Arizona Republicans unveil major tax relief bill for families and small businesses

Arizona House Speaker Steve Montenegro (R-29)
Arizona House Speaker Steve Montenegro (R-29)
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House and Senate Republicans in Arizona are set to hold a news conference today to discuss the recent passage of two significant bills, HB 2153 and SB 1106. These bills, collectively known as “Arizona’s One Big Beautiful Bill,” aim to provide approximately $1.1 billion in tax relief over three years. The legislation is designed to align Arizona’s tax code with federal reforms while avoiding benefits for high-income taxpayers.

The package offers direct financial relief to working families, seniors, and service-industry employees by eliminating state income tax on tips and overtime pay, increasing the child tax credit by 25%, creating a new deduction for childcare expenses, and providing up to $6,000 per individual—or $12,000 per couple—in tax relief on retirement income for seniors aged 60 and older. Additionally, the relief will be applied retroactively to the 2025 tax year.

Republican leaders emphasize that this plan maintains fiscal stability without raising taxes or expanding government spending. They assert that it strengthens Arizona’s economy by allowing families to retain more of their earnings. Small business owners from Arizona will also participate in the event to share their views on the impact of these legislative changes.

The news conference is scheduled for Thursday, January 15, 2026, at noon or immediately after floor votes conclude at the Capitol Rose Garden in Phoenix. Republican leaders will take questions from the media following their remarks.



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