Republican gains in states could mean an end to new millionaire taxes and possibly rate cuts.
In Pictures: 10 Highest State Income Tax Rates For 2011
Do you know if your state income taxes are going up or down next year? The results of the midterm elections provide some clues and one clear answer--wealthy residents of no-income-tax Washington State won't be facing a new tax, since voters there nixed a ballot initiative, backed by Bill Gates Sr. (and his son Bill Gates, the cofounder of Microsoft ( MSFT - news - people )) that would have imposed a 9% tax on income over $1 million per couple. (The initiative was opposed by Microsoft itself, Microsoft CEO Steve Ballmer, Amazon.com ( AMZN - news - people ) CEO Jeff Bezos, and such major corporations as Boeing ( BA - news - people ) and Weyerhaeuser ( WY - news - people ).)
Clues as to what might be in store for tax rates elsewhere come from Republicans' sweeping gains in state capitols and from the promises of some of the governors-elect. Pay close attention if you're thinking of retiring to another state, if you live in a multistate metropolis, or if you're self-employed, independently wealthy, or otherwise have options as to where you live. Before you make any retirement moves, check out the special rates some states offer retirees. For more tips for tax refugees, click here.
So just what have the new governors-elect been saying?
--Sam Brownback, Republican Governor-elect in Kansas (replacing a Democrat) is talking about using his party's big majorities to cut the state's income tax rate, which now tops out at 6.45%.
-- Maine's Republican Governor-elect Paul LePage has said he'd like to cut the state's top income tax rate from 8.5% to 5%. (Maine's legislature flipped from Democratic to Republican too.)
--Illinois incumbent Democratic Governor Pat Quinn (who narrowly beat Republican Bill Brady) is calling to increase the state's flat 3% income tax, but Democratic House Speaker Michael Madigan is skeptical that a tax hike has enough support to pass.
To be sure, Dayton's tax the rich rhetoric echoes what's happened in other states during the last three years of state budget crisis and tax hikes. Just this past January, Oregon voters approved (over the opposition of Nike ( NKE - news - people ) founder Philip Knight) an increase in the tax on income over $500,000 per couple from 9% to 11%.
But with Republicans increasing their control of both governorships and state houses (they will have single party control in 20 states), that trend has likely peaked.
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