Bill > HB1066

This bill amends the Arkansas state income tax law to increase the standard deduction for taxpayers. Currently, the standard deduction is $2,000 for the tax year 2014 and $2,200 for tax years beginning on or after January 1, 2015. The bill proposes to further increase the standard deduction to $4,400 per taxpayer for tax years beginning on or after January 1, 2026. For married couples, each spouse will be entitled to claim the same increased standard deduction. This change means that individuals and married couples will be able to reduce their taxable income by a larger amount, potentially resulting in lower tax liabilities and providing some financial relief to taxpayers in Arkansas. The standard deduction is a fixed amount that taxpayers can subtract from their total income before calculating the taxes owed, which can help reduce the overall tax burden for individuals and families.

Budget and Finance

https://www.arkleg.state.ar.us/Bills/Detail?id=hb1066&ddBienniumSession=2025%2F2025R