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HB2636 - 572R - I Ver
REFERENCE TITLE:
individual income tax; rate; increase
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HB 2636
Introduced by
Representatives
Sandoval: Abeytia, Aguilar, Austin, Connolly, Contreras L, Garcia, Liguori,
Luna-N�jera, M�rquez, Peshlakai, Simacek, Stahl Hamilton, Tsosie, Villegas
AN
ACT
amending section 43-1011, Arizona
Revised Statutes, as amended by Laws 2021, chapter 412, section 15; repealing
section 43-1011, Arizona Revised Statutes, as amended by laws 2021,
chapter 411, section 4; relating to individual income tax.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 43-1011, Arizona Revised
Statutes, as amended by Laws 2021, chapter 412, section 15, is amended to read:
START_STATUTE
43-1011.
Taxes and tax rates
A. There shall be levied, collected and paid for
each taxable year on the entire taxable income of every resident of this state
and on the entire taxable income of every nonresident that is derived from
sources within this state taxes determined in the following manner:
1. For taxable years beginning from and after
December 31, 1996 through December 31, 1997:
(a) In the case of a single person or a married
person filing separately:
If
taxable income is:
��������������
The tax is:
$0
� $10,000���������������������� 2.90% of taxable income
$10,001
� $25,000����������������� $290, plus 3.30% of the excess over $10,000
$25,001
� $50,000����������������� $785, plus 3.90% of the excess over $25,000
$50,001
� $150,000���������������� $1,760, plus 4.80% of the excess over $50,000
$150,001
and over������������������ $6,560, plus 5.17% of the excess over $150,000
(b) In the case of a married couple filing a joint
return or a single person who is a head of a household:
If
taxable income is:
��������������
The tax is:
$0
� $20,000���������������������� 2.90% of taxable income
$20,001
� $50,000����������������� $580, plus 3.30% of the excess over $20,000
$50,001
� $100,000���������������� $1,570, plus 3.90% of the excess over $50,000
$100,001
� $300,000��������������� $3,520, plus 4.80% of the excess over $100,000
$300,001
and over������������������ $13,120, plus 5.17% of the excess over $300,000
2. For taxable years beginning from and after
December 31, 1997 through December 31, 1998:
(a) In the case of a single person or a married
person filing separately:
If
taxable income is:
��������������
The tax is:
$0
� $10,000���������������������� 2.88% of taxable income
$10,001
� $25,000����������������� $288, plus 3.24% of the excess over $10,000
$25,001
� $50,000����������������� $774, plus 3.82% of the excess over $25,000
$50,001
� $150,000���������������� $1,729, plus 4.74% of the excess over $50,000
$150,001
and over������������������ $6,469, plus 5.10% of the excess over $150,000
(b) In the case of a married couple filing a joint
return or a single person who is a head of a household:
If
taxable income is:
��������������
The tax is:
$0
� $20,000���������������������� 2.88% of taxable income
$20,001
� $50,000����������������� $576, plus 3.24% of the excess over $20,000
$50,001
� $100,000���������������� $1,548, plus 3.82% of the excess over $50,000
$100,001
� $300,000��������������� $3,458, plus 4.74% of the excess over $100,000
$300,001
and over������������������ $12,938, plus 5.10% of the excess over $300,000
3. For taxable years beginning from and after
December 31, 1998 through December 31, 2005:
(a) In the case of a single person or a married
person filing separately:
If
taxable income is:
��������������
The tax is:
$0
� $10,000���������������������� 2.87% of taxable income
$10,001
� $25,000����������������� $287, plus 3.20% of the excess over $10,000
$25,001
� $50,000����������������� $767, plus 3.74% of the excess over $25,000
$50,001
� $150,000���������������� $1,702, plus 4.72% of the excess over $50,000
$150,001
and over������������������ $6,422, plus 5.04% of the excess over $150,000
(b) In the case of a married couple filing a joint
return or a single person who is a head of a household:
If
taxable income is:
��������������
The tax is:
$0
� $20,000���������������������� 2.87% of taxable income
$20,001
� $50,000����������������� $574, plus 3.20% of the excess over $20,000
$50,001
� $100,000���������������� $1,534, plus 3.74% of the excess over $50,000
$100,001
� $300,000��������������� $3,404, plus 4.72% of the excess over $100,000
$300,001
and over������������������ $12,844, plus 5.04% of the excess over $300,000
4. For taxable years
beginning from and after December 31, 2005 through December 31, 2006:
(a) In the case of a
single person or a married person filing separately:
If taxable income is:
��������������
The tax is:
$0 � $10,000���������������������� 2.73% of taxable income
$10,001 � $25,000����������������� $273,
plus 3.04% of the excess over $10,000
$25,001 � $50,000����������������� $729,
plus 3.55% of the excess over $25,000
$50,001 � $150,000���������������� $1,617,
plus 4.48% of the excess over $50,000
$150,001 and over������������������ $6,097,
plus 4.79% of the excess over $150,000
(b) In the case of a married couple filing a joint
return or a single person who is a head of a household:
If taxable
income is:
��������������
The tax is
:
$0 � $20,000���������������������� 2.73%
of taxable income
$20,001 � $50,000����������������� $546,
plus 3.04% of the excess over $20,000
$50,001 � $100,000���������������� $1,458,
plus 3.55% of the excess over $50,000
$100,001 �
$300,000��������������� $3,233, plus 4.48% of the excess over $100,000
$300,001 and over������������������ $12,193,
plus 4.79% of the excess over $300,000
5. Subject to subsections B and C of this section,
for taxable years beginning from and after December 31, 2006 through December
31, 2018:
(a) In the case of a single person or a married
person filing separately:
If taxable income is:
��������������
The tax is
:
$0 � $10,000���������������������� 2.59% of taxable income
$10,001 � $25,000����������������� $259, plus 2.88% of the excess over
$10,000
$25,001 � $50,000����������������� $691,
plus 3.36% of the excess over $25,000
$50,001 � $150,000���������������� $1,531,
plus 4.24% of the excess over $50,000
$150,001 and over������������������ $5,771,
plus 4.54% of the excess over $150,000
(b) In the case of a
married couple filing a joint return or a single person who is a head of a
household:
If taxable income is:
��������������
The
tax is:
$0 � $20,000���������������������� 2.59%
of taxable income
$20,001 � $50,000����������������� $518, plus 2.88% of the excess over
$20,000
$50,001 � $100,000���������������� $1,382,
plus 3.36% of the excess over $50,000
$100,001 �
$300,000��������������� $3,062, plus 4.24% of the excess over $100,000
$300,001 and over������������������ $11,542,
plus 4.54% of the excess over $300,000
6. Subject to subsections D and E of this section,
for taxable years beginning from and after December 31, 2018 through December
31, 2021:
(a) In the case of a single person or a married
person filing separately:
If taxable income is:
��������������
The tax is:
$0 � $26,500���������������������� 2.59% of taxable income
$26,501 � $53,000����������������������� $686, plus 3.34% of
the amount
����������������������������������� over $26,500
$53,001 � $159,000���������������� $1,571, plus 4.17% of the
����������������������������������� amount over $53,000
$159,001 and over������������������ $5,991, plus 4.50% of the
amount
����������������������������������� over $159,000
(b) In the case of a married couple filing a joint
return or a single person who is a head of a household:
If taxable income is:
��������������
The tax is:
$0 � $53,000���������������������� 2.59% of taxable income
$53,001 � $106,000���������������� $1,373, plus 3.34% of the
amount��������� ����������������������������� over $53,000
$106,001 � $318,000��������������� $3,143, plus 4.17% of the
amount
����������������������������������� over $106,000
$318,001 and over������������������ $11,983,
plus 4.50% of the amount over $318,000
7. Subject to
subsections
subsection
E
and F
of this section, for
taxable years beginning from and after December 31, 2021 through December 31 of
the year in which notice is provided to the department pursuant to section 43-243,
subsection A or subsection B, paragraph 1:
(a) In the case of a single person or a married
person filing separately:
If taxable income is:
��������������
The tax is:
$0 � $27,272���������������������� 2.55% of taxable income
$27,273 and over������������������� $695, plus 2.98% of the
amount
����������������������������������� over $27,272
(b) In the case of a married couple filing a joint
return or a single person who is a head of a household:
If taxable income is:
��������������
The tax is:
$0 � $54,544���������������������� 2.55% of taxable income
$54,545 and over������������������� $1,391,
plus 2.98% of the amount over $54,544
8. Subject to
subsections
subsection
E
and F
of this section, for
taxable years beginning from and after December 31 of the year in which notice
is provided to the department pursuant to section 43-243, subsection A or
subsection B, paragraph 1 through December 31 of the year in which notice is
provided to the department pursuant to section 43-243, subsection B,
paragraph 2:
(a) In the case of a single person or a married
person filing separately:
If taxable income is:
��������������
The tax is:
$0 � $27,272���������������������� 2.53% of taxable income
$27,273 and over������������������� $690, plus 2.75% of the
amount
����������������������������������� over $27,272
(b) In the case of a married couple filing a joint
return or a single person who is a head of a household:
If taxable income is:
��������������
The tax is:
$0 � $54,544���������������������� 2.53% of taxable income
$54,545 and over������������������� $1,380,
plus 2.75% of the amount over $54,544
9.
Subject to subsection F of this
section,
For taxable years beginning from and after December 31
,
of the year in which notice is provided to the
department pursuant to section 43-243, subsection B, paragraph 2
2022 through December 31, 2026
, the tax is 2.5% of
taxable income.
10. For taxable years beginning from
and after December 31, 2026:
If taxable
income is:
��������������
The tax is:
$0 � $1,000,000������������������� 2.5% of taxable income
$1,000,001
and over���������������� $25,000, plus 8% of the amount over $1,000,000
B. For the taxable year beginning from and after
December 31, 2014 through December 31, 2015, the department shall adjust the
income dollar amounts for each rate bracket prescribed by subsection A,
paragraph 5 of this section according to the average annual change in the
metropolitan Phoenix consumer price index published by the United States
department of labor, bureau of labor statistics. The revised dollar
amounts shall be raised to the nearest whole dollar. The income
dollar amounts for each rate bracket may not be revised below the amounts
prescribed in the prior taxable year.
C. For each taxable year beginning from and after
December 31, 2015 through December 31, 2018, the department shall adjust the
income dollar amounts for each rate bracket prescribed by subsection A,
paragraph 5 of this section according to the average annual change in the
metropolitan Phoenix consumer price index published by the United States
department of labor, bureau of labor statistics. The revised dollar
amounts shall be raised to the nearest whole dollar. The income
dollar amounts for each rate bracket may not be revised below the amounts
prescribed in the prior taxable year.
D. For each taxable year beginning from and after
December 31, 2019 through December 31, 2021, the department shall adjust the
income dollar amount for each rate bracket prescribed by subsection A,
paragraph 6 of this section according to the average annual change in the
metropolitan Phoenix consumer price index published by the United States
department of labor, bureau of labor statistics. The revised dollar
amounts shall be raised to the nearest whole dollar. The income
dollar amounts for each rate bracket may not be revised below the amounts
prescribed in the prior taxable year.
E. For
each
the
taxable
year beginning from and after December 31, 2021, the department shall adjust
the income dollar amount for each rate bracket prescribed by subsection A,
paragraphs 7 and 8 of this section, as applicable, according to the average
annual change in the metropolitan Phoenix consumer price index published by the
United States department of labor, bureau of labor statistics. The
revised dollar amounts shall be raised to the nearest whole
dollar. The income dollar amounts for each rate bracket may not be
revised below the amounts prescribed in the prior taxable year.
END_STATUTE
Sec. 2.
Repeal
Section 43-1011, Arizona Revised
Statutes, as amended by Laws 2021, chapter 411, section 4, is repealed.
Sec. 3.
Requirements for enactment;
two-thirds vote
Pursuant
to article IX, section 22, Constitution of Arizona, this act is effective only
on the affirmative vote of at least two-thirds of the members of each house of
the legislature and is effective immediately on the signature of the governor
or, if the governor vetoes this act, on the subsequent affirmative vote of at
least three-fourths of the members of each house of the legislature.