HB 954 - Income Tax Adjustments Summary

• Increases standard deduction amounts effective for taxable years beginning after December 31, 2022: joint returns/surviving spouses to $10,000, heads of household to $7,500, and single filers/married filing separately to $5,000.

• Increases personal exemption amount from $1,144 to $2,288 for taxable years beginning after December 31, 2022.

• Establishes a "cost-of-living adjustment factor" based on the Urban Hawaii Consumer Price Index (July-to-July change) to annually adjust tax brackets, standard deductions, and personal exemptions beginning in 2024.

• Updates income tax bracket thresholds for all filing statuses (joint, head of household, single, and estates/trusts) for taxable years beginning after December 31, 2022, with corresponding rate adjustments.

• Removes income limitations that previously restricted the deduction for state and local property taxes to individual taxpayers earning under specified thresholds.