HB 1207 Summary

• Reduces Hawaii income tax burden by lowering tax rates and simplifying the tax bracket structure from thirteen brackets to four brackets.

• Implements new tax brackets effective for taxable years beginning after December 31, 2023, with a 0% tax rate on the lowest income levels for all filing statuses.

• For joint filers and surviving spouses: establishes brackets at $5,000 (0%), $54,000 (2.5%), $146,000 (5.0%), and $300,000+ (10.0%).

• For heads of household: establishes brackets at $3,800 (0%), $40,500 (2.5%), $109,500 (5.0%), and $225,000+ (10.0%).

• For unmarried individuals: establishes brackets at $2,500 (0%), $27,000 (2.5%), $73,000 (5.0%), and $150,000+ (10.0%).