Bill > SB2325

This bill taxes capital gains income at the same rate as ordinary income. Currently, Hawaii has a lower capital gains tax rate of 7.25%, which primarily benefits wealthy individuals and non-residents investing in real estate. The bill aims to improve tax fairness for working families by repealing the lower capital gains tax rate, which could generate over $132 million in the first year and up to $187 million within six years. The revenue could strengthen government programs such as tax credits, disaster preparedness, public education, affordable housing, mental health services, and homeless services. The bill applies to taxable years beginning after December 31, 2023.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2325&year=2024