Bill
HB 5760
Bill Summary: HB 5760 - Personal Income Tax Act Bill OverviewHB 5760, also known as the Personal Income Tax Act, is a proposed legislation that aims to reform the personal income t
HB 5760, also known as the Personal Income Tax Act, is a proposed legislation that aims to reform the personal income tax system in the state. The bill was introduced on January 21, 2025, and is currently being held for further study by the relevant committee.
The main provisions of HB 5760 include:
Tax Rate Reduction: The bill proposes to gradually reduce the top marginal personal income tax rate from the current 5.5% to 4% over a 3-year period.
Standard Deduction Increase: The standard deduction for individual filers would be increased from the current $12,000 to $15,000, and for joint filers from $24,000 to $30,000.
Child Tax Credit: The bill would introduce a new $500 per-child tax credit for families with dependent children under the age of 17.
Retirement Income Exemption: The bill seeks to exempt the first $50,000 ($100,000 for joint filers) of retirement income, such as pensions and 401(k) distributions, from personal income tax.
If enacted, HB 5760 could have the following impacts:
Tax Savings for Residents: The combination of the tax rate reduction, standard deduction increase, and retirement income exemption could result in significant tax savings for many individual and household taxpayers in the state.
Incentive for Retirees: The retirement income exemption may make the state more attractive for retirees, potentially leading to an increase in the elderly population and associated economic and social effects.
Potential Revenue Implications: The tax cuts and credits proposed in the bill could lead to a decrease in state personal income tax revenue, which may need to be addressed through spending reductions or other revenue-generating measures.
HB 5760 is currently being held for further study by the committee, meaning its progress has been temporarily halted. The next steps would likely involve additional hearings, public input, and potential amendments before the committee decides whether to recommend the bill for a full legislative vote.
Compiled from official sources — confirm details with the bill’s official record.
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