H.B. 858 Summary

• Reduces Hawaii income tax rates by 3% for all income brackets below the top tier, effective for taxable years beginning after December 31, 2023.

• Lowers rates for married joint filers with income under $400,000, single filers under $200,000, and heads of household under $300,000.

• Modifies tax tables for individuals, estates, and trusts with the lowest bracket ($2,400-$4,800 for single filers) reducing from 1.40% to 0% tax rate.

• Maintains the 11% top tax rate for high earners while reducing intermediate rates (e.g., 8.25% becomes 5.25% for certain brackets).

• Applies retroactively to all taxable years beginning after December 31, 2023, providing broad-based income tax relief across lower and middle-income brackets.