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Bill

Bill

SB 2587

RELATING TO CAPITAL GAINS TAX.

2026 Regular Session Introduced by Sharon Moriwaki and 1 co-sponsor

Hawaii proposes state capital gains tax on asset sales to increase revenue, potentially affecting investment behavior and wealth accumulation across income levels.

Referred to WAM.
#capitalgainstax #increase
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Bill Summary · SB 2587

Legislative bill overview

SB 2587 would establish a capital gains tax in Hawaii, likely imposing a state-level tax on profits from the sale of certain assets such as stocks, real estate, and other investments. The bill is currently in early legislative stages, having just passed first reading and been referred to the Ways and Means Committee for further review.

Why is this important

A capital gains tax could significantly affect Hawaii's investment climate, personal wealth accumulation, and state revenue. It would impact residents who sell appreciated assets, potentially influencing investment decisions, business relocations, and the state's competitiveness compared to other states without capital gains taxes.

Potential points of contention

  • Revenue vs. economic impact: Proponents argue it generates needed state revenue for public services, while opponents contend it may discourage investment, business expansion, or cause wealthy residents and businesses to relocate
  • Definition and scope: Disagreement likely over which asset types are taxed, holding periods before tax applies, and whether primary residences or retirement accounts are exempt
  • Regressive concerns: Questions about whether the tax disproportionately affects middle-class savers and retirees on investment income versus high-net-worth individuals with sophisticated tax planning

Compiled from official sources — confirm details with the bill’s official record.

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