Hawaii 2025 Regular Session

Hawaii Senate Bill SB349 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	THE SENATE S.B. NO. 349 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT RELATING TO CAPITAL GAINS. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
2	2
3	3	THE SENATE S.B. NO. 349
4	4	THIRTY-THIRD LEGISLATURE, 2025
5	5	STATE OF HAWAII
6	6
7	7	THE SENATE
8	8
9	9	S.B. NO.
10	10
11	11	349
12	12
13	13	THIRTY-THIRD LEGISLATURE, 2025
14	14
15	15
16	16
17	17	STATE OF HAWAII
18	18
19	19
20	20
21	21
22	22
23	23
24	24
25	25
26	26
27	27
28	28
29	29
30	30
31	31	A BILL FOR AN ACT
32	32
33	33
34	34
35	35
36	36
37	37	RELATING TO CAPITAL GAINS.
38	38
39	39
40	40
41	41
42	42
43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
44	44
45	45
46	46
47	47	SECTION 1. The legislature finds that Hawaii has a capital gains tax rate of 7.25 per cent, which is lower than the tax rate many of the State's residents pay on their wages and salaries. The legislature further finds that the low capital gains tax rate primarily benefits wealthy individuals, including nonresidents who invest in real estate in the State. According to the department of taxation, taxing capital gains at the same rate as ordinary income could generate over $132,000,000 in its first year of implementation, with that amount rising to an estimated $187,000,000 within six years. The legislature additionally finds that revenue generated by taxing capital gains at the same rate as ordinary income could be used to strengthen basic government programs, including tax credits for working families, emergency preparedness, disaster prevention, public education, affordable housing, construction, mental health services, public preschool programming, childcare access, climate change adaptation and mitigation, and homeless services. The legislature further finds that because section 55(b)(3) of the Internal Revenue Code, which covers the maximum rate of tax on net capital gain of noncorporate taxpayers, is inoperative for the State, a simple repeal of the applicable provisions of the State's tax laws will impose the ordinary income tax rate to capital gains income. Accordingly, the purpose of this Act is to strengthen tax fairness for working families by taxing capital gains at the same rate as ordinary income. SECTION 2. Section 235-51, Hawaii Revised Statutes, is amended to read as follows: "§235-51 Tax imposed on individuals; rates. (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. (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. (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." (d) The tax imposed by section 235-2.45 on estates and trusts shall be determined in accordance with the following table: In the case of any taxable year beginning after December 31, 2001: If the taxable income is: The tax shall be: Not over $2,000 1.40% of taxable income Over $2,000 but $28.00 plus 3.20% of not over $4,000 excess over $2,000 Over $4,000 but $92.00 plus 5.50% of not over $8,000 excess over $4,000 Over $8,000 but $312.00 plus 6.40% of not over $12,000 excess over $8,000 Over $12,000 but $568.00 plus 6.80% of not over $16,000 excess over $12,000 Over $16,000 but $840.00 plus 7.20% of not over $20,000 excess over $16,000 Over $20,000 but $1,128.00 plus 7.60% of not over $30,000 excess over $20,000 Over $30,000 but $1,888.00 plus 7.90% of not over $40,000 excess over $30,000 Over $40,000 $2,678.00 plus 8.25% of excess over $40,000. (e) Any taxpayer, other than a corporation, acting as a business entity in more than one state who is required by this chapter to file a return may elect to report and pay a tax of .5 per cent of the taxpayer's annual gross sales if the: (1) Taxpayer's only activities in this State consist of sales; (2) Taxpayer does not own or rent real estate or tangible personal property; and (3) Taxpayer's annual gross sales in or into this State during the tax year is not in excess of $100,000. [(f) If a taxpayer has a net capital gain for any taxable year to which this subsection applies, then the tax imposed by this section shall not exceed the sum of: (1) The tax computed at the rates and in the same manner as if this subsection had not been enacted on the greater of: (A) The taxable income reduced by the amount of net capital gain, or (B) The amount of taxable income taxed at a rate below 7.25 per cent, plus (2) A tax of 7.25 per cent of the amount of taxable income in excess of the amount determined under paragraph (1). This subsection shall apply to individuals, estates, and trusts for taxable years beginning after December 31, 1986.]" SECTION 3. Statutory material to be repealed is bracketed and stricken. SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2024. INTRODUCED BY: _____________________________
48	48
49	49	SECTION 1. The legislature finds that Hawaii has a capital gains tax rate of 7.25 per cent, which is lower than the tax rate many of the State's residents pay on their wages and salaries. The legislature further finds that the low capital gains tax rate primarily benefits wealthy individuals, including nonresidents who invest in real estate in the State. According to the department of taxation, taxing capital gains at the same rate as ordinary income could generate over $132,000,000 in its first year of implementation, with that amount rising to an estimated $187,000,000 within six years.
50	50
51	51	The legislature additionally finds that revenue generated by taxing capital gains at the same rate as ordinary income could be used to strengthen basic government programs, including tax credits for working families, emergency preparedness, disaster prevention, public education, affordable housing, construction, mental health services, public preschool programming, childcare access, climate change adaptation and mitigation, and homeless services.
52	52
53	53	The legislature further finds that because section 55(b)(3) of the Internal Revenue Code, which covers the maximum rate of tax on net capital gain of noncorporate taxpayers, is inoperative for the State, a simple repeal of the applicable provisions of the State's tax laws will impose the ordinary income tax rate to capital gains income.
54	54
55	55	Accordingly, the purpose of this Act is to strengthen tax fairness for working families by taxing capital gains at the same rate as ordinary income.
56	56
57	57	SECTION 2. Section 235-51, Hawaii Revised Statutes, is amended to read as follows:
58	58
59	59	"§235-51 Tax imposed on individuals; rates. (a) There is hereby imposed on the taxable income of every:
60	60
61	61	(1) Taxpayer who files a joint return under section 235-93; and
62	62
63	63	(2) Surviving spouse,
64	64
65	65	a tax determined in accordance with the following table:
66	66
67	67
68	68
69	69	In the case of any taxable year beginning after December 31, 2017:
70	70
71	71	If the taxable income is: The tax shall be:
72	72
73	73	Not over $4,800 1.40% of taxable income
74	74
75	75	Over $4,800 but $67.00 plus 3.20% of
76	76
77	77	not over $9,600 excess over $4,800
78	78
79	79	Over $9,600 but $221.00 plus 5.50% of
80	80
81	81	not over $19,200 excess over $9,600
82	82
83	83	Over $19,200 but $749.00 plus 6.40% of
84	84
85	85	not over $28,800 excess over $19,200
86	86
87	87	Over $28,800 but $1,363.00 plus 6.80% of
88	88
89	89	not over $38,400 excess over $28,800
90	90
91	91	Over $38,400 but $2,016.00 plus 7.20% of
92	92
93	93	not over $48,000 excess over $38,400
94	94
95	95	Over $48,000 but $2,707.00 plus 7.60% of
96	96
97	97	not over $72,000 excess over $48,000
98	98
99	99	Over $72,000 but $4,531.00 plus 7.90% of
100	100
101	101	not over $96,000 excess over $72,000
102	102
103	103	Over $96,000 but $6,427.00 plus 8.25% of
104	104
105	105	not over $300,000 excess over $96,000
106	106
107	107	Over $300,000 but $23,257.00 plus 9.00% of
108	108
109	109	not over $350,000 excess over $300,000
110	110
111	111	Over $350,000 but $27,757.00 plus 10.00% of
112	112
113	113	not over $400,000 excess over $350,000
114	114
115	115	Over $400,000 $32,757.00 plus 11.00% of
116	116
117	117	excess over $400,000.
118	118
119	119	In the case of any taxable year beginning after December 31, 2024:
120	120
121	121	If the taxable income is: The tax shall be:
122	122
123	123	Not over $19,200 1.40% of taxable income
124	124
125	125	Over $19,200 but $269.00 plus 3.20% of
126	126
127	127	not over $28,800 excess over $19,200
128	128
129	129	Over $28,800 but $576.00 plus 5.50% of
130	130
131	131	not over $38,400 excess over $28,800
132	132
133	133	Over $38,400 but $1,104.00 plus 6.40% of
134	134
135	135	not over $48,000 excess over $38,400
136	136
137	137	Over $48,000 but $1,718.00 plus 6.80% of
138	138
139	139	not over $72,000 excess over $48,000
140	140
141	141	Over $72,000 but $3,350.00 plus 7.20% of
142	142
143	143	not over $96,000 excess over $72,000
144	144
145	145	Over $96,000 but $5,078.00 plus 7.60% of
146	146
147	147	not over $250,000 excess over $96,000
148	148
149	149	Over $250,000 but $16,782.00 plus 7.90% of
150	150
151	151	not over $350,000 excess over $250,000
152	152
153	153	Over $350,000 but $24,682.00 plus 8.25% of
154	154
155	155	not over $450,000 excess over $350,000
156	156
157	157	Over $450,000 but $32,932.00 plus 9.00% of
158	158
159	159	not over $550,000 excess over $450,000
160	160
161	161	Over $550,000 but $41,932.00 plus 10.00% of
162	162
163	163	not over $650,000 excess over $550,000
164	164
165	165	Over $650,000 $51,932.00 plus 11.00% of
166	166
167	167	excess over $650,000.
168	168
169	169	In the case of any taxable year beginning after December 31, 2026:
170	170
171	171	If the taxable income is: The tax shall be:
172	172
173	173	Not over $28,800 1.40% of taxable income
174	174
175	175	Over $28,800 but $403.00 plus 3.20% of
176	176
177	177	not over $38,400 excess over $28,800
178	178
179	179	Over $38,400 but $710.00 plus 5.50% of
180	180
181	181	not over $48,000 excess over $38,400
182	182
183	183	Over $48,000 but $1,238.00 plus 6.40% of
184	184
185	185	not over $72,000 excess over $48,000
186	186
187	187	Over $72,000 but $2,774.00 plus 6.80% of
188	188
189	189	not over $96,000 excess over $72,000
190	190
191	191	Over $96,000 but $4,406.00 plus 7.20% of
192	192
193	193	not over $250,000 excess over $96,000
194	194
195	195	Over $250,000 but $15,494.00 plus 7.60% of
196	196
197	197	not over $350,000 excess over $250,000
198	198
199	199	Over $350,000 but $23,094.00 plus 7.90% of
200	200
201	201	not over $450,000 excess over $350,000
202	202
203	203	Over $450,000 but $30,994.00 plus 8.25% of
204	204
205	205	not over $550,000 excess over $450,000
206	206
207	207	Over $550,000 but $39,244.00 plus 9.00% of
208	208
209	209	not over $650,000 excess over $550,000
210	210
211	211	Over $650,000 but $48,244.00 plus 10.00% of
212	212
213	213	not over $800,000 excess over $650,000
214	214
215	215	Over $800,000 $63,244.00 plus 11.00% of
216	216
217	217	excess over $800,000.
218	218
219	219	In the case of any taxable year beginning after December 31, 2028:
220	220
221	221	If the taxable income is: The tax shall be:
222	222
223	223	Not over $38,400 1.40% of taxable income
224	224
225	225	Over $38,400 but $538.00 plus 3.20% of
226	226
227	227	not over $48,000 excess over $38,400
228	228
229	229	Over $48,000 but $845.00 plus 5.50% of
230	230
231	231	not over $72,000 excess over $48,000
232	232
233	233	Over $72,000 but $2,165.00 plus 6.40% of
234	234
235	235	not over $96,000 excess over $72,000
236	236
237	237	Over $96,000 but $3,701.00 plus 6.80% of
238	238
239	239	not over $250,000 excess over $96,000
240	240
241	241	Over $250,000 but $14,173.00 plus 7.20% of
242	242
243	243	not over $350,000 excess over $250,000
244	244
245	245	Over $350,000 but $21,373.00 plus 7.60% of
246	246
247	247	not over $450,000 excess over $350,000
248	248
249	249	Over $450,000 but $28,973.00 plus 7.90% of
250	250
251	251	not over $550,000 excess over $450,000
252	252
253	253	Over $550,000 but $36,873.00 plus 8.25% of
254	254
255	255	not over $650,000 excess over $550,000
256	256
257	257	Over $650,000 but $45,123.00 plus 9.00% of
258	258
259	259	not over $800,000 excess over $650,000
260	260
261	261	Over $800,000 but $58,623.00 plus 10.00% of
262	262
263	263	not over $950,000 excess over $800,000
264	264
265	265	Over $950,000 $73,623.00 plus 11.00% of
266	266
267	267	excess over $950,000.
268	268
269	269
270	270
271	271
272	272
273	273	(b) There is hereby imposed on the taxable income of every head of a household a tax determined in accordance with the following table:
274	274
275	275
276	276
277	277	In the case of any taxable year beginning after December 31, 2017:
278	278
279	279	If the taxable income is: The tax shall be:
280	280
281	281	Not over $3,600 1.40% of taxable income
282	282
283	283	Over $3,600 but $50.00 plus 3.20% of
284	284
285	285	not over $7,200 excess over $3,600
286	286
287	287	Over $7,200 but $166.00 plus 5.50% of
288	288
289	289	not over $14,400 excess over $7,200
290	290
291	291	Over $14,400 but $562.00 plus 6.40% of
292	292
293	293	not over $21,600 excess over $14,400
294	294
295	295	Over $21,600 but $1,022.00 plus 6.80% of
296	296
297	297	not over $28,800 excess over $21,600
298	298
299	299	Over $28,800 but $1,512.00 plus 7.20% of
300	300
301	301	not over $36,000 excess over $28,800
302	302
303	303	Over $36,000 but $2,030.00 plus 7.60% of
304	304
305	305	not over $54,000 excess over $36,000
306	306
307	307	Over $54,000 but $3,398.00 plus 7.90% of
308	308
309	309	not over $72,000 excess over $54,000
310	310
311	311	Over $72,000 but $4,820.00 plus 8.25% of
312	312
313	313	not over $225,000 excess over $72,000
314	314
315	315	Over $225,000 but $17,443.00 plus 9.00% of
316	316
317	317	not over $262,500 excess over $225,000
318	318
319	319	Over $262,500 but $20,818.00 plus 10.00% of
320	320
321	321	not over $300,000 excess over $262,500
322	322
323	323	Over $300,000 $24,568.00 plus 11.00% of
324	324
325	325	excess over $300,000.
326	326
327	327	In the case of any taxable year beginning after December 31, 2024:
328	328
329	329	If the taxable income is: The tax shall be:
330	330
331	331	Not over $14,400 1.40% of taxable income
332	332
333	333	Over $14,400 but $202.00 plus 3.20% of
334	334
335	335	not over $21,600 excess over $14,400
336	336
337	337	Over $21,600 but $432.00 plus 5.50% of
338	338
339	339	not over $28,800 excess over $21,600
340	340
341	341	Over $28,800 but $828.00 plus 6.40% of
342	342
343	343	not over $36,000 excess over $28,800
344	344
345	345	Over $36,000 but $1,289.00 plus 6.80% of
346	346
347	347	not over $54,000 excess over $36,000
348	348
349	349	Over $54,000 but $2,513.00 plus 7.20% of
350	350
351	351	not over $72,000 excess over $54,000
352	352
353	353	Over $72,000 but $3,809.00 plus 7.60% of
354	354
355	355	not over $187,500 excess over $72,000
356	356
357	357	Over $187,500 but $12,587.00 plus 7.90% of
358	358
359	359	not over $262,500 excess over $187,500
360	360
361	361	Over $262,500 but $18,512.00 plus 8.25% of
362	362
363	363	not over $337,500 excess over $262,500
364	364
365	365	Over $337,500 but $24,699.00 plus 9.00% of
366	366
367	367	not over $412,500 excess over $337,500
368	368
369	369	Over $412,500 but $31,449.00 plus 10.00% of
370	370
371	371	not over $487,500 excess over $412,500
372	372
373	373	Over $487,500 $38,949.00 plus 11.00% of
374	374
375	375	excess over $487,500.
376	376
377	377	In the case of any taxable year beginning after December 31, 2026:
378	378
379	379	If the taxable income is: The tax shall be:
380	380
381	381	Not over $21,600 1.40% of taxable income
382	382
383	383	Over $21,600 but $302.00 plus 3.20% of
384	384
385	385	not over $28,800 excess over $21,600
386	386
387	387	Over $28,800 but $533.00 plus 5.50% of
388	388
389	389	not over $36,000 excess over $28,800
390	390
391	391	Over $36,000 but $929.00 plus 6.40% of
392	392
393	393	not over $54,000 excess over $36,000
394	394
395	395	Over $54,000 but $2,081.00 plus 6.80% of
396	396
397	397	not over $72,000 excess over $54,000
398	398
399	399	Over $72,000 but $3,305.00 plus 7.20% of
400	400
401	401	not over $187,500 excess over $72,000
402	402
403	403	Over $187,500 but $11,621.00 plus 7.60% of
404	404
405	405	not over $262,500 excess over $187,500
406	406
407	407	Over $262,500 but $17,321.00 plus 7.90% of
408	408
409	409	not over $337,500 excess over $262,500
410	410
411	411	Over $337,500 but $23,246.00 plus 8.25% of
412	412
413	413	not over $412,500 excess over $337,500
414	414
415	415	Over $412,500 but $29,433.00 plus 9.00% of
416	416
417	417	not over $487,500 excess over $412,500
418	418
419	419	Over $487,500 but $36,183.00 plus 10.00% of
420	420
421	421	not over $600,000 excess over $487,500
422	422
423	423	Over $600,000 $47,433.00 plus 11.00% of
424	424
425	425	excess over $600,000.
426	426
427	427	In the case of any taxable year beginning after December 31, 2028:
428	428
429	429	If the taxable income is: The tax shall be:
430	430
431	431	Not over $28,800 1.40% of taxable income
432	432
433	433	Over $28,800 but $403.00 plus 3.20% of
434	434
435	435	not over $36,000 excess over $28,800
436	436
437	437	Over $36,000 but $634.00 plus 5.50% of
438	438
439	439	not over $54,000 excess over $36,000
440	440
441	441	Over $54,000 but $1,624.00 plus 6.40% of
442	442
443	443	not over $72,000 excess over $54,000
444	444
445	445	Over $72,000 but $2,776.00 plus 6.80% of
446	446
447	447	not over $187,500 excess over $72,000
448	448
449	449	Over $187,500 but $10,630.00 plus 7.20% of
450	450
451	451	not over $262,500 excess over $187,500
452	452
453	453	Over $262,500 but $16,030.00 plus 7.60% of
454	454
455	455	not over $337,500 excess over $262,500
456	456
457	457	Over $337,500 but $21,730.00 plus 7.90% of
458	458
459	459	not over $412,500 excess over $337,500
460	460
461	461	Over $412,500 but $27,655.00 plus 8.25% of
462	462
463	463	not over $487,500 excess over $412,500
464	464
465	465	Over $487,500 but $33,842.00 plus 9.00% of
466	466
467	467	not over $600,000 excess over $487,500
468	468
469	469	Over $600,000 but $43,967.00 plus 10.00% of
470	470
471	471	not over $712,500 excess over $600,000
472	472
473	473	Over $712,500 $55,217.00 plus 11.00% of
474	474
475	475	excess over $712,500.
476	476
477	477
478	478
479	479	(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:
480	480
481	481
482	482
483	483	In the case of any taxable year beginning after December 31, 2017:
484	484
485	485	If the taxable income is: The tax shall be:
486	486
487	487	Not over $2,400 1.40% of taxable income
488	488
489	489	Over $2,400 but $34.00 plus 3.20% of
490	490
491	491	not over $4,800 excess over $2,400
492	492
493	493	Over $4,800 but $110.00 plus 5.50% of
494	494
495	495	not over $9,600 excess over $4,800
496	496
497	497	Over $9,600 but $374.00 plus 6.40% of
498	498
499	499	not over $14,400 excess over $9,600
500	500
501	501	Over $14,400 but $682.00 plus 6.80% of
502	502
503	503	not over $19,200 excess over $14,400
504	504
505	505	Over $19,200 but $1,008.00 plus 7.20% of
506	506
507	507	not over $24,000 excess over $19,200
508	508
509	509	Over $24,000 but $1,354.00 plus 7.60% of
510	510
511	511	not over $36,000 excess over $24,000
512	512
513	513	Over $36,000 but $2,266.00 plus 7.90% of
514	514
515	515	not over $48,000 excess over $36,000
516	516
517	517	Over $48,000 but $3,214.00 plus 8.25% of
518	518
519	519	not over $150,000 excess over $48,000
520	520
521	521	Over $150,000 but $11,629.00 plus 9.00% of
522	522
523	523	not over $175,000 excess over $150,000
524	524
525	525	Over $175,000 but $13,879.00 plus 10.00% of
526	526
527	527	not over $200,000 excess over $175,000
528	528
529	529	Over $200,000 $16,379.00 plus 11.00% of
530	530
531	531	excess over $200,000.
532	532
533	533	In the case of any taxable year beginning after December 31, 2024:
534	534
535	535	If the taxable income is: The tax shall be:
536	536
537	537	Not over $9,600 1.40% of taxable income
538	538
539	539	Over $9,600 but $134.00 plus 3.20% of
540	540
541	541	not over $14,400 excess over $9,600
542	542
543	543	Over $14,400 but $288.00 plus 5.50% of
544	544
545	545	not over $19,200 excess over $14,400
546	546
547	547	Over $19,200 but $552.00 plus 6.40% of
548	548
549	549	not over $24,000 excess over $19,200
550	550
551	551	Over $24,000 but $859.00 plus 6.80% of
552	552
553	553	not over $36,000 excess over $24,000
554	554
555	555	Over $36,000 but $1,675.00 plus 7.20% of
556	556
557	557	not over $48,000 excess over $36,000
558	558
559	559	Over $48,000 but $2,539.00 plus 7.60% of
560	560
561	561	not over $125,000 excess over $48,000
562	562
563	563	Over $125,000 but $8,391.00 plus 7.90% of
564	564
565	565	not over $175,000 excess over $125,000
566	566
567	567	Over $175,000 but $12,341.00 plus 8.25% of
568	568
569	569	not over $225,000 excess over $175,000
570	570
571	571	Over $225,000 but $16,466.00 plus 9.00% of
572	572
573	573	not over $275,000 excess over $225,000
574	574
575	575	Over $275,000 but $20,966.00 plus 10.00% of
576	576
577	577	not over $325,000 excess over $275,000
578	578
579	579	Over $325,000 $25,966.00 plus 11.00% of
580	580
581	581	excess over $325,000.
582	582
583	583	In the case of any taxable year beginning after December 31, 2026:
584	584
585	585	If the taxable income is: The tax shall be:
586	586
587	587	Not over $14,400 1.40% of taxable income
588	588
589	589	Over $14,400 but $202.00 plus 3.20% of
590	590
591	591	not over $19,200 excess over $14,400
592	592
593	593	Over $19,200 but $355.00 plus 5.50% of
594	594
595	595	not over $24,000 excess over $19,200
596	596
597	597	Over $24,000 but $619.00 plus 6.40% of
598	598
599	599	not over $36,000 excess over $24,000
600	600
601	601	Over $36,000 but $1,387.00 plus 6.80% of
602	602
603	603	not over $48,000 excess over $36,000
604	604
605	605	Over $48,000 but $2,203.00 plus 7.20% of
606	606
607	607	not over $125,000 excess over $48,000
608	608
609	609	Over $125,000 but $7,747.00 plus 7.60% of
610	610
611	611	not over $175,000 excess over $125,000
612	612
613	613	Over $175,000 but $11,547.00 plus 7.90% of
614	614
615	615	not over $225,000 excess over $175,000
616	616
617	617	Over $225,000 but $15,497.00 plus 8.25% of
618	618
619	619	not over $275,000 excess over $225,000
620	620
621	621	Over $275,000 but $19,622.00 plus 9.00% of
622	622
623	623	not over $325,000 excess over $275,000
624	624
625	625	Over $325,000 but $24,122.00 plus 10.00% of
626	626
627	627	not over $400,000 excess over $325,000
628	628
629	629	Over $400,000 $31,622.00 plus 11.00% of
630	630
631	631	excess over $400,000.
632	632
633	633	In the case of any taxable year beginning after December 31, 2028:
634	634
635	635	If the taxable income is: The tax shall be:
636	636
637	637	Not over $19,200 1.40% of taxable income
638	638
639	639	Over $19,200 but $269.00 plus 3.20% of
640	640
641	641	not over $24,000 excess over $19,200
642	642
643	643	Over $24,000 but $422.00 plus 5.50% of
644	644
645	645	not over $36,000 excess over $24,000
646	646
647	647	Over $36,000 but $1,082.00 plus 6.40% of
648	648
649	649	not over $48,000 excess over $36,000
650	650
651	651	Over $48,000 but $1,850.00 plus 6.80% of
652	652
653	653	not over $125,000 excess over $48,000
654	654
655	655	Over $125,000 but $7,086.00 plus 7.20% of
656	656
657	657	not over $175,000 excess over $125,000
658	658
659	659	Over $175,000 but $10,686.00 plus 7.60% of
660	660
661	661	not over $225,000 excess over $175,000
662	662
663	663	Over $225,000 but $14,486.00 plus 7.90% of
664	664
665	665	not over $275,000 excess over $225,000
666	666
667	667	Over $275,000 but $18,436.00 plus 8.25% of
668	668
669	669	not over $325,000 excess over $275,000
670	670
671	671	Over $325,000 but $22,561.00 plus 9.00% of
672	672
673	673	not over $400,000 excess over $325,000
674	674
675	675	Over $400,000 but $29,311.00 plus 10.00% of
676	676
677	677	not over $475,000 excess over $400,000
678	678
679	679	Over $475,000 $36,811.00 plus 11.00% of
680	680
681	681	excess over $475,000."
682	682
683	683
684	684
685	685	(d) The tax imposed by section 235-2.45 on estates and trusts shall be determined in accordance with the following table:
686	686
687	687
688	688
689	689	In the case of any taxable year beginning after December 31, 2001:
690	690
691	691	If the taxable income is: The tax shall be:
692	692
693	693	Not over $2,000 1.40% of taxable income
694	694
695	695	Over $2,000 but $28.00 plus 3.20% of
696	696
697	697	not over $4,000 excess over $2,000
698	698
699	699	Over $4,000 but $92.00 plus 5.50% of
700	700
701	701	not over $8,000 excess over $4,000
702	702
703	703	Over $8,000 but $312.00 plus 6.40% of
704	704
705	705	not over $12,000 excess over $8,000
706	706
707	707	Over $12,000 but $568.00 plus 6.80% of
708	708
709	709	not over $16,000 excess over $12,000
710	710
711	711	Over $16,000 but $840.00 plus 7.20% of
712	712
713	713	not over $20,000 excess over $16,000
714	714
715	715	Over $20,000 but $1,128.00 plus 7.60% of
716	716
717	717	not over $30,000 excess over $20,000
718	718
719	719	Over $30,000 but $1,888.00 plus 7.90% of
720	720
721	721	not over $40,000 excess over $30,000
722	722
723	723	Over $40,000 $2,678.00 plus 8.25% of
724	724
725	725	excess over $40,000.
726	726
727	727
728	728
729	729	(e) Any taxpayer, other than a corporation, acting as a business entity in more than one state who is required by this chapter to file a return may elect to report and pay a tax of .5 per cent of the taxpayer's annual gross sales if the:
730	730
731	731	(1) Taxpayer's only activities in this State consist of sales;
732	732
733	733	(2) Taxpayer does not own or rent real estate or tangible personal property; and
734	734
735	735	(3) Taxpayer's annual gross sales in or into this State during the tax year is not in excess of $100,000.
736	736
737	737	[(f) If a taxpayer has a net capital gain for any taxable year to which this subsection applies, then the tax imposed by this section shall not exceed the sum of:
738	738
739	739	(1) The tax computed at the rates and in the same manner as if this subsection had not been enacted on the greater of:
740	740
741	741	(A) The taxable income reduced by the amount of net capital gain, or
742	742
743	743	(B) The amount of taxable income taxed at a rate below 7.25 per cent, plus
744	744
745	745	(2) A tax of 7.25 per cent of the amount of taxable income in excess of the amount determined under paragraph (1).
746	746
747	747	This subsection shall apply to individuals, estates, and trusts for taxable years beginning after December 31, 1986.]"
748	748
749	749	SECTION 3. Statutory material to be repealed is bracketed and stricken.
750	750
751	751	SECTION 4. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2024.
752	752
753	753
754	754
755	755	INTRODUCED BY: _____________________________
756	756
757	757	INTRODUCED BY:
758	758
759	759	_____________________________
760	760
761	761
762	762
763	763
764	764
765	765	Report Title: Capital Gains Tax; Rate; Repeal Description: Taxes capital gains income at the same rate as ordinary income. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
766	766
767	767
768	768
769	769
770	770
771	771
772	772
773	773	Report Title:
774	774
775	775	Capital Gains Tax; Rate; Repeal
776	776
777	777
778	778
779	779	Description:
780	780
781	781	Taxes capital gains income at the same rate as ordinary income.
782	782
783	783
784	784
785	785
786	786
787	787
788	788
789	789	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.