Increasing the Income Tax

• Budget and Finance
• 01/16/2025

This bill changes, beginning in 2026, the current income tax brackets by increasing the threshold amount of income subject to the current tax rates of 5.8%, 6.75% and 7.15%. The bill adds 3 new income tax brackets and imposes tax rates of 7.52%, 7.15% and 8.2% in those new brackets. As under current law, the income tax brackets are indexed to the Chained Consumer Price Index as published by the United States Department of Labor, Bureau of Labor Statistics.