Bill
HB 5759
Summary of HB 5759: Personal Income Tax Act OverviewHB 5759, the Personal Income Tax Act, is a proposed bill that aims to make significant changes to the state's personal income ta
HB 5759, the Personal Income Tax Act, is a proposed bill that aims to make significant changes to the state's personal income tax system. If enacted, this legislation would alter tax rates, deductions, and credits for individual taxpayers.
The primary components of HB 5759 include:
Tax Rate Changes: The bill proposes to restructure the state's personal income tax brackets and rates. It would reduce the top marginal tax rate from 5.99% to 4.75% while increasing the rates for lower-income brackets.
Standard Deduction Increase: The standard deduction for individual filers would be increased from $12,200 to $15,000. This change is intended to provide tax relief for low- and middle-income households.
Child Tax Credit: The bill introduces a new state-level child tax credit of $500 per eligible dependent child. This credit would be available to taxpayers with adjusted gross incomes below a certain threshold.
Elimination of Certain Deductions: The legislation would eliminate several existing deductions, including those for state and local taxes (SALT) and mortgage interest, in an effort to simplify the tax code.
If passed, HB 5759 would have the following potential impacts:
Taxpayer Savings: Households with incomes below $100,000 are expected to see an average tax reduction of $500-$800 per year, while higher-income taxpayers may see a smaller decrease or even a slight increase in their tax liability.
Revenue Effects: The bill is projected to reduce state tax revenue by approximately $1.2 billion annually, which could necessitate cuts to government programs or other budgetary adjustments.
Impact on Housing Market: The elimination of the mortgage interest deduction may have some dampening effect on the state's housing market, potentially making home ownership less affordable for some residents.
HB 5759 was introduced in the state legislature on January 21, 2025. On May 20, 2025, the bill was recommended by a legislative committee to be held for further study, indicating that additional review and debate may be necessary before a final vote is held.
Compiled from official sources — confirm details with the bill’s official record.
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