Arizona taxpayers may want to hold off on filing their 2025 returns as state lawmakers move to rewrite key parts of the state tax code in an effort Gov. Katie Hobbs says will deliver “immediate” relief to middle-class families, a tax professional advising clients said.

Chris J. Scoggin, a Maricopa-based CPA and tax expert, is watching the issue closely.

His advice? Wait to file your taxes. For now, anyway.

Wait until the Arizona Legislature passes and Hobbs signs a bill that would “align Arizona’s income tax brackets and standard deduction allowances with the Federal limits” outlined in the so-called One, Big, Beautiful Bill Act.

Scoggin said the pending state measure would also create new exclusions for overtime and tips, and add deductions aimed at seniors, with restrictions including income-based phaseouts for higher earners.

“We anticipate that the state adjustments will be approved in the next several days,” Scoggin told InMaricopa, adding that updated forms should be available by the time federal electronic filing opens Jan. 26. For taxpayers who feel they must file before then, he recommended submitting a paper federal return and waiting to file Arizona’s Form 140 until state rules and forms are finalized.

The warning comes as Hobbs pressed lawmakers in her State of the State speech to move quickly on tax changes that would be timed to this year’s filing season. In her address Monday, Hobbs urged legislators to send her a “Middle Class Tax Cuts Package” immediately, saying she would sign it and calling for more than $200 million in tax cuts for Arizona families.

Hobbs’ proposal highlighted several of the same concepts raised by Scoggin, including increasing the standard deduction used by most Arizona filers, cutting taxes on overtime pay and tips, and providing targeted relief for seniors.

“Arizonans need that relief when they file their taxes this spring,” Hobbs said in the address.

If the Legislature acts, and the Arizona Department of Revenue updates forms and instructions, waiting before you file could help taxpayers avoid amending returns or recalculating state taxable income under new deduction and exclusion rules, Scoggin indicated. He cautioned that the proposed benefits come with limits and phaseouts, meaning the effect could vary widely by income level and filing status.

Hobbs framed the push as part of a broader affordability agenda, arguing that families remain strained by the costs of housing, food, healthcare and utilities even as the state adds jobs and attracts major investment. She also warned against prioritizing tax breaks for corporations and the wealthy over middle-class relief.

For now, Scoggin advised taxpayers eager to get paperwork done to separate their federal and state timelines: File the federal return when ready but delay the Arizona filing until the state’s bill and forms are settled.

Arizona lawmakers have not announced a final vote schedule for the package Scoggin referenced.