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Arizona To See Tax Break Next April
After decades of unrecognized inflation, Arizonans will see a tax break when filing next April. The new law passed earlier this year will allow taxpayers a $50 increase in personal exemptions. But, it’s not as much as you might think.
The Arizona Department of Revenue places Arizonans earning $155,000 and above in the top tax bracket at 4.5 percent.
Filing with the new exemption as a married couple the savings, after adjusted income, boils down to approximately $4.50, even less if you are in a lower tax bracket.
Arizona House Speaker JD Mesnard shepherded the exemption and admits it’s a small carrot.
But, said it helped in convincing lawmakers to pass the nearly $10 billion-spending plan and $1 million university bond.
"And this was a nominal but reasonable and still meaningful adjustment that helps every single taxpayer in the state," Mesnard said.
Mesnard said it’s been decades since the personal exemption was adjusted. Its value to tax payers has dropped over the years as inflation increased.
"So it may have been a small adjustment of 50 bucks," Mesnard said. "But it's still a meaningful one in terms of what it communicates to the taxpayer moving forward."
An identical increase is set for the following year, and in 2019 the figure is set to increase with annual inflation.