Publications
State Earned Income Tax Credits Will Support Families and Workers in 2027
• By Neva Butkus
Nearly two-thirds of states (plus the District of Columbia and Puerto Rico) have an Earned Income Tax Credit. These credits boost low-paid workers’ incomes and offset some of the taxes they pay, helping working class families achieve greater economic security.
State Child Tax Credits Will Boost Financial Security for Families and Children in 2027
• By Neva Butkus
Sixteen states provide Child Tax Credits to reduce poverty, boost economic security, and invest in children. State lawmakers have several options to maximize the impact of Child Tax Credits.
State-by-State Tax Expenditure Reports
• By ITEP Staff
Below is a list of tax expenditure reports published in the states.
Re-Examining 529 Plans: Stopping State Subsidies to Private Schools After New Trump Tax Law
• By Miles Trinidad, Nick Johnson
The 2025 federal tax law risks making 529 plans more costly for states by increasing tax avoidance and allowing wealthy families to use these funds for private and religious K-12 schools.
The Wealth Proceeds Tax: A Simple Way for States to Tax the Wealthy
• By Sarah Austin, Carl Davis
Taxing the proceeds generated by wealth through a new Wealth Proceeds Tax is a simple way for states to raise billions in new revenue and improve the fairness of their tax systems.
The Potential of Local Child Tax Credits to Reduce Child Poverty
• By Kamolika Das, Aidan Davis, Galen Hendricks, Rita Jefferson
Local governments have a critical role to play in reducing child poverty. Local Child Tax Credits could provide large tax cuts to families at the bottom of the income scale, lessening the overall regressivity of state and local tax systems.
Quite Some BS: Expanded ‘QSBS’ Giveaway in Trump Tax Law Threatens State Revenues and Enriches the Wealthy
• By Sarah Austin, Nick Johnson
States should decouple from the federal Qualified Small Business Stock (QSBS) exemption.
State Earned Income Tax Credits Support Families and Workers in 2025
• By Neva Butkus
Nearly two-thirds of states now have an Earned Income Tax Credit (EITC). Momentum continues to build on these credits that boost low-paid workers’ incomes and offset some of the taxes they pay, helping lower-income families achieve greater economic security.
State Child Tax Credits Boosted Financial Security for Families and Children in 2025
• By Neva Butkus
Child Tax Credits (CTCs) are effective tools to bolster the economic security of low- and middle-income families and position the next generation for success.
How Will the Trump Megabill Change Americans’ Taxes in 2026?
• By Steve Wamhoff, Michael Ettlinger, Carl Davis, Jon Whiten
The megabill will raise taxes on the poorest 40 percent of Americans, barely cut them for the middle 20 percent, and cut them tremendously for the wealthiest Americans next year.
Analysis of Tax Provisions in the Trump Megabill as Signed into Law: National and State Level Estimates
• By Steve Wamhoff, Carl Davis, Joe Hughes, Jessica Vela
President Trump has signed into law the tax and spending “megabill” that largely favors the richest taxpayers and provides working-class Americans with relatively small tax cuts that will in many cases be more than offset by Trump's tariffs.
Analysis of Tax Provisions in the House Reconciliation Bill: National and State Level Estimates
• By Carl Davis, Jessica Vela, Joe Hughes, Steve Wamhoff
The poorest fifth of Americans would receive 1 percent of the House reconciliation bill's net tax cuts in 2026 while the richest fifth of Americans would receive two-thirds of the tax cuts. The richest 5 percent alone would receive a little less than half of the net tax cuts that year.
Trump 2025 Tax Law: Research and Resources
• By ITEP Staff
Want to know more about the tax and spending megabill that President Trump recently signed into law? We've got you covered.
A Revenue Analysis of Worldwide Combined Reporting in the States
• By Carl Davis, Matthew Gardner, Michael Mazerov
Universal adoption of mandatory worldwide combined reporting would boost state corporate income tax revenues by roughly 14 percent. Thirty-eight states and the District of Columbia would experience revenue increases totaling $19.1 billion.
Trump’s Plan to Extend His 2017 Tax Provisions: Updated National and State-by-State Estimates
• By Steve Wamhoff
Trump’s plan to make most of the temporary provisions of his 2017 tax law permanent would disproportionately benefit the richest Americans. This includes all major provisions except the $10,000 cap on deductions for state and local taxes (SALT) paid.
A Distributional Analysis of Kamala Harris’ Tax Plan
• By Steve Wamhoff
The tax proposals from Vice President Kamala Harris would, on average, lead to a tax increase for the richest 1 percent of Americans and a tax cut for all other income groups.
A Distributional Analysis of Donald Trump’s Tax Plan
• By Carl Davis, Erika Frankel, Galen Hendricks, Joe Hughes, Matthew Gardner, Michael Ettlinger, Steve Wamhoff
Former President Donald Trump has proposed a wide variety of tax policy changes. Taken together, these proposals would, on average, lead to a tax cut for the richest 5 percent of Americans and a tax increase for all other income groups.
Extending Temporary Provisions of the 2017 Trump Tax Law: Updated National and State-by-State Estimates
• By Steve Wamhoff
The TCJA Permanency Act would make permanent the provisions of the Tax Cuts and Jobs Act of 2017 that are set to expire at the end of 2025. The legislation would disproportionately benefit the richest Americans. Below are graphics for each state that show the effects of making TCJA permanent across income groups. See ITEP’s […]
State Earned Income Tax Credits Support Families and Workers in 2024
• By Neva Butkus
Nearly two-thirds of states (31 plus the District of Columbia and Puerto Rico) have an Earned Income Tax Credit. These credits boost low-paid workers’ incomes and offset some of the taxes they pay, helping lower-income families achieve greater economic security.
State Child Tax Credits Boosted Financial Security for Families and Children in 2024
• By Neva Butkus
Fifteen states plus the District of Columbia provide Child Tax Credits to reduce poverty, boost economic security, and invest in children. This year alone, lawmakers in three states – Colorado, New York, and Utah – expanded their Child Tax Credits while lawmakers in the District of Columbia created a new credit that will take effect in 2025.
Tax Payments by Undocumented Immigrants
• By ITEP Staff
Undocumented immigrants paid $96.7 billion in federal, state, and local taxes in 2022. Providing access to work authorization for undocumented immigrants would increase their tax contributions both because their wages would rise and because their rates of tax compliance would increase.
Improving Refundable Tax Credits by Making Them Immigrant-Inclusive
• By Emma Sifre, Marco Guzman
Undocumented immigrants who work and pay taxes but don't have a valid Social Security number for either themselves or their children are excluded from federal EITC and CTC benefits. Fortunately, several states have stepped in to ensure undocumented immigrants are not left behind by the gaps in the federal EITC and CTC. State lawmakers should continue to ensure that immigrants who are otherwise eligible for these tax credits receive them.
States Should Enact, Expand Mansion Taxes to Advance Fairness and Shared Prosperity
• By Carl Davis, Erika Frankel
The report was produced in partnership with the Center on Budget and Policy Priorities and co-authored by CBPP’s Deputy Director of State Policy Research Samantha Waxman.[1] Click here to use our State Mansion Tax Estimator A historically large share of the nation’s wealth is concentrated in the hands of a few, a reality glaring in […]
Is California Really a High-Tax State?
• By Carl Davis, Eli Byerly-Duke
Key Findings For families of modest means, California is not a high-tax state. California taxes are close to the national average for families in the bottom 80 percent of the income scale. For the bottom 40 percent of families, California taxes are lower than states like Florida and Texas. The highest earners usually pay higher […]
Fairness Matters: A Chart Book on Who Pays State and Local Taxes
• By ITEP Staff
State and local tax codes can do a lot to reduce inequality. But they add to the nation’s growing income inequality problem when they capture a greater share of income from low- or moderate-income taxpayers. These regressive tax codes also result in higher tax rates on communities of color, further worsening racial income and wealth divides.
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