AN ACT REQUIRING THE INDEXING OF INCOME THRESHOLDS FOR THE PERSONAL INCOME TAX.

HB 5772 requires the state to automatically adjust income tax thresholds annually based on changes in the Consumer Price Index (CPI). It directly affects taxpayers whose income falls near the boundary between tax brackets, preventing them from moving into higher tax brackets solely due to inflation. The key provision mandates that these thresholds be recalibrated each year using the CPI to reflect rising costs. This change ensures tax brackets stay aligned with inflation without requiring new annual legislation. The bill applies to the state's personal income tax system.