AZ HB2601

Exempts the first $50,000 of wages paid to employees under 18 years of age from income tax withholding requirements under section 43-403.

Creates a new income tax exemption allowing individuals under 18 years of age with Arizona gross income of $50,000 or less to be exempt from state income tax, regardless of income source or nature.

Requires the Department of Revenue to establish a process for verifying eligibility for the under-18 income tax exemption.

Changes the article heading of Title 43, Chapter 10, Article 4 from "DEDUCTIONS" to "DEDUCTIONS AND EXEMPTIONS."

Applies to taxable years beginning after December 31, 2025.