Fifty states, 7,383 state legislators, and over 100,000 bills: legislative sessions are a whirlwind. But the Tax Foundation and its state experts are here to help make sense of the key tax policy issues in state capitols.
This page is intended as a resource for policymakers and others focused on state-level tax policy, providing one-click access to key resources and highlighting papers on some of the biggest issues of 2025. It is also an open invitation to connect directly with our experts with questions or requests for legislative testimony. Contact information for the Tax Foundation expert assigned to each state can be found below.
The past four years have seen the majority of states adopt rate cuts, particularly to individual income taxes. Some states have gone even further by easing compliance costs for hybrid and remote workers, offering permanent full expensing of capital investments, and adopting other reforms to promote mobility and modernization in an increasingly competitive state tax landscape.
In addition to papers on major issues in contemporary tax policy, we also have resources like our six-part “boot camp” series for state lawmakers and others interested in state tax policy, along with publications like the State Business Tax Climate Index (a comparison of the competitiveness of states’ tax structures) and Facts & Figures (a handy guide to state tax rates, collections, and burdens data). We invite you to treat this page as a launching point as you think about state tax policy issues throughout 2025.
Contact an Expert Get State Tax Reform Guide See Featured Resources
The Tax Foundation has a talented team of experts, each assigned to his or her own set of states. If you have any questions, or if we can be of assistance to you in any way, please reach out to the tax policy expert assigned to your state.
In an era of enhanced mobility, where tax competition matters more than ever, an out-of-date tax code just won’t do. Lawmakers should modernize their tax codes to position their states for success in a rapidly changing economic landscape.
Our new booklet highlights five tax reforms that most states could undertake to grow their economies and position themselves for success. Download the guide below to learn how states can:
Download State Tax Reform Handbook
The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
115 min read
Policymakers can and should address taxpayers’ legitimate grievances about out-of-control property tax bills, but they should do so without upending a system of taxation that is more efficient, fair, and pro-growth, and better suited to municipal finance, than any of the alternatives.
39 min read
Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
2 min read
States are unprepared for the ongoing shift to remote and flexible work arrangements, or for the industries and activities of today, to say nothing of tomorrow. In some states, moreover, existing tax provisions exacerbate the impact of high inflation and contribute to the supply chain crisis.
40 min read
The current patchwork of state laws taxing marketplace facilitators is complex, burdensome, and inefficient. States should work to resolve these issues and standardize the otherwise disparate requirements—with or without an inducement from Congress or the courts.
29 min read
Alabama’s 2025 legislative session mostly demonstrates a commitment to pro-growth tax policies that enhance competitiveness and reduce compliance burdens.
5 min read
The One Big Beautiful Bill’s changes to the taxation of international income have surprising implications for state codes, yielding tax increases and a revised tax base that, through quirks of state incorporation, bears very little resemblance to the federal base and almost nothing of its purpose.
10 min read
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 24 percent of combined state and local tax collections.
17 min read
With reports that Republican legislative leaders and Wisconsin Gov. Evers (D) have reached a budget deal for FY 2026 and 2027, it is worth examining two significant tax relief proposals included in the plan.
7 min read
Summer has arrived, and states are beginning to implement policy changes that were enacted during this year’s legislative session (or that have delayed effective dates or are being phased in over time).
28 min read
If Michiganders are interested in increasing the state’s spending on education or other priorities—and believe that current revenues are insufficient to support such an increase—there are several ways to do so without significantly affecting residents’ incentives to live and work in Michigan.
4 min read
The vaping industry has grown rapidly in recent decades, becoming a well-established product category and a viable alternative to cigarettes for those trying to quit smoking. US states levy a variety of tax structures on vaping products.
7 min read
The Senate’s version of the OBBB restores the benefit of avoiding the SALT deduction cap with PTETs for all pass-through businesses, while placing new limits on the extent of the workarounds.
6 min read
If Illinois’ budget is enacted as-is, Illinois will newly tax 50 percent of Global Intangible Low-Taxed Income (GILTI) as of tax year 2025, retroactively increasing tax burdens for US businesses and further hindering Illinois’ business tax competitiveness.
7 min read
In the United States, taxes are the single most expensive ingredient in beer. The tax burden accounts for more of the final price of beer than labor and materials combined—the many different layers of applicable taxes combining to total as much as 40.8 percent of the retail price.
6 min read