S.B. 2454 Summary

• Establishes new Hawaii state income tax brackets and rates for taxable years beginning after December 31, 2015, for joint filers, heads of household, and single/unmarried individuals.

• Creates a 0% tax rate on income up to $6,600 for joint filers and surviving spouses, replacing the previous 1.40% rate on the lowest income bracket.

• Adds new higher tax brackets with rates of 9.00%, 10.00%, and 11.00% for the highest income earners, with joint filers taxed at 11.00% on income over $400,000.

• Adjusts tax brackets for heads of household with a 0% rate on income up to $4,800 and new higher brackets with 9.00%, 10.00%, and 11.00% rates on income over $225,000.

• Modifies single filer brackets with a 0% rate on income up to $3,300 and adds new higher brackets with 9.00%, 10.00%, and 11.00% rates on income over $150,000.