HB 1505 Summary

• Increases personal income tax rates for high-earning taxpayers starting in 2022 with new brackets ranging from 1.40% to 13.00% on income over $500,000 for joint filers

• Increases capital gains tax rate from 7.25% to 11% on net capital gains

• Increases corporate income tax rate from tiered rates (4.4%-6.4%) to a single flat rate of 9.6%

• Exempts unemployment compensation benefits from Hawaii state income tax effective January 1, 2022

• Applies to taxable years beginning after December 31, 2021