An Act To Impose An Additional Tax On Certain Unearned Income

LD 1047 imposes a new 4% tax on capital gains income (profits from selling investments like stocks or property) that exceed specific annual thresholds. The tax applies to single filers and married individuals filing separately above $250,000, heads of households above $375,000, and married couples filing jointly above $500,000. This tax will take effect for tax years beginning January 1, 2025, and applies only to capital gains earned above these limits. It directly affects high-income earners who realize significant investment profits, increasing their tax burden on the portion of gains exceeding these thresholds.