H.B. 2385 Summary

• Amends Hawaii's personal income tax rates for taxable years beginning after December 31, 2020, for joint filers, heads of household, and single/unmarried individuals

• For joint filers: adds new tax brackets and rates up to 13% for income over $600,000 (previously capped at 11% for income over $400,000)

• For heads of household: extends top rate to 13% for income over $450,000 (previously 11% for income over $300,000)

• For single filers: introduces higher brackets with top rate of 13% for income over $300,000 (previously 11% for income over $200,000)

• Changes apply to all three filing categories with new intermediate tax brackets and corresponding marginal tax rates between 9-13%