HI HB858

Reduces individual income tax rates by approximately 3% for taxable years beginning after December 31, 2023, for all income brackets below the highest tax brackets.

For joint filers and surviving spouses, income up to $400,000 receives the reduced rates; for heads of household, up to $300,000; for single filers, up to $200,000.

Lowers the lowest tax bracket from 1.40% to 0% on the first tier of income, with subsequent brackets reduced proportionally (e.g., second bracket from 3.20% to 0.20%, third from 5.50% to 2.50%).

Maintains the highest marginal tax rate of 11% on income exceeding specified thresholds ($400,000 for joint filers, $300,000 for heads of household, $200,000 for single filers).

Applies to taxable years beginning after December 31, 2023, with the tax calculation methodology remaining the same except for the reduced percentages across brackets.