HB1926 Summary

• Adjusts income tax brackets for tax years beginning January 1, 2013, increasing rate thresholds across all six tax brackets (e.g., first bracket moves from $2,999 to $4,099; top bracket threshold increases from $25,000 to $34,000).

• Expands low-income tax credit eligibility beginning tax year 2014 with higher income thresholds for five taxpayer categories: single individuals ($12,801-$15,501), married filing jointly with fewer dependents ($23,601-$27,601), married filing jointly with two or more dependents ($26,201-$31,601), and head of household filers.

• Provides new low-income tax credit tables for tax years 2013 and later, with graduated credit amounts based on income ranges and filing status, replacing previous 2010 base-year tables.

• Increases standard deduction from $2,000 to $5,000 per taxpayer, with each spouse in a married couple entitled to claim $5,000.

• Effective for tax years beginning on or after January 1, 2013.