HB 1268 Summary

• Increases state income tax rate by 5 percentage points for the highest-income earners in Hawaii for taxable years beginning after December 31, 2020 through December 31, 2027.

• For joint filers and surviving spouses, raises the top marginal tax rate from 11% to 16% on income over $400,000.

• For heads of household, raises the top marginal tax rate from 11% to 16% on income over $300,000.

• For unmarried individuals and married filing separately, raises the top marginal tax rate from 11% to 16% on income over $200,000.

• Applies to taxable years beginning after December 31, 2020, with the increase automatically reverting to the prior rate structure for taxable years beginning after December 31, 2027.