Bill > HB928

This bill aims to address income inequality in Hawaii by increasing the income tax rate on the highest-earning residents, specifically creating a new top tax bracket with a 16% rate for taxable years beginning after December 31, 2029. The bill's findings highlight that over the past several decades, income gains have disproportionately benefited the wealthiest households, with the top 20% of income earners paying a lower share of their household income in taxes compared to the bottom 80%. Drawing on economic research, the legislation argues that increasing marginal income tax rates for high earners can generate substantial revenue for public investments without harming economic growth. For joint filers, the new top tax bracket will apply to income over $1,900,000, with a base tax of $147,246 plus 16% of income above that threshold. Similarly, for heads of household, the top bracket will apply to income over $1,425,000, and for single filers, to income over $950,000. The bill is part of a broader strategy to create a more equitable tax system by ensuring that the highest-earning residents contribute a more proportionate share of their income to state revenues, which can then be used to fund essential public goods and services that benefit families across all income levels.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=928&year=2026