DE HB240

Increases estimated tax payment threshold from $400 to $800 effective for tax periods after December 31, 2017, with provisions for automatic inflation adjustment.

Raises income tax rates across all existing brackets by 0.15 to 0.4 percentage points and creates a new top tax bracket of 6.95% on income exceeding $150,000.

Increases standard deduction from $3,250 to $5,000 for single filers and from $6,500 to $10,000 for joint filers, while eliminating itemized deductions.

Reduces personal income tax credit from $110 to $85 per exemption and raises the age threshold for additional senior citizen credits from 60 to 65 in one-year increments over five years (2018-2022).

Increases the pension and retirement income exclusion threshold eligibility age from 60 to 65 in one-year increments over five years, with maximum exclusion of $12,500.