AK HB9

Establishes a new individual income tax in Alaska under AS 43.22, known as the "Education Funding Act," effective January 1, 2022.

Creates a progressive tax structure for residents and nonresidents with tax brackets starting at 2.5% on income above $10,300 for individuals and $20,600 for joint filers, increasing to 7% on income over $250,000.

Exempts the first $14,300 of individual income plus permanent fund dividends from taxation; allows an additional $4,000 deduction per dependent.

Permits individuals to direct the Department of Revenue to withhold all or part of their permanent fund dividend to pay individual income taxes owed.

Repeals certain prior tax provisions and requires the Department of Revenue to adopt regulations for implementation by the effective date.