S105 - 2021 Appropriations Act. (SL 2021-180)

Overview: Section 42.1 of S.L. 2021-180 makes the following personal income tax changes:

• Reduces the personal income tax rate to 3.99% over 6 years.
• Increases the standard deduction by approximately 18.6%.
• Increases the child deduction by $500 and expands eligibility.
• Conforms to the permanent federal medical expense deduction threshold.

These changes are effective for taxable years beginning on or after January 1, 2022.