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HCR 2012

income tax; rate; reduction

57th Legislature - First Regular Session Introduced by Leo Biasiucci and 10 co-sponsors

Summary of HCR 2012: Income Tax Rate Reduction Purpose and IntentHCR 2012 is a concurrent resolution that proposes to reduce Arizona's individual income tax rate from the current 4

House Second Reading
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Bill Summary · HCR 2012

Summary of HCR 2012: Income Tax Rate Reduction

Purpose and Intent

HCR 2012 is a concurrent resolution that proposes to reduce Arizona's individual income tax rate from the current 4.5% to 4.0%. The primary intent of this legislation is to provide tax relief for Arizona residents by lowering the state's individual income tax burden.

Key Provisions

  • Reduces the state's individual income tax rate from 4.5% to 4.0% for all taxable income levels
  • The reduced 4.0% rate would apply starting in the 2026 tax year
  • Requires the Arizona Department of Revenue to adjust income tax withholding tables and forms to reflect the lower 4.0% rate

Impact and Affected Parties

  • This bill would directly impact all Arizona taxpayers who pay state individual income taxes, reducing their annual tax liability
  • It is estimated the 0.5 percentage point reduction would save Arizona taxpayers approximately $250 million per year
  • The lower tax rate may incentivize individuals and businesses to remain in or relocate to Arizona, potentially boosting economic growth and tax revenue in the long run

Procedural and Timeline Details

  • HCR 2012 was introduced in the Arizona House of Representatives on January 21, 2025
  • The bill is currently in the House Second Reading stage, meaning it has passed an initial committee review and is now being considered by the full state House
  • If passed by both the House and Senate, HCR 2012 would then be submitted to the Arizona Secretary of State, who would refer it to the 2026 general election ballot for final approval by voters
  • The reduced 4.0% individual income tax rate would take effect starting in the 2026 tax year if the concurrent resolution is ultimately approved

Compiled from official sources — confirm details with the bill’s official record.

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