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AZ HB4095

AZ HB4095
Income tax; additional rate; education


summary

Introduced
02/11/2026
In Committee
Crossed Over
Passed
Dead

Introduced Session

Fifty-seventh Legislature - Second Regular Session (2026)

Bill Summary

AN ACT amending sections 15-977 and 41-5721, Arizona Revised Statutes; repealing section 43-1011, Arizona Revised Statutes, as amended by laws 2021, chapter 411, section 4; amending Title 43, chapter 10, article 2, Arizona Revised Statutes, by adding section 43-1015; relating to individual income tax.

AI Summary

This bill establishes a new, additional income tax rate for individuals in Arizona, effective for taxable years beginning after December 31, 2026, which will be levied at 3.5% on federal adjusted gross income exceeding $250,000 for single filers or married filing separately, and $500,000 for married couples filing jointly or heads of household. The revenues generated from this additional tax rate will be split equally, with 50% going to the Classroom Site Fund, which supports various school site programs like class size reduction and teacher compensation, and the other 50% going to the Emergency Deficiencies Correction Fund, which provides money to school districts for urgent facility needs. The bill also repeals an existing section of Arizona law related to income tax and makes conforming changes to sections governing the Classroom Site Fund and the Emergency Deficiencies Correction Fund to reflect the new revenue source, requiring a two-thirds vote for enactment.

Committee Categories

Budget and Finance

Sponsors (18)

Last Action

House read second time (on 02/12/2026)

bill text


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