SB 3125, signed into law as Act 24 on May 21, 2026
estimated savings over the next five years (initial projections)
Read the SB 3125 FAQIn 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:
Estimated revenue from each proposal the coalition tracked during the 2026 session. Only SB 3125 passed.
Bars show each bill’s estimate during the session. SB 3125 was amended before it passed; the final version (Act 24) is projected to save about $680 million over five years.
The State passed huge tax breaks with Act 46 in 2024, and the top 1% of taxpayers would have benefited the most. SB 3125 halts those planned cuts for the highest-income households and adds a new 13% rate on the very top earners.
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 Hawaiʻi residents, while making it higher for the ultra-wealthy.
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.
Tax on income over $1 million. The State’s top 1 percent can afford to pay more to help secure our state’s future.
REITs make millions of dollars off real estate but pay no corporate income tax to our state.
Investors should be fairly taxed on all of their income from investments, including passive income.