HI HB1572

Amends Section 235-7 of Hawaii Revised Statutes to limit the exclusion from gross income for pension compensation to only those pensions resulting from past services performed within the State.

Currently, all pension income is excluded from Hawaii state income taxation; this bill restricts that exemption to in-state pensions only, making out-of-state pensions taxable.

Applies to taxable years beginning after December 31, 2023.

Targets individuals who have relocated to Hawaii to retire and receive pensions from employment or services performed outside the State, aiming to establish equity among Hawaii taxpayers and increase state revenue.