Revenue Options to Fund Our Future
Passed — 2026 Session
Projected Revenue — SB 3125 CD1
$680 million
estimated savings over the next five years (initial projections)
In total, all of the changes in SB 3125 could save Hawaiʻi an estimated $680 million over the next five years (according to initial projections). This revenue will be crucial for preserving the common goods in our state budget—priorities like Medicaid and SNAP. Here are a few of the specific provisions in the bill:
- Halts planned income tax cuts for the highest-income households.
- Preserves the income tax cut schedule from Act 46 (2024) for joint filers under about $350,000 in income, heads of household under about $262,500, and single filers under about $175,000.
- Adds a new marginal tax rate of 13 percent on high-income single filers earning over $500,000 and married couples earning over $1 million.
The 2026 Proposals
These were the revenue proposals the coalition tracked during the 2026 session. Of these, only SB 3125 CD1 (Stop Tax Cuts for the Wealthy) passed.
Stop Tax Cuts for the Wealthy Passed
$680M over 5 years (SB 3125 CD1 — enacted)
The State passed huge tax breaks with Act 46 in 2024, and the top 1% of taxpayers would have benefited the most. SB 3125 CD1 halts those planned cuts for the highest-income households and adds a new 13% rate on the very top earners.
Tax Wealth Like Work Did Not Pass
Options
$84M Revenue
Income from investments should not be taxed at lower rates than income from regular work. This proposal would tax capital gains fairly, at the same rate as ordinary income from a job.
Sample Testimony
View Testimony Template
Tweak the Conveyance Tax Did Not Pass
$270.8M - $302.6M Revenue (HD3 SD1 Draft)
Luxury homes and second homes should be taxed at higher rates when they're sold. This proposal would make the conveyance tax lower for middle-class Hawaii residents, while making it higher for the ultra-wealthy.
Closing the Real Estate Investment Trust Loophole Did Not Pass
$36M - $60M Revenue
REITs make millions of dollars off real estate but pay no corporate income tax to our state.
Sample Testimony
View Testimony Template
Millionaire's Income Tax Did Not Pass
Bill Options
$71M Revenue
Tax on income over $1 million. The State's top 1 percent can afford to pay more to help secure our state's future.
Sample Testimony
View Testimony Template
Other Priorities
Wealth Proceeds Tax Did Not Pass
$53.9M Revenue
Investors should be fairly taxed on all of their income from investments, including passive income.
Sample Testimony
View Testimony Template
2026 Coalition Priorities
2026 Messaging Guide
