Bill > HB2601

This bill introduces a new income tax exemption for minors in Arizona by amending existing tax laws to exclude the first $50,000 of wages earned by individuals under 18 years old from state income tax withholding and provide a complete income tax exemption for those same individuals. Specifically, the bill adds a new provision to Arizona tax law that allows minors to be exempt from state income tax for any taxable year where their Arizona gross income is $50,000 or less, regardless of the income source. The bill requires the Arizona Department of Revenue to establish a process for verifying eligibility for this exemption. This change is designed to provide a financial benefit to working teenagers and young workers by reducing their tax burden, and it will take effect for taxable years beginning after December 31, 2025. Additionally, the bill makes a minor administrative change by updating the heading of the relevant tax code article from "DEDUCTIONS" to "DEDUCTIONS AND EXEMPTIONS" to reflect the new provision.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/82425