HI HB807

Reduces the maximum income tax withholding rate from 8 percent to 5 percent for each withholding period under Hawaii tax law.

Applies to all employees receiving wages subject to withholding, calculated based on estimated annual wages from current withholding period wages.

Intended to increase take-home pay for taxpayers and stimulate the local economy.

Effective July 1, 2011, with automatic repeal on June 30, 2013, after which the withholding rate reverts to 8 percent.