HB 1788 Summary

• Reduces individual income tax rates effective January 1, 2026, to a flat 4.75% for all filing statuses, replacing the previous graduated rate structure.

• For tax years 2024-2025 (transitional period), implements reduced graduated rates ranging from 0.25% to 4.75%, with modified tax brackets.

• Increases standard deduction amounts for 2024-2025 and sets new amounts for 2026 and beyond (e.g., $10,350 for single filers in 2026, up from current levels).

• Eliminates the federal income tax deduction for individual taxpayers beginning January 1, 2024.

• Effective date is January 1, 2026, with transitional provisions for tax years 2024-2025.