Bill > HB269

This bill modifies Hawaii's tax code to introduce different capital gains tax rates for resident, nonresident, and foreign taxpayers. For resident taxpayers, the existing tax structure remains largely unchanged, with a maximum tax rate of 7.25%. For nonresident taxpayers, the bill introduces a significantly higher maximum tax rate of 29%, calculated on taxable income above a certain threshold. For foreign taxpayers, an even more substantial maximum tax rate of 150% is established, applying to taxable income above a specified level. Similarly, the bill amends the alternative tax for corporations, creating separate tax calculations for resident, nonresident, and foreign corporations with net capital gains. Under the new provisions, nonresident corporations would face a 16% rate on excess net capital gains, while foreign corporations would be subject to a 150% rate on excess net capital gains. These changes are set to take effect for taxable years beginning after December 31, 2025, and are designed to differentiate tax treatment based on the taxpayer's residency status, potentially aiming to generate additional tax revenue from non-Hawaii-based entities.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=269&year=2026