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

SB 123 (2025) would require the state to automatically adjust income thresholds for personal income tax brackets based on the annual inflation rate. This change would directly affect taxpayers whose income falls within specific tax brackets, preventing "bracket creep" as wages rise with inflation. The key mechanism is linking threshold updates to the official inflation rate, eliminating the need for annual legislative action to adjust tax brackets. If passed, this would ensure that middle- and lower-income earners maintain their tax bracket placement without needing new legislation each year.