AZ HB2636

Increases Arizona's individual income tax rate from the current flat 2.5% to 8% on taxable income exceeding $1,000,000 for taxable years beginning after December 31, 2026.

Maintains the 2.5% flat tax rate on the first $1,000,000 of taxable income for all filers.

Creates a two-tier tax structure where income over $1,000,000 is taxed at $25,000 plus 8% of the amount exceeding $1,000,000.

Requires a two-thirds vote of each house of the legislature for enactment under Arizona Constitution Article IX, Section 22.

Repeals the alternative version of the income tax statute (Laws 2021, chapter 411, section 4) and takes effect immediately upon the governor's signature.