HB 1206 Summary

• Establishes new personal income tax rates for taxable years beginning January 1, 2024, through December 31, 2025, with reduced rates ranging from 0.25% to 4.75% on various income brackets for single and married filers, eliminating federal income tax deductions.

• Modifies tax rates effective January 1, 2026, with a 0.0% tax on the first income bracket for both single individuals and married couples filing jointly, with top marginal rates of 4.75%.

• Maintains existing corporate income tax rate of 4% for taxable years beginning after December 31, 2021.

• No deduction for federal income taxes paid is allowed for taxpayers under the new rate structures in subsections C and D.

• Becomes effective November 1, 2025.