HI HB1127

Increases Hawaii state income tax standard deduction amounts effective for taxable years beginning after December 31, 2022: joint filers from $4,400 to $6,000, head of household from $3,212 to $4,500, and single/married filing separately from $2,200 to $3,000.

Requires the Department of Taxation to adjust standard deduction amounts biannually on July 1 (effective the following January 1) based on the percentage change in the Consumer Price Index for All Urban Consumers for Honolulu over the preceding two-year period.

Prevents standard deduction amounts from decreasing; if CPI adjustments would result in lower amounts, deductions remain at the most recently established levels.

Maintains existing Hawaii tax law provisions that do not incorporate federal IRC sections related to additional standard deductions for elderly/blind individuals, disaster losses, and other itemized deductions.