States See Chance to Fix Tax ‘Bracket Creep’ as Inflation Persists

Policy makers in a handful of states are seeing an opportune moment to adjust their personal income tax brackets to inflation as the financial stress of housing costs and high grocery bills continues.

Lawmakers in New Jersey and Connecticut have gotten lukewarm receptions from their executive leaders, while governors in Hawaii and Puerto Rico have been more eager to embrace—and are themselves pitching—these tax changes to help residents absorb significant increases in the cost of living.

If any are successful, they would join the large majority of states. Currently, just 14 states don’t index ...