Bill > SB2441

This bill aims to increase tax fairness by taxing capital gains, which are profits from selling assets like stocks or real estate, at the same rate as ordinary income, such as wages and salaries. Currently, Hawaii has a lower tax rate for capital gains, which primarily benefits wealthy individuals and nonresidents investing in the state. By eliminating the preferential tax rate for capital gains, the bill anticipates generating significant revenue that can be used to fund essential government programs like tax credits for working families, education, affordable housing, and climate change initiatives. The bill specifically amends Section 235-51 of the Hawaii Revised Statutes, which outlines individual income tax rates, by removing a provision that allowed for a lower tax rate on net capital gains. This change will take effect for taxable years beginning after December 31, 2025.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2441&year=2026