AR SB796

Eliminates the 1% income tax on the first $3,899 of net income, reducing it to 0% for individuals, trusts, and estates.

Increases the income threshold for the 2.5% tax bracket from $3,000 to $3,900.

Adjusts all subsequent tax brackets upward: the 3.5% bracket increases from $3,000 to $4,000; the 4.5% bracket increases from $6,000 to $7,800; the 6% bracket increases from $10,000 to $13,100; and the 7% bracket begins at $32,700 instead of $25,000.

Applies to tax years beginning on or after January 1, 2011.