HB 2780 Summary

• Amends Hawaii income tax rates in Section 235-51 for joint filers, heads of household, and unmarried individuals with separate tax brackets effective for taxable years beginning after December 31, 2026.

• Implements incremental tax rate changes on four separate dates: after December 31, 2026; after December 31, 2028; after December 31, 2030; raising income thresholds and adjusting tax rates progressively upward for higher income brackets.

• Increases top marginal tax rate from 11.00% on income over $400,000-$650,000 to 11.00% on income over $650,000-$950,000 depending on filing status and effective year.

• Expands lower and middle-income tax brackets with higher threshold amounts in later years, providing graduated tax relief across multiple income levels.

• Effective January 1, 3000, applying to taxable years beginning after December 31, 2026.