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Trucking Laws · Multi-state ·

Election Results: Colorado, North Carolina, Iowa and Washington Voters Change State Income Tax Rules

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Voters in four states changed how much of a paycheck the state can take. The decisions came on Election Day, Nov. 3, Land Line reports.

Colorado

Colorado has had a flat income tax of 4.4% for all taxpayers. Voters approved Amendment 87, which moves the state to a graduated income tax, with rates from 3.7% to 8.4%:

Everyone else will keep paying the current rate, according to Land Line. Voters rejected a competing measure, Proposition 136, that called for capping income tax rates at 4.4%.

North Carolina

North Carolina voters capped the top income tax rate lawmakers can set at 3.5%. The previous cap was 7%.

Iowa

Iowa voters approved Amendment 1, a change to the state constitution. Lawmakers now need a two-thirds vote in both chambers of the legislature to raise individual or corporate income tax rates. That means at least 67 votes in the 100-member House. The amendment does not raise or lower taxes; it makes certain tax increases harder to pass.

Washington

Washington voters banned a personal income tax outright. They also repealed a 9.9% tax on income over $1 million that was set to start in 2028.

Why it matters to truckers

For an owner-operator, every dollar the state takes is a dollar not going to fuel, tires or the truck payment. Land Line notes that tolls, fuel taxes and registration fees already take a bite, and where a trucker lives can affect how much of a paycheck he keeps. Truckers who live in these states may want to check how the changes affect next year's withholding or estimated payments. The owner-operator profit calculator can help with the bigger picture.

A question for readers

Did your state's vote help or hurt your bottom line?

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