- The plan remains revenue neutral while protecting the things that matter most like K-12 education, public safety and our most vulnerable.
- The plan preserves exemptions for the blind and seniors (65+) as well as the exemption for enhanced medical deduction, protecting those with significant, ongoing medical costs.
Prioritizing Families and Charitable Giving
- The plan establishes a new child tax credit equal to $100 per dependent child, providing additional tax relief to families.
- The plan also allows taxpayers who take the standard deduction to subtract 25% of annual charitable giving, encouraging charitable giving.
So who are the big winners under this plan?
- Taxpayers: Under the historic plan, Arizonans will have the simplest income tax code in state history, paired with marginal tax decreases for most income brackets. The greatest relief will go to middle class and low-income earners. Increased standard deductions will also contribute to a simpler, fairer and flatter tax code.
- Families: Families will receive a new $100 per child tax credit, which will mirror a similar tax credit at the federal level.
- Charities and nonprofits: The plan creates a new charitable tax credit, incentivizing donations to organizations that help those most in need.
- Teachers and students, law enforcement personnel and our most vulnerable: By remaining revenue neutral, the plan protects critical investments in K-12 schools, law enforcement salaries, infrastructure, child safety, programs to provide a hand-up to those in need and more.
- Arizona's Rainy Day Fund: As part of the budget agreement, Arizona will invest $542 million into the Rainy Day Fund — bringing the fund to a record $1 billion and ensuring our state is prepared for the inevitable and unexpected.
View full details of the budget HERE.