Hawaii's Proposed Tax Bracket Will Be The Highest in the Nation

Due to a projected deficit, Hawaii proposes to create a new top bracket of 13% for filers with incomes above $500,000 (single filers) and $1 million (joint filers). So it impacts non-millionaires as well.

 Hawaii’s current top tax bracket of 11% is for filers with incomes above $325,000 (single filers) and $650,000 (joint filers).

 This proposal would be the highest tax bracket in the nation as California’s maximum tax bracket is 12.3%. However, due to a 1% mental health services tax on taxable income over $ million, the highest effective rate  in California is 13.3%.

Note: California’s mental health services tax is subject to the marriage penalty as both single and joint filers pay this tax once taxable income exceeds $1 million.