Despite passing historic income tax reforms last year, Hawaii state legislators are considering multiple tax hikes in 2025. Local residents already have one of the highest tax burdens in the nation and we cannot afford to become an even more expensive place to live and do business.
Over the past six years, Hawaii’s population has been steadily declining, with tens of thousands of residents leaving the state, many of them relocating to mainland states like Washington, Nevada, Texas, and Florida—places that don’t have high tax burdens. We need policies that foster economic growth, not policies that push people away.
As more residents leave, fewer people remain to work in private businesses or fill critical positions in government agencies. The shrinking workforce means fewer people are available to contribute to the state’s tax base, which increases the pressure to raise taxes on the remaining population.
There is also no need to raise taxes because there is more than enough money in the budget. At the January Council on Revenues meeting, the short-term surplus actually grew to $1.3 billion, up from $1 billion. Over the long term, the surplus still reaches $4.6 billion, plus $2 billion in emergency reserves.
Now is not the time for more taxes, fees, or surcharges. Hawaii’s residents and businesses need relief, not additional financial burdens. Establishing a carbon tax, increasing the transient accommodations tax and extending the general excise tax surcharge are just a few of the proposals that would increase the high cost of living. See below for a full list of the proposed taxes and fees in 2025.
HB476: Increases the maximum capital gains tax rate to 9%. Increases the alternative capital gains tax for corporations to 5%.
HB504: TAT hike to __%; imposes minimum per-night tax of $20 on rooms awarded through a membership, loyalty, or rewards program.
HB604: Hikes TAT by 1% with the additional money going to the Hawaiian Home General Loan Fund.
HB928/SB1649: Increases the income tax rate on the highest income earners in the State by establishing a new tax bracket, effective in 2030.
HB1077/SB1396: Establishes the Climate Mitigation and Resiliency Special Fund and Economic Development and Revitalization Special Fund. Increases TAT in 2026.
HB1235/SB313: Establishes a wealth asset tax of one per cent of the state net worth of each individual taxpayer who holds $20,000,000 or more in assets in the State.
SB220: Extension of county surcharge on state tax and TAT increase to 2056.
HB929/SB247: Establishes a surcharge on the conveyance tax upon the net capital gain from the transfer or conveyance of agricultural land.
HB375/SB467: Extends neighbor island surcharge on state general excise tax to 2045.
SB492: Authorizes extension of county GET surcharge through 2045.
SB628: Increases the GET by 1%. The additional money goes to a new teacher salary special fund and the school facilities special fund.
SB1033: New punitive excise tax on certain taxpayers failing to sell excess single-family residences. Proceeds go to a new housing down payment trust fund.
HB377/SB469: Conveyance tax hike. Establishes new rates for multifamily residential properties
HB752/SB673: Environmental Stewardship Fee: DLNR to collect a fee from visitors for a license to visit a state park, forest, hiking trail, or other state natural area.
