The bill amends the Arkansas Code regarding the standard deduction for income tax purposes. It establishes a new structure for the standard deduction amounts over the coming years. Specifically, for the tax year beginning January 1, 2014, the standard deduction is set at $2,000 per taxpayer. For tax years starting on or after January 1, 2015, this amount increases to $2,200. Additionally, the bill introduces a significant increase for tax years beginning on or after January 1, 2026, raising the standard deduction to $4,400 per taxpayer.

For married couples, the bill mirrors the changes made for individual taxpayers. Each spouse will be entitled to the same standard deduction amounts: $2,000 for the tax year beginning January 1, 2014, and $2,200 for tax years starting on or after January 1, 2015. The new provision also includes the increase to $4,400 for tax years beginning on or after January 1, 2026. The bill effectively updates the standard deduction to provide greater tax relief to individuals and married couples in Arkansas.

Statutes affected:
Old version HB1066 V2 - 2-19-2025 11:07 AM: 26-51-430(b)
Old version HB1066 Original - 12-12-2024 10:39 AM: 26-51-430(b)
HB 1066: 26-51-430(b)