In its 2023 session, the Hawaiʻi Legislature proposed a tax on “the activity of sustaining excessive accumulations of wealth.” This wealth tax was a 1 percent tax on Hawaiʻi-based individual net worth in excess of $20 million. The tax applied to individuals, whether single or married, who held assets in Hawaiʻi regardless of whether the individuals were state residents. If a wealth tax had been paid in a different state for the same asset, that amount could be offset against any amount of Hawaiʻi wealth taxes due. The bill left the definition of net worth to the Hawaiʻi State Revenue Department but listed that it would at least include real property, stocks, bonds, business interests, cash, and farm assets.

The bill advanced to the Hawaiʻi Legislature’s Ways & Means Committee, but has not progressed any further. This was the second session in which the bill had been introduced, but lacked support in the Legislature to get beyond the committee.

In committee hearings, Will Caron of the nonprofit advocacy organization Hawaiʻi Appleseed Center for Law & Economic Justice said that current tax “loopholes” help the affluent residents more than those with limited financial means, and it is “time for the wealthiest among us to pay their fair share.”