances with Annie Cabanas, a Tax Preparation specialist, as she completes her tax filing at a Liberty Tax Service office on April 17, 2023 in Miami, Florida. April 18th is the deadline in the United States for residents to file their income tax returns. (Photo by Joe Raedle/Getty Images)

A handful of states have lowered their individual income tax rates this year. Is one of them yours?

Faced with the loss of her health insurance, Houston resident Mila Clarke, left, married her partner in a December 2025 ceremony. Clarke joined her husband's corporate health insurance plan following the wedding.

Americans take drastic steps to deal with rising Obamacare bills

Without the enhanced tax credits that expired in 2025, average costs for 22 million Americans who get subsidized ACA insurance more than doubled.

A teller shows US dollar bills at an exchange office at the Grand Bazaar in Istanbul on November 28, 2024.

Adult children want to talk inheritance. Their parents aren't ready.

America's adult children say they're ready to manage their inheritance. Their parents might not agree.

The 2021 tax season kicked off on Jan. 24, 2022. For most, the tax deadline to send your return is April 18, 2022.

IRS reveals first date of tax filing season. Here's what to do first.

Preapare now to be among the first to get a refund by filing your tax return on the first day of tax season. Here's when the IRS says that is.

Your Social Security check won't go very far in Hawaii, a new analysis finds.

Your Social Security check goes furthest in these 10 states

Social Security is supposed to cover 40% of pre-retirement earnings. But a new report shows your check goes further in some states than others.

Barbie is launching its first doll with autism.

See Barbie's first autistic doll, with features representing the community

Barbie's first autistic doll has been developed with sensory-sensitive features in mind. See how.

There is no uniform law about driving while wearing headphones in the U.S.

State laws vary on driving with earbuds. Where is it legal?

Which states can you drive with earbuds in? Six states ban it altogether. Here's what to know.

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Saving in a 401(k)? You may not get the tax break you're expecting.

There's a new rule coming to 401(k) catch-up contributions this year that affects higher earners. And it may also have an impact on your taxes.

A group of workers at Keller Williams Partners Realty cheer on March 25, 2013 in Plantation, Fla. after they matched five Powerball numbers and won $1 million. Realtor Laurie Finkelstein Reader, middle bought the tickets at a Mobil gas station in Pembroke Pines after collecting $20 from nearly everyone in the office. The winners: (left to right front row) Amy Kilcoyne, Saria Finkelstein, Laurie Finkelstein-reader holding the winning lottery ticket, Jennifer Forrest and Rebecca Kennedy. Middle row: Natali Levine, Marilyn Finkelstein, Natalie Mor and Jennifer Maldonado; and in the back row: Matt Weiner holds a photo of Joey Rivero who was on vacation, Natalie West and Eric J. Ubiera.

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