HI HB807

Reduces the maximum income tax withholding rate from 8% to 5% for each withholding period under Hawaii Revised Statutes Section 235-61(c).

Aims to increase take-home pay for taxpayers and revitalize the local economy by decreasing the amount of income tax withheld from wages.

Applies effective July 1, 2011, and is repealed on June 30, 2013, with the withholding rate reverting to 8% after the sunset date.

Maintains all other withholding calculation requirements, including assumptions about annual wages, deductions, exemptions, and filing status.