A wave of state tax changes took effect on July 1, impacting monthly finances with adjustments to fuel, income, and sales taxes. Changes affect take-home pay and prices at the pump. Excise changes across states increased gas, tobacco, and cannabis taxes. Some states decreased gas tax rates, while Hawaii implemented a road usage charge for EVs. Fuel tax increases could lead to higher prices for goods and services. In states with increased fuel taxes, budgeting for gas, goods, and services may be necessary. States like Arkansas and Kansas are expanding sales tax exemptions for data centers, potentially attracting more businesses. South Carolina is reducing its top marginal tax rate, and many states are expected to make changes to income tax rates. Decreased income taxes can lead to increased take-home pay, consumer spending, and potential new residents. Increased income taxes may fund infrastructure improvements and reduce consumer spending. Under Trump’s tax bill, the SALT deduction cap increased to $40,000, benefiting taxpayers in high-tax states. The cap will continue to increase annually until 2029. States may need to conform to the new federal tax law.

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