The bill amends the standard deduction for income tax purposes in Arkansas, specifically updating the amounts allowed for taxpayers over several tax years. For the tax year beginning January 1, 2014, the standard deduction is set at $2,000 per taxpayer. This amount increases to $2,200 for tax years starting on or after January 1, 2015. Additionally, the bill introduces a new provision that establishes a further increase to $4,400 per taxpayer for tax years beginning on or after January 1, 2026.

In the case of married couples, the standard deduction follows the same structure, allowing each spouse to claim the same amounts as individual taxpayers. The bill removes the previous language that only specified deductions up to $2,200 and adds the new provision for the increased deduction of $4,400 starting in 2026. This change aims to provide greater tax relief for individuals and families in Arkansas.

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