income tax; standard deduction; 2025

SB 1578 sets new standard deduction amounts for Arizona income tax filers for the 2025 tax year. It allows taxpayers to choose this standard deduction instead of itemizing deductions, with specific amounts based on filing status: $15,750 for single filers or married filing separately, $23,625 for heads of household, and $31,500 for married couples filing jointly. The bill directly affects Arizona residents who file individual income tax returns for 2025. These deduction levels apply only to the 2025 tax year, beginning after December 31, 2024. The change simplifies tax filing for eligible individuals by establishing fixed deduction amounts.