The bill amends the Arkansas Code regarding the standard deduction for income tax purposes. It increases the standard deduction amounts for taxpayers and married couples over several tax years. Specifically, for the tax year beginning January 1, 2014, the standard deduction remains at two thousand dollars ($2,000) per taxpayer. For tax years starting on or after January 1, 2015, the deduction increases to two thousand two hundred dollars ($2,200) per taxpayer.

Additionally, the bill introduces a new standard deduction amount for tax years beginning on or after January 1, 2026, which will be four thousand four hundred dollars ($4,400) per taxpayer. This increase applies equally to married couples, allowing each spouse to claim the same standard deduction amounts as individual taxpayers. The bill effectively updates the existing law by removing outdated figures and inserting new, higher deduction amounts for future tax years.

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)