SB 276 Summary

• Increases Hawaii state income tax rates by 5% for the highest-income earners, effective for taxable years beginning after December 31, 2020, through December 31, 2027 (6-year period).

• For joint filers and heads of household, raises the top marginal rate from 11% to 16% on income over $400,000 (joint) and over $300,000 (head of household) during the 6-year window.

• For single filers, raises the top marginal rate from 11% to 16% on income over $200,000 during the same 6-year period.

• After 2027, tax rates revert to the previous structure with top marginal rates of 11% across all filing statuses.

• Designed to address COVID-19 pandemic fiscal impacts and revenue shortfalls from business closures and reduced tax revenue, while targeting high-income earners to fund state government operations.