SB 58

This bill reduces the number of individual income tax brackets from four to

three. Under current law, there are four income tax brackets for single individuals,

certain fiduciaries, heads of households, and married persons. The brackets are

indexed for inflation.

For single individuals, certain fiduciaries, and heads of households, the tax rate

is 3.54 percent of taxable income from zero to $11,970; 4.65 percent of taxable income

for income exceeding $11,970, but not exceeding $23,930; 6.27 percent of taxable

income exceeding $23,930, but not exceeding $263,480; and 7.65 percent of taxable

income exceeding $263,480.

For married individuals filing jointly, the tax rate is 3.54 percent of taxable

income from zero to $15,960; 4.65 percent of taxable income for income exceeding

$15,960, but not exceeding $31,910; 6.27 percent of taxable income for income

exceeding $31,910, but not exceeding $351,310; and 7.65 percent of taxable income

exceeding $351,310.

For married individuals filing separately, the tax rate is 3.54 percent of taxable

income from zero to $7,980; 4.65 percent of taxable income for income exceeding

$7,980, but not exceeding $15,960; 6.27 percent of taxable income for income

exceeding $15,960, but not exceeding $175,660; and 7.65 percent of taxable income

exceeding $175,660.

Under the bill, the individual income tax rates and brackets are as follows:

1. For single individuals, certain fiduciaries, and heads of households, the tax

rate is 3.54 percent of taxable income from zero to $23,930; 6.27 percent of taxable

income exceeding $23,930, but not exceeding $263,480; and 7.65 percent of taxable

income exceeding $263,480.

2. For married individuals filing jointly, the tax rate is 3.54 percent of taxable

income from zero to $31,910; 6.27 percent of taxable income for income exceeding

$31,910, but not exceeding $351,310; and 7.65 percent of taxable income exceeding

$351,310.

3. For married individuals filing separately, the tax rate is 3.54 percent of

taxable income from zero to $15,960; 6.27 percent of taxable income for income

exceeding $15,960, but not exceeding $175,660; and 7.65 percent of taxable income

exceeding $175,660.