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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2032 |
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THIRTY-THIRD LEGISLATURE, 2026 |
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STATE OF HAWAII |
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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) Section 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.
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INTRODUCED BY: |
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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.