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HB928 • 2026

RELATING TO INCOME TAX.

RELATING TO INCOME TAX.

Taxes
Active

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

Sponsor
PERRUSO, BELATTI, GRANDINETTI, IWAMOTO, KAPELA, KUSCH, POEPOE
Last action
2025-12-08
Official status
Carried over to 2026 Regular Session.
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide specific details about the new tax rate or how it would affect taxpayers earning between $650,000 and $800,000.

Increase Income Tax for Highest Earners

This bill proposes to increase the income tax rate on the highest income earners in Hawaii starting from taxable years after December 31, 2029.

What This Bill Does

  • Establishes a new tax bracket for taxable years beginning after December 31, 2029.

Who It Names or Affects

  • People who earn more than $800,000 a year will be affected by the new tax bracket starting in 2030.

Terms To Know

Tax Bracket
A range of income levels that are taxed at the same rate.
Marginal Tax Rate
The tax rate applied to each additional dollar earned within a specific bracket.

Limits and Unknowns

  • The bill does not specify how much extra revenue will be raised.
  • It is unclear what public services and programs the new taxes would fund.

Bill History

  1. 2025-12-08 D

    Carried over to 2026 Regular Session.

  2. 2025-01-23 H

    Referred to FIN, referral sheet 3

  3. 2025-01-23 H

    Introduced and Pass First Reading.

  4. 2025-01-21 H

    Pending introduction.

Official Summary Text

RELATING TO INCOME TAX.
Income Tax; Income Tax Brackets; Highest Income Earners
Increases the income tax rate on the highest income earners in the State by establishing a new tax bracket for taxable years beginning after 12/31/2029.

Current Bill Text

Read the full stored bill text
HB928

HOUSE OF REPRESENTATIVES

H.B. NO.

928

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO INCOME TAX
.

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

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SECTION 1.
�
The legislature finds that over the past
several decades, income inequality has worsened in the State.
�
According to the Center on Budget and Policy
Priorities, since the 1970s, incomes for the State's richest households have
grown at double the rate of middle-class households, and at almost five times
the rate of the State's poorest households.
�

As income gains have increasingly gone to the highest earners, wages
have stagnated for most workers.

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The legislature also finds that while the
State's highest‑earning households have enjoyed the benefits of these
trends, they have not borne the appropriate corresponding burden.
�
A 2024 report by the Institute on Taxation
and Economic Policy found that the top twenty per cent of income earners in the
State paid a substantially lower share of household income in taxes than the
bottom eighty per cent.
�
This state of affairs
allows the highest income earners to amass wealth, and the power that comes
with it, without paying their fair share of taxes in return.
�
Moreover, it saddles the State's working
families with the burden of paying a greater portion of their household income
in taxes, though they can ill afford to do so.

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The legislature further finds that Nobel
Prize winning economist Joseph Stiglitz has called an increase in the top
marginal income tax rates "[t]he most obvious reform . . . [to] both raise
needed revenues and soften America's extreme and harmful inequality."
�
According to the Center on Budget
and Policy Priorities, evidence indicates that increasing the personal income
tax rates for the highest earners "can generate substantial revenue for
public investments that boost a state's productivity in the long run, without
harming economic growth in the short term."
�
The increased revenues derived from an
increased tax rate for the highest earners would strengthen the State's economy
by funding essential public goods and services and provide benefits to families
at all income levels, whether by helping to create private wealth through
research grants and small business subsidies, or by providing essential
government programs that make it easier for working families to achieve upward
mobility.
�
By simply paying their fair
share, the State's highest earners will be helping to fund investments in
people and communities that will provide long-term social and economic benefits
to the State.

����
Accordingly, the purpose of this Act is to
increase the income tax rate on the highest income earners in the State by
establishing a new income tax bracket for taxable years beginning after
December 31, 2029.

����
SECTION

2
.
�
Section 235-51,
Hawaii Revised Statutes, is amended by amending subsections (a), (b), and (c)
to read as follows:

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

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

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(2)
�
Surviving spouse,

a tax
determined in accordance with the following table:

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

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If the taxable income is:
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The tax shall be:

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Not over $4,800
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1.40% of taxable income

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

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

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

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

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

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

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

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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

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

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

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

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

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

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

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

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excess
over $400,000.

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

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If the taxable income is:
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The tax shall be:

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Not over $19,200
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1.40% of taxable income

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

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

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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

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

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

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

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excess
over $650,000.

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

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If the taxable income is:
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The tax shall be:

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

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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

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

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excess
over $800,000.

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

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If the taxable income is:
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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

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

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excess
over $950,000.

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In the case of any taxable year
beginning after December 31, 2029:

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If the taxable income is:
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The tax shall be:

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Over $1,900,000
�������������
$147,246.00 plus 16.00% of
excess over $1,900,000.

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

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

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If the taxable income is:
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The tax shall be:

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

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

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

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

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

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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

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

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

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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

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

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

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

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excess
over $300,000.

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

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If the taxable income is:
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The tax shall be:

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

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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

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excess
over $487,500.

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

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If the taxable income is:
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The tax shall be:

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

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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.

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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, 2029:

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

������
Over $1,425,000
�������������
$110,434.00 plus 16.00% of
excess over $1,425,000.

����
(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, 2029:

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

���������
Over
$950,000
���������������
$73,622.00
plus 16.00% of

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

����
SECTION 3.
�

New statutory material is underscored.

����
SECTION 4.
�
This Act, upon its approval, shall apply to
taxable years beginning after December 31, 2029.

INTRODUCED BY:

_____________________________

Report Title:

Income
Tax; Income Tax Brackets; Highest Income Earners

Description:

Increases
the income tax rate on the highest income earners in the State by establishing
a new tax bracket for taxable years beginning after 12/31/2029.

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