HB 2779 Summary

• Amends Hawaii's income tax standard deduction amounts under Section 235-2.4, Hawaii Revised Statutes, with incremental increases scheduled through 2033.

• Current standard deduction amounts remain at $4,400 (joint/surviving spouse), $3,212 (head of household), $2,200 (single), and $2,200 (married filing separately).

• Establishes phased increases beginning in 2027: $10,000/$7,500/$5,000/$5,000 (2027-2028); $16,000/$12,000/$8,000/$8,000 (2029-2030); $18,000/$13,500/$9,000/$9,000 (2031-2032); $20,000/$15,000/$10,000/$10,000 (2033); and $24,000/$18,000/$12,000/$12,000 (2034 and beyond).

• Excludes certain federal tax deductions from Hawaii law, including additional standard deductions for elderly/blind, property tax deductions, disaster loss deductions, and motor vehicle sales tax deductions.

• Takes effect July 1, 3000, and applies to taxable years beginning after December 31, 2026.