Back to Hawaii

HB2032 • 2026

RELATING TO TAXATION.

RELATING TO TAXATION.

Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
KILA, AMATO, EVSLIN, GARCIA, ILAGAN, KAPELA, LOWEN, MATAYOSHI, MORIKAWA, MURAOKA, OLDS, POEPOE, REYES ODA, TAM, TARNAS, TEMPLO
Last action
2026-01-28
Official status
Referred to ECD, FIN, referral sheet 3
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide specific details about the funding or potential impacts on state revenue.

Tax Changes for Groceries and Unemployment

This bill proposes tax changes including exempting groceries and nonprescription drugs from sales taxes, removing state income tax on unemployment benefits, doubling standard deductions for lower-income earners, increasing the low-income household renters' tax credit, and adjusting income tax brackets.

What This Bill Does

  • Exempts the sale of groceries and nonprescription drugs from general excise taxes.
  • Removes state income tax on unemployment compensation benefits.
  • Doubles the standard deduction for individuals earning less than $100,000 and joint filers earning less than $200,000.
  • Increases the maximum adjusted gross income allowed to qualify for the low-income household renters' income tax credit and raises the credit amount.
  • Repeals incremental changes to income tax brackets and removes taxes on the first $100,000 of individual income earned.

Who It Names or Affects

  • Residents who buy groceries and nonprescription drugs will benefit from reduced sales taxes.
  • Individuals receiving unemployment compensation benefits will no longer pay state income tax on these benefits.
  • Taxpayers earning less than $100,000 individually or $200,000 jointly will see an increase in their standard deductions.

Terms To Know

Standard Deduction
A fixed amount that taxpayers can subtract from their income before calculating taxes owed.
Income Tax Brackets
Different rates of tax applied to different levels or 'brackets' of taxable income.

Limits and Unknowns

  • The bill does not specify an effective date for the changes.
  • It is unclear how these changes will be funded and what impact they might have on state revenue.

Bill History

  1. 2026-01-28 H

    Referred to ECD, FIN, referral sheet 3

  2. 2026-01-26 H

    Introduced and Pass First Reading.

  3. 2026-01-23 H

    Pending introduction.

Official Summary Text

RELATING TO TAXATION.
Taxation; Exemptions; Groceries; Nonprescription Drugs; Income Tax; Income Tax Brackets; Standard Deduction; Unemployment Insurance; Low-income Household Renters' Income Tax Credit
PART II: Exempts the sale of groceries and nonprescription drugs from the general excise tax. PART III: Removes the state income tax on unemployment compensation benefits. PART IV: Doubles the standard deduction for individuals earning less than $100,000 and joint filers earning less than $200,000. Repeals the incremental increases on standard income tax deduction amounts. PART V: Increases the maximum adjusted gross income allowed to qualify for the low-income household renters' income tax credit and increases the credit amount. PART VI: Repeals the incremental changes to income tax brackets and removes the tax liability for the first $100,000 of individual income earned.

Current Bill Text

Read the full stored bill text
HB2032

HOUSE OF REPRESENTATIVES

H.B. NO.

2032

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to taxation
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

����
SECTION 1.
�
The legislature finds that tax equity is a
cornerstone of economic prosperity.
�
According
to the Institute on Taxation and Economic Policy, Hawaii places the
second-highest tax burden on low-income households, with the State's
lowest-income households paying approximately fourteen per cent of their income
in state and local taxes.
�
In comparison,
the State's highest earning households pay approximately ten per cent of their
income in state and local taxes.

����
The legislature further finds that
the State's cost of living continues to be burdensome for residents.
�
According to the National Low Income Housing
Coalition's "Out of Reach 2023" report, a minimum wage employee must
work one hundred seven hours per week to afford a one-bedroom rental home at
fair market prices.
�
To afford a
two-bedroom residence without being cost burdened, the National Low Income
Housing Coalition estimates that a person must earn $49.19 per hour.

����
In addition to the rising cost of
housing, the costs of utilities, groceries, and other everyday items have also
increased significantly within the last five years.
�
Rising costs of these essential items can
also increase the burden on lower-income families.
�
Eliminating the general excise tax on
groceries and nonprescription drugs could ease the tax burden on residents,
especially lower-income households.
�
Further,
money saved from a lower tax burden can be spent elsewhere in the local
economy, creating a circular effect that will help many individuals and
families statewide.

����
Accordingly, the purpose of this Act
is to:

����
(1)
�
Exempt the sale of
groceries and nonprescription drugs from the general excise tax;

����
(2)
�
Remove the state
income tax on unemployment compensation benefits;

����
(3)
�
Double the
standard deduction for taxpayers earning less than $100,000 and jointly filing
taxpayers earning less than $200,000;

����
(4)
�
Repeal the
incremental increases on standard income tax deduction amounts;

����
(5)
�
Increase the maximum adjusted
gross income allowed to qualify for the low-income household renters' income
tax credit and increases the credit amount
; and

����
(6)
�
Repeal the incremental
changes to income tax brackets and remove the tax liability for the first
$100,000 of individual income earned
.

PART II

����
SECTION 2.
�
Chapter 237, Hawaii Revised Statutes, is
amended by adding two new sections to be appropriately designated and to read
as follows:

����
"
�237-
�
Groceries; exemption.
�
(a)
�

Notwithstanding

any provision of law to the contrary, there
shall be exempted from, and excluded from the measure of, the taxes imposed by
this chapter all of the gross proceeds or income received from the sale of all
groceries eligible for purchase under the supplemental nutrition assistance
program and special supplemental nutrition program for women, infants, and
children within the State, regardless of the means of purchase and the
eligibility of the purchaser for supplemental nutrition assistance program or
special supplemental nutrition program for women, infants, and children
benefits.

����
(b)
�
For
the purposes of this section:

����
"Food" or "food product"
means substances, whether in liquid, concentrated, solid, frozen, dried, or
dehydrated form, that are sold for ingestion or chewing by humans and are
consumed for their taste or nutritional value.

����
"Groceries" means any food or food
product for home consumption.
�
"Groceries"
may be further defined by the department of taxation by rule through the
enumeration of items in rules or tax informational release; provided that the
department shall consult with the federal Food and Nutrition Service of the
United States Department of Agriculture in further defining the term
"groceries" for purposes of the supplemental nutrition assistance
program and special supplemental nutrition program for women, infants, and
children.

����
�237-
�
Nonprescription drugs; exemption.
�
(a)
�
Notwithstanding

any provision of law to the contrary, there shall be exempted from, and
excluded from the measure of, the taxes imposed by this chapter all of the
gross proceeds or gross income received from the sale of nonprescription drugs
within the State.

����
(b)
�
For
the purposes of this section:

����
"Drug" means:

����
(1)
�
Articles
recognized in the official United States Pharmacopoeia, official United States
Pharmacopoeia Dispensing Information, official Homeopathic Pharmacopoeia of the
United States, or official National Formulary, or any supplement to any of
these publications;

����
(2)
�
Articles
intended for use in the diagnosis, cure, mitigation, treatment, or prevention
of disease in humans or animals;

����
(3)
�
Articles, other
than food or clothing, intended to affect the structure or any function of the
body of humans or animals; or

����
(4)
�
Articles
intended for use as a component of any article specified in paragraphs (1)
through (3); provided that the term "drug" does not include devices
or their components, parts, or accessories; cosmetics; or liquor as defined in
section 281-1.

����
"Nonprescription drug" means any
packaged, bottled, or nonbulk chemical, drug, or medicine that may be lawfully
sold without a practitioner's order.
"

PART III

����
SECTION
3
.
�
Section 235-7,
Hawaii Revised Statutes, is amended by amending subsection (a) to read as
follows:

����
"(a)
�
There shall be excluded from gross income,
adjusted gross income, and taxable income:

����
(1)
�
Income not subject
to taxation by the State under the Constitution and laws of the United States;

����
(2)
�
Rights, benefits,
and other income exempted from taxation by section 88-91, having to do with the
state retirement system, and the rights, benefits, and other income, comparable
to the rights, benefits, and other income exempted by section 88-91, under any
other public retirement system;

����
(3)
�
Any compensation
received in the form of a pension for past services;

����
(4)
�
Compensation paid
to a patient affected with Hansen's disease employed by the State or the United
States in any hospital, settlement, or place for the treatment of Hansen's
disease;

����
(5)
�
Except as
otherwise expressly provided, payments made by the United States or this State,
under an act of Congress or a law of this State, which by express provision or
administrative regulation or interpretation are exempt from both the normal and
surtaxes of the United States, even though not so exempted by the Internal
Revenue Code itself;

����
(6)
�
Any income
expressly exempted or excluded from the measure of the tax imposed by this
chapter by any other law of the State, it being the intent of this chapter not
to repeal or supersede any such express exemption or exclusion;

����
(7)
�
Income received by
each member of the reserve components of the Army, Navy, Air Force, Marine
Corps, or Coast Guard of the United States of America, and the Hawaii National
Guard as compensation for performance of duty, equivalent to pay received for
forty-eight drills (equivalent of twelve weekends) and fifteen days of annual
duty, at an:

���������
(A)
�
E-1 pay grade
after eight years of service; provided that this subparagraph shall apply to
taxable years beginning after December 31, 2004;

���������
(B)
�
E-2 pay grade
after eight years of service; provided that this subparagraph shall apply to
taxable years beginning after December 31, 2005;

���������
(C)
�
E-3 pay grade
after eight years of service; provided that this subparagraph shall apply to
taxable years beginning after December 31, 2006;

���������
(D)
�
E-4 pay grade
after eight years of service; provided that this subparagraph shall apply to
taxable years beginning after December 31, 2007; and

���������
(E)
�
E-5 pay grade
after eight years of service; provided that this subparagraph shall apply to
taxable years beginning after December 31, 2008;

����
(8)
�
Income derived
from the operation of ships or aircraft if the income is exempt under the
Internal Revenue Code pursuant to the provisions of an income tax treaty or
agreement entered into by and between the United States and a foreign
country[;] provided that the tax laws of the local governments of that country
reciprocally exempt from the application of all of their net income taxes, the
income derived from the operation of ships or aircraft that are documented or
registered under the laws of the United States;

����
(9)
�
The value of legal
services provided by a legal service plan to a taxpayer, the taxpayer's spouse,
and the taxpayer's dependents;

���
(10)
�
Amounts paid,
directly or indirectly, by a legal service plan to a taxpayer as payment or
reimbursement for the provision of legal services to the taxpayer, the
taxpayer's spouse, and the taxpayer's dependents;

���
(11)
�
Contributions by
an employer to a legal service plan for compensation (through insurance or
otherwise) to the employer's employees for the costs of legal services incurred
by the employer's employees, their spouses, and their dependents; [
and
]

���
(12)
�
Amounts received
in the form of a monthly surcharge by a utility acting on behalf of an affected
utility under section 269-16.3; provided that amounts retained by the acting
utility for collection or other costs shall not be included in this exemption[
.
]
;
and

���
(13)
�
Income
received as unemployment compensation benefits under chapter 383.
"

����
SECTION
4
.
�
Section
383-163, Hawaii Revised Statutes, is amended to read as follows:

����
"
�383-163
�
No assignment of
benefits; waiver.
�
No assignment,
pledge, or encumbrance of any right to benefits which are or may become due or
payable under this chapter shall be valid and the right to benefits shall not
be subject to levy, execution, attachment, garnishment, or any other remedy for
the collection of debt.
�
No waiver of
this section shall be valid, except that this section shall not apply to:

����
(1)
�
Section 383-163.5
with respect to the withholding and deduction of benefits for the payment of
child support obligations;

����
(2)
�
Section 383-163.6
with respect to the voluntary withholding and deduction of benefits for payment
of federal [
and state
] income taxes; and

����
(3)
�
Section 383-163.7
with respect to the withholding and deduction of benefits for repayment of
uncollected overissuances of food stamp coupons."

����
SECTION
5
.
�
Section
383-163.6, Hawaii Revised Statutes, is amended by amending subsection (a) to
read as follows:

����
"(a)
�
An individual filing a new claim for
unemployment compensation shall, at the time of filing the claim, be advised
that:

����
(1)
�
Unemployment
compensation is subject to federal [
and state
] income tax;

����
(2)
�
Requirements exist
pertaining to estimated tax payments;

����
(3)
�
The individual may
elect to have federal income tax deducted and withheld from the individual's
payment of unemployment compensation at the amount specified in the federal
Internal Revenue Code;

���
[
(4)
�
The individual
may elect to have state income tax deducted and withheld from the individual's
payment of unemployment compensation at the amount specified in section 235-69;

����
(5)
]

(4)
�

The individual may elect to have state and local income taxes
deducted and withheld from the individual's payment of unemployment
compensation for other states and localities outside this State at the
percentage established by the state or locality, if the department by agreement
with the other state or locality is authorized to deduct and withhold income
tax; and

���
[
(6)
]

(5)
�

The individual shall be permitted to change a previously elected
withholding status no more than once during a benefit year."

PART IV

����
SECTION
6
.
�
Section
235-2.4, Hawaii Revised Statutes, is amended by amending subsection (a) to read
as follows:

����
"(a)
�
Section 63 (with respect to taxable income
defined) of the Internal Revenue Code shall be operative for the purposes of
this chapter, subject to the following:

����
(1)
�
Section
63(c)(1)(B) (relating to the additional standard deduction), 63(c)(1)(C)
(relating to the real property tax deduction), 63(c)(1)(D) (relating to the
disaster loss deduction), 63(c)(1)(E) (relating to the motor vehicle sales tax
deduction), 63(c)(4) (relating to inflation adjustments), 63(c)(7) (defining
the real property tax deduction), 63(c)(8) (defining the disaster loss
deduction), 63(c)(9) (defining the motor vehicle sales tax deduction), and
63(f) (relating to additional amounts for the aged or blind) of the Internal
Revenue Code shall not be operative for purposes of this chapter;

����
(2)
�
S
ection
63(c)(2) (relating to the basic standard deduction) of the Internal Revenue
Code shall be operative, except that the standard deduction amounts provided therein
shall instead mean:

���������
(A)
�
$4,400
,
or $8,800 for a return with an adjusted gross income of less than $200,000,

in the case of:

�������������
(i)
�
A
joint return as provided by section 235-93; or

������������
(ii)
�
A
surviving spouse (as defined in section 2(a) of the Internal Revenue Code);

���������
(B)
�
$3,212
,
or $6,424 for a return with an adjusted gross income less than $100,000,
in
the case of a head of household (as defined in section 2(b) of the Internal
Revenue Code);

���������
(C)
�
$2,200
,
or $4,400 for a return with an adjusted gross income less than $100,000,
in
the case of an individual who is not married and who is not a surviving spouse
or head of household;
and

���������
(D)
�
$2,200
,
or $4,400 for a return with an adjusted gross income less than $100,000,
in
the case of a married individual filing a separate return;

��������
[
(E)
�
For
taxable years beginning after December 31, 2023:

�������������
(i)
�
$8,800
in the case of a joint return as provided by section 235-93 or a surviving
spouse (as defined in section 2(a) of the Internal Revenue Code);

������������
(ii)
�
$6,424
in the case of a head of household (as defined in section 2(b) of the Internal
Revenue Code);

�����������
(iii)
�
$4,400
in the case of an individual who is not married and who is not a surviving
spouse or head of household; or

������������
(iv)
�
$4,400
in the case of a married individual filing a separate return;

���������
(F)
�
For
taxable years beginning after December 31, 2025:

�������������
(i)
�
$16,000
in the case of a joint return as provided by section 235-93 or a surviving
spouse (as defined in section 2(a) of the Internal Revenue Code);

������������
(ii)
�
$12,000
in the case of a head of household (as defined in section 2(b) of the Internal
Revenue Code);

�����������
(iii)
�
$8,000
in the case of an individual who is not married and who is not a surviving
spouse or head of household; or

������������
(iv)
�
$8,000
in the case of a married individual filing a separate return;

���������
(G)
�
For
taxable years beginning after December 31, 2027:

�������������
(i)
�
$18,000
in the case of a joint return as provided by section 235-93 or a surviving
spouse (as defined in section 2(a) of the Internal Revenue Code);

������������
(ii)
�
$13,500
in the case of a head of household (as defined in section 2(b) of the Internal
Revenue Code);

�����������
(iii)
�
$9,000
in the case of an individual who is not married and who is not a surviving
spouse or head of household; or

������������
(iv)
�
$9,000
in the case of a married individual filing a separate return;

���������
(H)
�
For
taxable years beginning after December 31, 2029:

�������������
(i)
�
$20,000
in the case of a joint return as provided by section 235-93 or a surviving
spouse (as defined in section 2(a) of the Internal Revenue Code);

������������
(ii)
�
$15,000
in the case of a head of household (as defined in section 2(b) of the Internal
Revenue Code);

�����������
(iii)
�
$10,000
in the case of an individual who is not married and who is not a surviving
spouse or head of household; or

������������
(iv)
�
$10,000
in the case of a married individual filing a separate return; and

���������
(I)
�
For
taxable years beginning after December 31, 2030:

�������������
(i)
�
$24,000
in the case of a joint return as provided by section 235-93 or a surviving
spouse (as defined in section 2(a) of the Internal Revenue Code);

������������
(ii)
�
$18,000
in the case of a head of household (as defined in section 2(b) of the Internal
Revenue Code);

�����������
(iii)
�
$12,000
in the case of an individual who is not married and who is not a surviving
spouse or head of household; or

������������
(iv)
�
$12,000
in the case of a married individual filing a separate return;
]

����
(3)
�
Section
63(c)(5) (limiting the basic standard deduction in the case of certain
dependents) of the Internal Revenue Code shall be operative, except that the
limitation shall be the greater of $500 or the individual's earned income; and

����
(4)
�
The
standard deduction amount for nonresidents shall be calculated pursuant to
section 235-5."

PART V

����
SECTION
7
.
�
Section
235-55.7, Hawaii Revised Statutes, is amended as follows:

����
1.
�

By amending subsections (a) to (c) to read:

����
"(a)
�
As used in this section:

���
[
(1)
]

"Adjusted
gross income" is defined by section 235-1.

���
[
(2)
]

"Qualified
exemption" includes those exemptions permitted under this chapter;
provided that a person for whom exemption is claimed has physically resided in
the State for more than nine months during the taxable year; [
and
]
provided
further
that multiple [
exemption
]
exemptions

shall not be granted because of deficiencies in vision, hearing, or other
disability.

���
[
(3)
]

"Rent"
means the amount paid in cash in any taxable year for the occupancy of a
dwelling place [
which
]
that
is used by a resident taxpayer or the
resident taxpayer's immediate family as the principal residence in this
State.
�
Rent is limited to the amount
paid for the occupancy of the dwelling place only, [
and
]
or
is
exclusive of charges for utilities, parking stalls, storage of goods, yard
services, furniture, furnishings, and the like.
�

Rent shall not include any rental claimed as a deduction from gross income
or adjusted gross income for income tax purposes, any ground rental paid for
use of land only, [
and
]
or
any rent allowance or subsidies
received.

����
(b)
�

Each resident taxpayer who occupies and pays rent for real property
within the State as the resident taxpayer's residence or the residence of the
resident taxpayer's immediate family [
which
]
that
is not
partially or wholly exempted from real property tax, who is not eligible to be
claimed as a dependent for federal or state income taxes by another, and who
files an individual net income tax return for a taxable year, may claim a tax
credit under this section against the resident taxpayer's Hawaii state
individual net income tax.

����
(c)
�

Each taxpayer with an adjusted gross income of less than [
$30,000
]

$50,000
who has paid more than $1,000 in rent during the taxable year
for which the credit is claimed may claim a tax credit of [
$50
]
$500

multiplied by the number of qualified exemptions to which the taxpayer is
entitled; provided
that
each taxpayer sixty-five years of age or over
may claim double the tax credit; [
and
] provided
further
that a
resident individual who has no income or no income taxable under this chapter
may also claim the tax credit as set forth in this section."

����
2.
�
By amending
subsection (e) to read:

����
"(e)
�
The tax credits shall be deductible from the
taxpayer's individual net income tax for the tax year in which the credits are
properly claimed; provided that [
a husband and wife
]
married
individuals
filing separate returns for a taxable year for which a joint
return could have been made by them shall claim only the tax credits to which
they would have been entitled had a joint return been filed.
�
In the event the allowed tax credits exceed
the amount of the income tax payments due from the taxpayer, the excess of
credits over payments due shall be refunded to the taxpayer; provided that
allowed tax credits properly claimed by an individual who has no income tax
liability shall be paid to the individual; [
and
] provided further that
no refunds or payments on account of the tax credits allowed by this section
shall be made for amounts less than $1."

����
3.
�
By amending
subsection (h) to read:

����
"(h)
�
Claims for tax credits under this section,
including any amended claims [
thereof
], shall be filed on or before the
end of the twelfth month following the taxable year for which the credit may be
claimed."

PART VI

����
SECTION
8
.
�
Section 235-51,
Hawaii Revised Statutes, is amended by amending subsections (a) to (c) to read
as follows:

����
"
(a)
�
There is hereby imposed
on the taxable income of every:

����
(1)
�
Taxpayer who files a joint return under
section 235-93; and

����
(2)
�
Surviving spouse,

a tax determined in accordance with the following table:

����
In the case of any
taxable year beginning after December 31, 2017:

���������
If
the taxable income is:
����
The tax shall
be:

���������
Not
over $4,800
�������������
1.40% of taxable
income

���������
Over
$4,800 but
�������������
$67.00 plus 3.20%
of

�����������
not
over $9,600
�������������
excess over
$4,800

���������
Over
$9,600 but
�������������
$221.00 plus 5.50%
of

�����������
not
over $19,200
������������
excess over
$9,600

���������
Over
$19,200 but
������������
$749.00 plus 6.40%
of

�����������
not
over $28,800
������������
excess over
$19,200

���������
Over
$28,800 but
������������
$1,363.00 plus
6.80% of

�����������
not
over $38,400
������������
excess over
$28,800

���������
Over
$38,400 but
������������
$2,016.00 plus
7.20% of

�����������
not
over $48,000
������������
excess over
$38,400

���������
Over
$48,000 but
������������
$2,707.00 plus
7.60% of

�����������
not
over $72,000
������������
excess over
$48,000

���������
Over
$72,000 but
������������
$4,531.00 plus
7.90% of

�����������
not
over $96,000
������������
excess over
$72,000

���������
Over
$96,000 but
������������
$6,427.00 plus
8.25% of

�����������
not
over $300,000
������������
excess over
$96,000

���������
Over
$300,000 but
������������
$23,257.00 plus
9.00% of

�����������
not
over $350,000
������������
excess over
$300,000

���������
Over $350,000 but
������������
$27,757.00 plus 10.00% of

�����������
not
over $400,000
������������
excess over
$350,000

���������
Over $400,000
���������������
$32,757.00 plus 11.00% of

����������������������������������������
excess
over $400,000.

����
In the case of any
taxable year beginning after December 31, 2024:

���������
If
the taxable income is:
����
The tax shall
be:

���������
Not
over $19,200
������������
1.40% of taxable
income

���������
Over
$19,200 but
������������
$269.00 plus 3.20%
of

�����������
not
over $28,800
������������
excess over
$19,200

���������
Over
$28,800 but
������������
$576.00 plus 5.50%
of

�����������
not
over $38,400
������������
excess over
$28,800

���������
Over
$38,400 but
������������
$1,104.00 plus
6.40% of

�����������
not
over $48,000
������������
excess over
$38,400

���������
Over
$48,000 but
������������
$1,718.00 plus
6.80% of

�����������
not
over $72,000
������������
excess over
$48,000

���������
Over
$72,000 but
������������
$3,350.00 plus
7.20% of

�����������
not
over $96,000
������������
excess over
$72,000

���������
Over
$96,000 but
������������
$5,078.00 plus
7.60% of

�����������
not
over $250,000
������������
excess over
$96,000

���������
Over
$250,000 but
������������
$16,782.00 plus
7.90% of

�����������
not
over $350,000
������������
excess over
$250,000

���������
Over
$350,000 but
������������
$24,682.00 plus
8.25% of

�����������
not
over $450,000
������������
excess over
$350,000

���������
Over
$450,000 but
������������
$32,932.00 plus
9.00% of

�����������
not
over $550,000
������������
excess over
$450,000

���������
Over $550,000 but
������������
$41,932.00 plus 10.00% of

�����������
not
over $650,000
������������
excess over
$550,000

���������
Over $650,000
���������������
$51,932.00 plus 11.00% of

����������������������������������������
excess
over $650,000.

����
[
In the case of any
taxable year beginning after December 31, 2026:

���������
If
the taxable income is:
����
The tax
shall be:

���������
Not
over $28,800
������������
1.40% of
taxable income

���������
Over
$28,800 but
������������
$403.00
plus 3.20% of

�����������
not
over $38,400
������������
excess
over $28,800

���������
Over
$38,400 but
������������
$710.00
plus 5.50% of

�����������
not
over $48,000
������������
excess
over $38,400

���������
Over
$48,000 but
������������
$1,238.00
plus 6.40% of

�����������
not
over $72,000
������������
excess
over $48,000

���������
Over
$72,000 but
������������
$2,774.00
plus 6.80% of

�����������
not
over $96,000
������������
excess
over $72,000

���������
Over
$96,000 but
������������
$4,406.00
plus 7.20% of

�����������
not
over $250,000
������������
excess
over $96,000

���������
Over
$250,000 but
������������
$15,494.00
plus 7.60% of

�����������
not
over $350,000
������������
excess
over $250,000

���������
Over
$350,000 but
������������
$23,094.00
plus 7.90% of

�����������
not
over $450,000
������������
excess
over $350,000

���������
Over
$450,000 but
������������
$30,994.00
plus 8.25% of

�����������
not
over $550,000
������������
excess
over $450,000

���������
Over
$550,000 but
������������
$39,244.00
plus 9.00% of

�����������
not
over $650,000
������������
excess
over $550,000

���������
Over $650,000 but
������������
$48,244.00 plus 10.00% of

�����������
not
over $800,000
������������
excess
over $650,000

���������
Over $800,000
���������������
$63,244.00 plus 11.00% of

����������������������������������������
excess
over $800,000.

����
In the case of any
taxable year beginning after December 31, 2028:

���������
If
the taxable income is:
����
The tax
shall be:

���������
Not
over $38,400
������������
1.40% of
taxable income

���������
Over
$38,400 but
������������
$538.00
plus 3.20% of

�����������
not
over $48,000
������������
excess
over $38,400

���������
Over
$48,000 but
������������
$845.00
plus 5.50% of

�����������
not
over $72,000
������������
excess
over $48,000

���������
Over
$72,000 but
������������
$2,165.00
plus 6.40% of

�����������
not
over $96,000
������������
excess
over $72,000

���������
Over
$96,000 but
������������
$3,701.00
plus 6.80% of

�����������
not
over $250,000
������������
excess
over $96,000

���������
Over
$250,000 but
������������
$14,173.00
plus 7.20% of

�����������
not
over $350,000
������������
excess
over $250,000

���������
Over
$350,000 but
������������
$21,373.00
plus 7.60% of

�����������
not
over $450,000
������������
excess
over $350,000

���������
Over
$450,000 but
������������
$28,973.00
plus 7.90% of

�����������
not
over $550,000
������������
excess
over $450,000

���������
Over
$550,000 but
������������
$36,873.00
plus 8.25% of

�����������
not
over $650,000
������������
excess
over $550,000

���������
Over
$650,000 but
������������
$45,123.00
plus 9.00% of

�����������
not
over $800,000
������������
excess
over $650,000

���������
Over $800,000 but
������������
$58,623.00 plus 10.00% of

�����������
not
over $950,000
������������
excess
over $800,000

���������
Over $950,000
���������������
$73,623.00 plus 11.00% of

����������������������������������������
excess
over $950,000.
]

����
In the case of any
taxable year beginning after December 31, 2026:

���������
If
the taxable income is:
����
The tax
shall be:

���������
Over
$100,000 but
������������
8.25% of

�����������
not
over $300,000
������������
excess
over $100,000

���������
Over
$300,000 but
������������
$16,500
plus 9.00% of

�����������
not
over $350,000
������������
excess
over $300,000

���������
Over
$350,000 but
������������
$21,000
plus 10.00% of

�����������
not
over $400,000
������������
excess
over $350,000

���������
Over $400,000
���������������
$26,000 plus 11.00% of

����������������������������������������
excess
over $400,000.

����
(b)
�
There is hereby imposed on the taxable income
of every head of a household a tax determined in accordance with the following
table:

����
In the case of any
taxable year beginning after December 31, 2017:

���������
If
the taxable income is:
����
The tax shall
be:

���������
Not
over $3,600
�������������
1.40% of taxable
income

���������
Over
$3,600 but
�������������
$50.00 plus 3.20%
of

�����������
not
over $7,200
�������������
excess over
$3,600

���������
Over
$7,200 but
�������������
$166.00 plus 5.50%
of

�����������
not
over $14,400
������������
excess over
$7,200

���������
Over
$14,400 but
������������
$562.00 plus 6.40%
of

�����������
not
over $21,600
������������
excess over
$14,400

���������
Over
$21,600 but
������������
$1,022.00 plus
6.80% of

�����������
not
over $28,800
������������
excess over
$21,600

���������
Over
$28,800 but
������������
$1,512.00 plus
7.20% of

�����������
not
over $36,000
������������
excess over
$28,800

���������
Over
$36,000 but
������������
$2,030.00 plus
7.60% of

�����������
not
over $54,000
������������
excess over
$36,000

���������
Over
$54,000 but
������������
$3,398.00 plus
7.90% of

�����������
not
over $72,000
������������
excess over
$54,000

���������
Over
$72,000 but
������������
$4,820.00 plus
8.25% of

�����������
not
over $225,000
������������
excess over
$72,000

���������
Over
$225,000 but
������������
$17,443.00 plus
9.00% of

�����������
not
over $262,500
������������
excess over
$225,000

���������
Over $262,500 but
������������
$20,818.00 plus 10.00% of

�����������
not
over $300,000
������������
excess over
$262,500

���������
Over $300,000
���������������
$24,568.00 plus 11.00% of

����������������������������������������
excess
over $300,000.

����
In the case of any
taxable year beginning after December 31, 2024:

���������
If
the taxable income is:
����
The tax shall
be:

���������
Not
over $14,400
������������
1.40% of taxable
income

���������
Over
$14,400 but
������������
$202.00 plus 3.20%
of

�����������
not
over $21,600
������������
excess over
$14,400

���������
Over
$21,600 but
������������
$432.00 plus 5.50%
of

�����������
not
over $28,800
������������
excess over
$21,600

���������
Over
$28,800 but
������������
$828.00 plus 6.40%
of

�����������
not
over $36,000
������������
excess over
$28,800

���������
Over
$36,000 but
������������
$1,289.00 plus
6.80% of

�����������
not
over $54,000
������������
excess over
$36,000

���������
Over
$54,000 but
������������
$2,513.00 plus
7.20% of

�����������
not
over $72,000
������������
excess over
$54,000

���������
Over
$72,000 but
������������
$3,809.00 plus
7.60% of

�����������
not
over $187,500
������������
excess over
$72,000

���������
Over
$187,500 but
������������
$12,587.00 plus
7.90% of

�����������
not
over $262,500
������������
excess over
$187,500

���������
Over
$262,500 but
������������
$18,512.00 plus
8.25% of

�����������
not
over $337,500
������������
excess over
$262,500

���������
Over
$337,500 but
������������
$24,699.00 plus
9.00% of

�����������
not
over $412,500
������������
excess over
$337,500

���������
Over $412,500 but
������������
$31,449.00 plus 10.00% of

�����������
not
over $487,500
������������
excess over
$412,500

���������
Over $487,500
���������������
$38,949.00 plus 11.00% of

����������������������������������������
excess
over $487,500.

����
[
In the case of any
taxable year beginning after December 31, 2026:

���������
If
the taxable income is:
����
The tax
shall be:

���������
Not
over $21,600
������������
1.40% of
taxable income

���������
Over
$21,600 but
������������
$302.00
plus 3.20% of

�����������
not
over $28,800
������������
excess
over $21,600

���������
Over
$28,800 but
������������
$533.00
plus 5.50% of

�����������
not
over $36,000
������������
excess
over $28,800

���������
Over
$36,000 but
������������
$929.00
plus 6.40% of

�����������
not
over $54,000
������������
excess
over $36,000

���������
Over
$54,000 but
������������
$2,081.00
plus 6.80% of

�����������
not
over $72,000
������������
excess
over $54,000

���������
Over
$72,000 but
������������
$3,305.00
plus 7.20% of

�����������
not
over $187,500
������������
excess
over $72,000

���������
Over
$187,500 but
������������
$11,621.00
plus 7.60% of

�����������
not
over $262,500
������������
excess
over $187,500

���������
Over
$262,500 but
������������
$17,321.00
plus 7.90% of

�����������
not
over $337,500
������������
excess
over $262,500

���������
Over
$337,500 but
������������
$23,246.00
plus 8.25% of

�����������
not
over $412,500
������������
excess
over $337,500

���������
Over
$412,500 but
������������
$29,433.00
plus 9.00% of

�����������
not
over $487,500
������������
excess
over $412,500

���������
Over $487,500 but
������������
$36,183.00 plus 10.00% of

�����������
not
over $600,000
������������
excess
over $487,500

���������
Over $600,000
���������������
$47,433.00 plus 11.00% of

����������������������������������������
excess
over $600,000.

����
In the case of any
taxable year beginning after December 31, 2028:

���������
If
the taxable income is:
����
The tax
shall be:

���������
Not
over $28,800
������������
1.40% of
taxable income

���������
Over
$28,800 but
������������
$403.00
plus 3.20% of

�����������
not
over $36,000
������������
excess
over $28,800

���������
Over
$36,000 but
������������
$634.00
plus 5.50% of

�����������
not
over $54,000
������������
excess
over $36,000

���������
Over
$54,000 but
������������
$1,624.00
plus 6.40% of

�����������
not
over $72,000
������������
excess
over $54,000

���������
Over
$72,000 but
������������
$2,776.00
plus 6.80% of

�����������
not
over $187,500
������������
excess
over $72,000

���������
Over
$187,500 but
������������
$10,630.00
plus 7.20% of

�����������
not
over $262,500
������������
excess
over $187,500

���������
Over
$262,500 but
������������
$16,030.00
plus 7.60% of

�����������
not
over $337,500
������������
excess
over $262,500

���������
Over
$337,500 but
������������
$21,730.00
plus 7.90% of

�����������
not
over $412,500
������������
excess
over $337,500

���������
Over
$412,500 but
������������
$27,655.00
plus 8.25% of

�����������
not
over $487,500
������������
excess
over $412,500

���������
Over
$487,500 but
������������
$33,842.00
plus 9.00% of

�����������
not
over $600,000
������������
excess
over $487,500

���������
Over $600,000 but
������������
$43,967.00 plus 10.00% of

�����������
not
over $712,500
������������
excess
over $600,000

���������
Over $712,500
���������������
$55,217.00 plus 11.00% of

����������������������������������������
excess
over $712,500.
]

����
In the case of any
taxable year beginning after December 31, 2026:

���������
If
the taxable income is:
����
The tax
shall be:

���������
Over
$100,000 but
������������
8.25% of

�����������
not
over $225,000
������������
excess
over $100,000

���������
Over
$225,000 but
������������
$10,313
plus 9.00% of

�����������
not
over $262,500
������������
excess
over $225,000

���������
Over
$262,500 but
������������
$13,688
plus 10.00% of

�����������
not
over $300,000
������������
excess
over $262,500

���������
Over $300,000
���������������
$17,438 plus 11.00% of

����������������������������������������
excess
over $300,000.

����
(c)
�
There is hereby imposed on the taxable income
of (1) every unmarried individual (other than a surviving spouse, or the head
of a household) and (2) on the taxable income of every married individual who
does not make a single return jointly with the individual's spouse under
section 235-93 a tax determined in accordance with the following table:

����
In the case of any
taxable year beginning after December 31, 2017:

���������
If
the taxable income is:
����
The tax shall
be:

���������
Not
over $2,400
�������������
1.40% of taxable
income

���������
Over
$2,400 but
�������������
$34.00 plus 3.20%
of

�����������
not
over $4,800
�������������
excess over
$2,400

���������
Over
$4,800 but
�������������
$110.00 plus 5.50%
of

�����������
not
over $9,600
�������������
excess over
$4,800

���������
Over
$9,600 but
�������������
$374.00 plus 6.40%
of

�����������
not
over $14,400
������������
excess over
$9,600

���������
Over
$14,400 but
������������
$682.00 plus 6.80%
of

�����������
not
over $19,200
������������
excess over
$14,400

���������
Over
$19,200 but
������������
$1,008.00 plus
7.20% of

�����������
not
over $24,000
������������
excess over
$19,200

���������
Over
$24,000 but
������������
$1,354.00 plus
7.60% of

�����������
not
over $36,000
������������
excess over
$24,000

���������
Over
$36,000 but
������������
$2,266.00 plus
7.90% of

�����������
not
over $48,000
������������
excess over
$36,000

���������
Over $48,000 but
������������
$3,214.00 plus 8.25% of

�����������
not
over $150,000
������������
excess over
$48,000

���������
Over
$150,000 but
������������
$11,629.00 plus
9.00% of

�����������
not
over $175,000
������������
excess over
$150,000

���������
Over $175,000 but
������������
$13,879.00 plus 10.00% of

�����������
not
over $200,000
������������
excess over
$175,000

���������
Over $200,000
���������������
$16,379.00 plus 11.00% of

����������������������������������������
excess
over $200,000.

����
In the case of any
taxable year beginning after December 31, 2024:

���������
If
the taxable income is:
����
The tax shall
be:

���������
Not
over $9,600
�������������
1.40% of taxable
income

���������
Over
$9,600 but
�������������
$134.00 plus 3.20%
of

�����������
not
over $14,400
������������
excess over
$9,600

���������
Over
$14,400 but
������������
$288.00 plus 5.50%
of

�����������
not
over $19,200
������������
excess over
$14,400

���������
Over
$19,200 but
������������
$552.00 plus 6.40%
of

�����������
not
over $24,000
������������
excess over
$19,200

���������
Over
$24,000 but
������������
$859.00 plus 6.80%
of

�����������
not
over $36,000
������������
excess over
$24,000

���������
Over
$36,000 but
������������
$1,675.00 plus
7.20% of

�����������
not
over $48,000
������������
excess over
$36,000

���������
Over
$48,000 but
������������
$2,539.00 plus
7.60% of

�����������
not
over $125,000
������������
excess over
$48,000

���������
Over
$125,000 but
������������
$8,391.00 plus
7.90% of

�����������
not
over $175,000
������������
excess over
$125,000

���������
Over
$175,000 but
������������
$12,341.00 plus
8.25% of

�����������
not
over $225,000
������������
excess over
$175,000

���������
Over
$225,000 but
������������
$16,466.00 plus
9.00% of

�����������
not
over $275,000
������������
excess over
$225,000

���������
Over $275,000 but
������������
$20,966.00 plus 10.00% of

�����������
not
over $325,000
������������
excess over
$275,000

���������
Over $325,000
���������������
$25,966.00 plus 11.00% of

����������������������������������������
excess
over $325,000.

����
[
In the case of any
taxable year beginning after December 31, 2026:

���������
If
the taxable income is:
����
The tax
shall be:

���������
Not
over $14,400
������������
1.40% of
taxable income

���������
Over
$14,400 but
������������
$202.00
plus 3.20% of

�����������
not
over $19,200
������������
excess
over $14,400

���������
Over
$19,200 but
������������
$355.00
plus 5.50% of

�����������
not
over $24,000
������������
excess
over $19,200

���������
Over
$24,000 but
������������
$619.00
plus 6.40% of

�����������
not
over $36,000
������������
excess
over $24,000

���������
Over
$36,000 but
������������
$1,387.00
plus 6.80% of

�����������
not
over $48,000
������������
excess
over $36,000

���������
Over
$48,000 but
������������
$2,203.00
plus 7.20% of

�����������
not
over $125,000
������������
excess
over $48,000

���������
Over
$125,000 but
������������
$7,747.00
plus 7.60% of

�����������
not
over $175,000
������������
excess
over $125,000

���������
Over
$175,000 but
������������
$11,547.00
plus 7.90% of

�����������
not
over $225,000
������������
excess
over $175,000

���������
Over
$225,000 but
������������
$15,497.00
plus 8.25% of

�����������
not
over $275,000
������������
excess
over $225,000

���������
Over
$275,000 but
������������
$19,622.00
plus 9.00% of

�����������
not
over $325,000
������������
excess
over $275,000

���������
Over $325,000 but
������������
$24,122.00 plus 10.00% of

�����������
not
over $400,000
������������
excess
over $325,000

���������
Over $400,000
���������������
$31,622.00 plus 11.00% of

����������������������������������������
excess
over $400,000.

����
In the case of any
taxable year beginning after December 31, 2028:

���������
If
the taxable income is:
����
The tax
shall be:

���������
Not
over $19,200
������������
1.40% of
taxable income

���������
Over
$19,200 but
������������
$269.00
plus 3.20% of

�����������
not
over $24,000
������������
excess
over $19,200

���������
Over
$24,000 but
������������
$422.00
plus 5.50% of

�����������
not
over $36,000
������������
excess
over $24,000

���������
Over
$36,000 but
������������
$1,082.00
plus 6.40% of

�����������
not
over $48,000
������������
excess
over $36,000

���������
Over
$48,000 but
������������
$1,850.00
plus 6.80% of

�����������
not
over $125,000
������������
excess
over $48,000

���������
Over
$125,000 but
������������
$7,086.00
plus 7.20% of

�����������
not
over $175,000
������������
excess
over $125,000

���������
Over
$175,000 but
������������
$10,686.00
plus 7.60% of

�����������
not
over $225,000
������������
excess
over $175,000

���������
Over
$225,000 but
������������
$14,486.00
plus 7.90% of

�����������
not
over $275,000
������������
excess
over $225,000

���������
Over
$275,000 but
������������
$18,436.00
plus 8.25% of

�����������
not
over $325,000
������������
excess
over $275,000

���������
Over
$325,000 but
������������
$22,561.00
plus 9.00% of

�����������
not
over $400,000
������������
excess
over $325,000

���������
Over $400,000 but
������������
$29,311.00 plus 10.00% of

�����������
not
over $475,000
������������
excess
over $400,000

���������
Over $475,000
���������������
$36,811.00 plus 11.00% of

����������������������������������������
excess
over $475,000.
]

����
In the case of any
taxable year beginning after December 31, 2026:

���������
If
the taxable income is:
����
The tax
shall be:

���������
Over
$100,000 but
������������
8.25% of

�����������
not
over $150,000
������������
excess
over $100,000

���������
Over
$150,000 but
������������
$4,125
plus 9.00% of

�����������
not
over $175,000
������������
excess
over $150,000

���������
Over
$175,000 but
������������
$6,375
plus 10.00% of

�����������
not
over $200,000
������������
excess
over $175,000

���������
Over $200,000
���������������
$8,875 plus 11.00% of

����������������������������������������
excess
over $200,000.
"

PART VII

����
SECTION
9.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 10.
�
This Act shall take effect on July 1, 2026,
and shall apply to taxable years beginning after December 31, 2026.

INTRODUCED BY:

_____________________________

Report Title:

Taxation; Exemptions; Groceries; Nonprescription Drugs;
Income Tax; Income Tax Brackets; Standard Deduction; Unemployment Insurance; Low-income
Household Renters' Income Tax Credit

Description:

PART
II:
�
Exempts the sale of groceries and
nonprescription drugs from the general excise tax.
�
PART III:
�

Removes the state income tax on unemployment compensation benefits.
�
PART IV:
�

Doubles the standard deduction for individuals earning less than
$100,000 and joint filers earning less than $200,000.
�
Repeals the incremental increases on standard
income tax deduction amounts.
�
PART
V:
�
Increases the maximum adjusted gross
income allowed to qualify for the low-income household renters' income tax
credit and increases the credit amount.
�
PART
VI:
�
Repeals the incremental changes to
income tax brackets and removes the tax liability for the first $100,000 of
individual income earned.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.