TAX/INCOME TAX: Reduces the rate of the tax levied on the net income of individuals and increases the amount of the standard deduction for all filers (OR DECREASE GF RV See Note)

HB 645 proposes changes to the state's individual income tax system, directly affecting all individual taxpayers. The bill gradually reduces the individual income tax rate, lowering it from 3% before 2027 to 1.75% by 2028 and thereafter. It also significantly increases the standard deduction for all filers over several years. For instance, the standard deduction for single individuals would rise from $12,500 for tax years 2025-2026 to $50,000 by tax year 2028. Starting in 2029, the standard deduction amounts would be adjusted annually based on the Consumer Price Index.