HI HB1127

Increases Hawaii state income tax standard deduction amounts effective for taxable years beginning after December 31, 2022: joint filers and surviving spouses from $4,400 to $6,000; heads of household from $3,212 to $4,500; single filers and 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 Consumer Price Index for All Urban Consumers for Honolulu over the prior two-year period.

Prevents downward adjustments to standard deduction amounts if the Consumer Price Index calculation would result in lower amounts; deductions remain at the most recently established level in such cases.

Exempts specific Internal Revenue Code provisions from Hawaii law, including those related to additional standard deductions for the aged or blind, real property tax deductions, disaster loss deductions, and motor vehicle sales tax deductions.