HB 2918 Summary

• Reduces the primary corporate income tax rate from 5% to 4.93% for most business classifications effective immediately.

• Adjusts school district qualifying tax rates for 2025: reduces high school district rate from $1.5930 to $1.54185 and unified district rate from $3.1860 to $3.0837.

• Establishes a flat individual income tax rate of 2.5% for tax years 2022-2025, reducing to 2.47% beginning in 2026.

• Reduces estate and trust income tax rates to 2.5% for tax years 2022-2025, with further reduction to 2.47% for 2026 and beyond.

• Reduces Arizona small business taxpayer tax rate to 2.5% for tax years 2022-2025, decreasing to 2.47% starting in 2026.