This bill proposes an increase in the gross income tax rates for taxpayers with taxable income exceeding $2 million. Currently, the highest marginal tax rate of 10.75% applies to income over $1 million. Under the new provisions, this rate will only apply to income over $1 million but not exceeding $2 million. The bill introduces new graduated tax rates for higher income brackets: a 12% rate for income over $2 million but not exceeding $5 million, a 13% rate for income over $5 million but not exceeding $10 million, and a 14% rate for income exceeding $10 million.

The changes will take effect on January 1, 2027, and will apply to taxable years beginning on or after that date. The bill aims to adjust the tax structure to ensure that higher earners contribute a larger share of their income, thereby addressing income inequality and potentially increasing state revenue.