Bill stops a massive tax hike on working families

Taxation & revenues; extends sunsets for standard deduction and refundable earned income tax.

Introduced· 2026-01-14

Who's it for

Who's it for: Everyday People

What it means for you

9/10Helps you

Good for everyday people ·

Plain‑English summary, cross‑checked against the official bill text.

This bill stops your state taxes from going up by keeping the standard deduction and a special tax credit for workers at their current levels for two extra years.

Our take

What we think, in plain words.

Right now, a rule that keeps your state taxes lower is set to expire in 2027. If that happens, the amount of money you can earn tax-free drops by a lot, and a special tax break for low-income workers goes away. This bill pushes that deadline back to 2029. It saves regular families and workers from a sudden tax hike.

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The facts

What the bill actually says, no spin.

Keeps the standard tax deduction at $8,750 for single people and $17,500 for married couples until 2029.
Stops the standard deduction from dropping all the way down to $3,000 for single people and $6,000 for couples.
Keeps the state's earned income tax credit for low-income workers at 20 percent for two extra years.
Allows workers to keep getting that credit as a cash refund even if they do not owe taxes.