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AL HB115
Bill
Status
4/6/2023
Primary Sponsor
Danny Garrett
Click for details
AI Summary
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Phases in a reduction of Alabama's top individual income tax rate from 5% to 4.95% over six tax years beginning in 2024.
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For single persons, heads of family, and married persons filing separately: top rate remains 5% through tax year 2023, then decreases by 0.01% annually from 2024-2027, reaching 4.95% in 2028 and thereafter.
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For married persons filing jointly: applies the same phase-in schedule with the same timeline and final rate of 4.95% in 2028 and thereafter.
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Maintains current lower tax brackets of 2% and 4% for both filing statuses at income thresholds below $3,000 (single) and $6,000 (joint).
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Becomes effective the first day of the third month following passage and approval by the Governor.
Legislative Description
Relating to individual income taxes; to amend Section 40-18-5, Code of Alabama 1975, to phase-in a reduction in the top tax rate from five percent to four and ninety-five hundredths percent.
Taxation and revenue, individual income tax rate reduced
Last Action
Referred to Committee to Senate Finance and Taxation Education
4/6/2023