Tax slab 2023

Introduction As legislative sessions wind down in many states, it is evident that 2023 marks a third consecutive year of substantial state tax reform and relief. Since 2021, 24 states have cut individual income tax rates (including 22 reductions to top marginal rates), 13 states have cut corporate income tax rates, two have cut sales tax rates, and many more have made structural improvements like repealing capital stock taxes, adopting permanent full expensing, raising nonresident filing and withholding thresholds, improving treatment of business tangible property, eliminating throwback and throwout rules, and more. After the dramatic rate reductions and reforms in 2021 and 2022, many expected a lull in 2023. Those expectations have been shattered. Eight states adopted individual income tax rate reductions: Arkansas, Indiana, Kentucky, Montana, Nebraska, North Dakota, Utah, and West Virginia. Additionally, Michigan triggered a The table below shows where states’ top marginal income tax rates stood entering 2021—before any retroactive rate changes for that year—and what was implemented for 2022 and 2023. The table also shows anticipated 2024 rates, reflecting any rate changes already adopted by legislatures, and notes any further future rate reductions either scheduled in statute or subject to revenue triggers. 22 States Have Cut Top Marginal Individual Income Tax Rates Since 2021 Top Marginal Rates Entering 2021, for 2022-2024, and Subsequent Scheduled Reductions State Rat...

Income Tax slab 2023-2024 details and highlights: New income tax regime has seen a major revamp in the income tax slab rates for 2023-24. The basic exemption limit under the new income tax regime has been hiked to Rs 3 lakh. The income tax rebate limit available for salaried and individual taxpayers under the new income tax regime has been hiked to Rs 7 lakh from the present Rs 5 lakh. See the table below to know the income tax slabs 2023 for the new income tax regime. These were the income rates for 2022-23 under the new tax regime 1. Up to Rs 2.5 lakh income there is 0% or NIL tax 2. From Rs 2.5 lakh to Rs 5 lakh the tax rate is 5% 3. From Rs 5 lakh to Rs 7.5 lakh the tax rate is 10% 4. From Rs 7.5 lakh to Rs 10 lakh the tax rate is 15% 5. From Rs 10 lakh to Rs 12.5 lakh the tax rate is 20% 6. From 12.5 lakh to Rs 15 lakh the tax rate is 25% Salary income before any deductions / exemptions Existing regime (Old Regime) Current new regime (FY23) Proposed new regime (FY24) 5,00,000 - - - 5,50,000 - 18,200 - 6,00,000 - 23,400 - 7,00,000 - 33,800 - 7,50,000 23,400 39,000 - 10,00,000 75,400 78,000 54,600 15,00,000 2,10,660 1,95,000 1,45,600 30,00,000 6,78,600 6,63,000 6,08,400 70,00,000 21,19,260 21,02,100 20,42,040 1,50,00,000 50,85,990 50,68,050 50,05,260 5,00,00,000 1,91,78,250 1,91,58,750 1,90,90,500 5,50,00,000 2,31,56,562 2,31,35,190 2,10,40,500 6,00,00,000 2,52,93,762 2,52,72,390 2,29,90,500 Income Tax Live: Highlights of major announcementsFM Nirmala Sitharaman has ann...

Income Tax slab 2023-2024 details and highlights: New income tax regime has seen a major revamp in the income tax slab rates for 2023-24. The basic exemption limit under the new income tax regime has been hiked to Rs 3 lakh. The income tax rebate limit available for salaried and individual taxpayers under the new income tax regime has been hiked to Rs 7 lakh from the present Rs 5 lakh. See the table below to know the income tax slabs 2023 for the new income tax regime. These were the income rates for 2022-23 under the new tax regime 1. Up to Rs 2.5 lakh income there is 0% or NIL tax 2. From Rs 2.5 lakh to Rs 5 lakh the tax rate is 5% 3. From Rs 5 lakh to Rs 7.5 lakh the tax rate is 10% 4. From Rs 7.5 lakh to Rs 10 lakh the tax rate is 15% 5. From Rs 10 lakh to Rs 12.5 lakh the tax rate is 20% 6. From 12.5 lakh to Rs 15 lakh the tax rate is 25% Salary income before any deductions / exemptions Existing regime (Old Regime) Current new regime (FY23) Proposed new regime (FY24) 5,00,000 - - - 5,50,000 - 18,200 - 6,00,000 - 23,400 - 7,00,000 - 33,800 - 7,50,000 23,400 39,000 - 10,00,000 75,400 78,000 54,600 15,00,000 2,10,660 1,95,000 1,45,600 30,00,000 6,78,600 6,63,000 6,08,400 70,00,000 21,19,260 21,02,100 20,42,040 1,50,00,000 50,85,990 50,68,050 50,05,260 5,00,00,000 1,91,78,250 1,91,58,750 1,90,90,500 5,50,00,000 2,31,56,562 2,31,35,190 2,10,40,500 6,00,00,000 2,52,93,762 2,52,72,390 2,29,90,500 Income Tax Live: Highlights of major announcementsFM Nirmala Sitharaman has ann...

Introduction As legislative sessions wind down in many states, it is evident that 2023 marks a third consecutive year of substantial state tax reform and relief. Since 2021, 24 states have cut individual income tax rates (including 22 reductions to top marginal rates), 13 states have cut corporate income tax rates, two have cut sales tax rates, and many more have made structural improvements like repealing capital stock taxes, adopting permanent full expensing, raising nonresident filing and withholding thresholds, improving treatment of business tangible property, eliminating throwback and throwout rules, and more. After the dramatic rate reductions and reforms in 2021 and 2022, many expected a lull in 2023. Those expectations have been shattered. Eight states adopted individual income tax rate reductions: Arkansas, Indiana, Kentucky, Montana, Nebraska, North Dakota, Utah, and West Virginia. Additionally, Michigan triggered a The table below shows where states’ top marginal income tax rates stood entering 2021—before any retroactive rate changes for that year—and what was implemented for 2022 and 2023. The table also shows anticipated 2024 rates, reflecting any rate changes already adopted by legislatures, and notes any further future rate reductions either scheduled in statute or subject to revenue triggers. 22 States Have Cut Top Marginal Individual Income Tax Rates Since 2021 Top Marginal Rates Entering 2021, for 2022-2024, and Subsequent Scheduled Reductions State Rat...