Bill > HB928

This bill aims to address income inequality in Hawaii by introducing a new, higher tax bracket for the highest-income earners starting in the tax year 2030. Specifically, the bill adds a 16% tax rate for individuals with taxable income over $1,900,000 (for joint filers), over $1,425,000 (for heads of household), and over $950,000 (for single filers). The legislature's rationale is based on findings that income gains have disproportionately benefited the highest-earning households, who currently pay a lower share of their income in taxes compared to lower-income groups. Drawing on economic research, the bill argues that increasing taxes on top earners can generate revenue for public investments without harming economic growth. The new tax bracket is designed to create a more equitable tax structure by ensuring that the highest-income residents contribute a larger share of their earnings to support essential public services and investments that can benefit families across all income levels. The tax rate increase will take effect for taxable years beginning after December 31, 2029.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=928&year=2025