S.B. 3250 Summary

• Amends Hawaii income tax code for taxable years beginning after December 31, 2021, to add two new marginal tax brackets for high-income earners: 16% on income over $10,000,000 and 19% on income over $25,000,000 for joint filers and surviving spouses.

• Establishes similar new high-income tax brackets for head of household filers (16% over $7,500,000 and 19% over $18,750,000) and unmarried individuals (16% over $5,000,000 and 19% over $12,500,000).

• Adds new marginal tax brackets for estates and trusts with 13.25% on income over $200,000 and 16.25% on income over $500,000.

• Creates a wealth tax working group within the Department of Taxation to develop a proposal for a state wealth tax on individuals with assets exceeding $10,000,000, with a report due to the legislature before the 2023 regular session.

• Effective date is July 30, 2075 (future implementation date).