New laws taking effect on January 1, 2022 include an increase in minimum wage, a change in income taxes and the chance for some adopted Arizonans to access their birth certificates.
Minimum wage increase
The state minimum wage will increase from $12.15 per hour to $12.80 per hour on January 1. Voters initially approved a yearly minimum wage increase in 2016, with the increases to be based on cost-of-living after minimum wage reached $12 per hour in 2020. The minimum wage in Arizona in 2016 was $8.05 per hour.
Income tax
Arizona’s four tax brackets will be replaced by two. The tax rates for single people and married people filing separately will be 2.55 percent for those making $27,272 and less. The tax rate will be 2.98 percent for single filers making more than $27,272 and joint filers with incomes over $54,544.
Arizona’s previous rates ranged from 2.59 percent for single filers with income up to $26,500 to 4.5 percent for single filers with income more than $159,000, with monetary thresholds doubled for those filing jointly.
Birth certificates for adoptees
Anyone born on or before June 20, 1968 andadopted in Arizona can access their original birth certificate upon request. For those born after that date, the release of an Arizona birth certificate requires a court order — as was the case for all Arizona adoptees prior to Jan. 1.
Homestead exemption increase
Arizona’s homestead exemption will increase from $150,000 to $250,000. This means that homeowners can protect more of the equity in their homes when in bankruptcy. However, while judgement liens previously did not apply to homestead property, as of the start of 2022, now they do. This means that homeowners would not have access to homestead equity until they pay those lien holders.