HB1074
State taxation; numerous changes to the Commonwealth's tax structure.
Status:
In House
Latest Action:
Feb. 5, 2026
House: Assigned HFIN sub: Subcommittee #3
Chief Patron:
Phil Hernandez (D)
Session:
2026 Regular Session
Summary
As Introduced. State taxation in the Commonwealth.
Makes numerous changes to the Commonwealth's tax structure. The bill creates a new income tax bracket for taxable years beginning on and after January 1, 2026, for income in excess of $1,000,000, which is to be taxed at 7.75 percent. The bill increases the standard deduction to $10,000 for single ... (More) individuals and $20,000 for married individuals beginning in taxable year 2026. The bill also increases the income tax subtraction available for military benefits from $40,000 to $60,000 for taxable years beginning on and after January 1, 2026, but before January 1, 2027. For taxable years on and after January 1, 2027, such $60,000 amount shall be adjusted annually for inflation. Under the bill, eligible low-income taxpayers may claim a refundable income tax credit equal to 25 percent of the federal earned income tax credit claimed by the taxpayer for the same taxable year. Current law allows such a taxpayer to claim a tax credit equal to 20 percent of the federal credit claimed by the taxpayer in the same year. (Less)-
Bill History
- 01/14/2026 - House: Prefiled and ordered printed; Offered 01-14-2026 26105169D
- 01/14/2026 - House: Referred to Committee on Finance
- 01/30/2026 - House: Placed on Finance Agenda
- 02/05/2026 - House: Assigned HFIN sub: Subcommittee #3
