HI HB3

Increases personal income tax rates and implements a rate recapture mechanism phasing out lower tax brackets for high earners on taxable years beginning after December 31, 2020, with top marginal rate reaching 13% for joint filers earning over $500,000.

Increases corporate income tax from tiered rates (4.4%-6.4%) to a flat 9.6% rate for all taxable income.

Increases capital gains tax rate from 7.25% to 11%.

Temporarily suspends certain general excise tax exemptions from July 1, 2021, through June 30, 2023, imposing a 4% tax on previously exempt gross income and receipts.

Increases conveyance (property transfer) tax rates for properties valued at $1,000,000 or greater, ranging from 60 cents to $2.50 per $100 of value depending on property price and buyer status.