HOUSE OF REPRESENTATIVES

H.B. NO.

234

THIRTY-THIRD LEGISLATURE, 2025

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to income tax.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Section 235-51, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (a) to read:

     "(a)  There is hereby imposed on the taxable income of every:

     (1)  Taxpayer who files a joint return under section 235-93; and

     (2)  Surviving spouse,

a tax determined in accordance with the following table:

     In the case of any taxable year beginning after December 31, 2017:

          If the taxable income is:     The tax shall be:

          Not over $4,800              1.40% of taxable income

          Over $4,800 but              $67.00 plus 3.20% of

            not over $9,600              excess over $4,800

          Over $9,600 but              $221.00 plus 5.50% of

            not over $19,200             excess over $9,600

          Over $19,200 but             $749.00 plus 6.40% of

            not over $28,800             excess over $19,200

          Over $28,800 but             $1,363.00 plus 6.80% of

            not over $38,400             excess over $28,800

          Over $38,400 but             $2,016.00 plus 7.20% of

            not over $48,000             excess over $38,400

          Over $48,000 but             $2,707.00 plus 7.60% of

            not over $72,000             excess over $48,000

          Over $72,000 but             $4,531.00 plus 7.90% of

            not over $96,000             excess over $72,000

          Over $96,000 but             $6,427.00 plus 8.25% of

            not over $300,000             excess over $96,000

          Over $300,000 but             $23,257.00 plus 9.00% of

            not over $350,000             excess over $300,000

          Over $350,000 but             $27,757.00 plus 10.00% of

            not over $400,000             excess over $350,000

          Over $400,000                $32,757.00 plus 11.00% of

                                         excess over $400,000.

     In the case of any taxable year beginning after December 31, 2024:

          If the taxable income is:     The tax shall be:

          Not over $19,200             1.40% of taxable income

          Over $19,200 but             $269.00 plus 3.20% of

            not over $28,800             excess over $19,200

          Over $28,800 but             $576.00 plus 5.50% of

            not over $38,400             excess over $28,800

          Over $38,400 but             $1,104.00 plus 6.40% of

            not over $48,000             excess over $38,400

          Over $48,000 but             $1,718.00 plus 6.80% of

            not over $72,000             excess over $48,000

          Over $72,000 but             $3,350.00 plus 7.20% of

            not over $96,000             excess over $72,000

          Over $96,000 but             $5,078.00 plus 7.60% of

            not over $250,000             excess over $96,000

          Over $250,000 but             $16,782.00 plus 7.90% of

            not over $350,000             excess over $250,000

          Over $350,000 but             $24,682.00 plus 8.25% of

            not over $450,000             excess over $350,000

          Over $450,000 but             $32,932.00 plus 9.00% of

            not over $550,000             excess over $450,000

          Over $550,000 but             $41,932.00 plus 10.00% of

            not over $650,000             excess over $550,000

          Over $650,000                $51,932.00 plus 11.00% of

                                         excess over $650,000.

     [In the case of any taxable year beginning after December 31, 2026:

          If the taxable income is:     The tax shall be:

          Not over $28,800             1.40% of taxable income

          Over $28,800 but             $403.00 plus 3.20% of

            not over $38,400             excess over $28,800

          Over $38,400 but             $710.00 plus 5.50% of

            not over $48,000             excess over $38,400

          Over $48,000 but             $1,238.00 plus 6.40% of

            not over $72,000             excess over $48,000

          Over $72,000 but             $2,774.00 plus 6.80% of

            not over $96,000             excess over $72,000

          Over $96,000 but             $4,406.00 plus 7.20% of

            not over $250,000             excess over $96,000

          Over $250,000 but             $15,494.00 plus 7.60% of

            not over $350,000             excess over $250,000

          Over $350,000 but             $23,094.00 plus 7.90% of

            not over $450,000             excess over $350,000

          Over $450,000 but             $30,994.00 plus 8.25% of

            not over $550,000             excess over $450,000

          Over $550,000 but             $39,244.00 plus 9.00% of

            not over $650,000             excess over $550,000

          Over $650,000 but             $48,244.00 plus 10.00% of

            not over $800,000             excess over $650,000

          Over $800,000                $63,244.00 plus 11.00% of

                                         excess over $800,000.

     In the case of any taxable year beginning after December 31, 2028:

          If the taxable income is:     The tax shall be:

          Not over $38,400             1.40% of taxable income

          Over $38,400 but             $538.00 plus 3.20% of

            not over $48,000             excess over $38,400

          Over $48,000 but             $845.00 plus 5.50% of

            not over $72,000             excess over $48,000

          Over $72,000 but             $2,165.00 plus 6.40% of

            not over $96,000             excess over $72,000

          Over $96,000 but             $3,701.00 plus 6.80% of

            not over $250,000             excess over $96,000

          Over $250,000 but             $14,173.00 plus 7.20% of

            not over $350,000             excess over $250,000

          Over $350,000 but             $21,373.00 plus 7.60% of

            not over $450,000             excess over $350,000

          Over $450,000 but             $28,973.00 plus 7.90% of

            not over $550,000             excess over $450,000

          Over $550,000 but             $36,873.00 plus 8.25% of

            not over $650,000             excess over $550,000

          Over $650,000 but             $45,123.00 plus 9.00% of

            not over $800,000             excess over $650,000

          Over $800,000 but             $58,623.00 plus 10.00% of

            not over $950,000             excess over $800,000

          Over $950,000                $73,623.00 plus 11.00% of

                                         excess over $950,000.]

     In the case of any taxable year beginning after December 31, 2025:

          If the taxable income is:     The tax shall be:

          Over $200,000 but             7.90% of taxable income

            not over $250,000            

          Over $250,000 but             $3,950.00 plus 8.25% of

            not over $350,000             excess over $250,000

          Over $350,000 but             $8,250.00 plus 9.00% of

            not over $450,000             excess over $350,000

          Over $450,000 but             $9,000.00 plus 10.00% of

            not over $550,000             excess over $450,000

          Over $550,000 but            $10,000.00 plus 11.00% of

            not over $650,000             excess over $550,000

          Over $650,000                $11,000.00 plus 12.00% of

                                         excess over $650,000."

     2.  By amending subsection (c) to read:

     "(c)  There is hereby imposed on the taxable income of (1) every unmarried individual (other than a surviving spouse, or the head of a household) and (2) on the taxable income of every married individual who does not make a single return jointly with the individual's spouse under section 235-93 a tax determined in accordance with the following table:

     In the case of any taxable year beginning after December 31, 2017:

          If the taxable income is:     The tax shall be:

          Not over $2,400              1.40% of taxable income

          Over $2,400 but              $34.00 plus 3.20% of

            not over $4,800              excess over $2,400

          Over $4,800 but              $110.00 plus 5.50% of

            not over $9,600              excess over $4,800

          Over $9,600 but              $374.00 plus 6.40% of

            not over $14,400             excess over $9,600

          Over $14,400 but             $682.00 plus 6.80% of

            not over $19,200             excess over $14,400

          Over $19,200 but             $1,008.00 plus 7.20% of

            not over $24,000             excess over $19,200

          Over $24,000 but             $1,354.00 plus 7.60% of

            not over $36,000             excess over $24,000

          Over $36,000 but             $2,266.00 plus 7.90% of

            not over $48,000             excess over $36,000

          Over $48,000 but             $3,214.00 plus 8.25% of

            not over $150,000             excess over $48,000

          Over $150,000 but             $11,629.00 plus 9.00% of

            not over $175,000             excess over $150,000

          Over $175,000 but             $13,879.00 plus 10.00% of

            not over $200,000             excess over $175,000

          Over $200,000                $16,379.00 plus 11.00% of

                                         excess over $200,000.

     In the case of any taxable year beginning after December 31, 2024:

          If the taxable income is:     The tax shall be:

          Not over $9,600              1.40% of taxable income

          Over $9,600 but              $134.00 plus 3.20% of

            not over $14,400             excess over $9,600

          Over $14,400 but             $288.00 plus 5.50% of

            not over $19,200             excess over $14,400

          Over $19,200 but             $552.00 plus 6.40% of

            not over $24,000             excess over $19,200

          Over $24,000 but             $859.00 plus 6.80% of

            not over $36,000             excess over $24,000

          Over $36,000 but             $1,675.00 plus 7.20% of

            not over $48,000             excess over $36,000

          Over $48,000 but             $2,539.00 plus 7.60% of

            not over $125,000             excess over $48,000

          Over $125,000 but             $8,391.00 plus 7.90% of

            not over $175,000             excess over $125,000

          Over $175,000 but             $12,341.00 plus 8.25% of

            not over $225,000             excess over $175,000

          Over $225,000 but             $16,466.00 plus 9.00% of

            not over $275,000             excess over $225,000

          Over $275,000 but             $20,966.00 plus 10.00% of

            not over $325,000             excess over $275,000

          Over $325,000                $25,966.00 plus 11.00% of

                                         excess over $325,000.

     [In the case of any taxable year beginning after December 31, 2026:

          If the taxable income is:     The tax shall be:

          Not over $14,400             1.40% of taxable income

          Over $14,400 but             $202.00 plus 3.20% of

            not over $19,200             excess over $14,400

          Over $19,200 but             $355.00 plus 5.50% of

            not over $24,000             excess over $19,200

          Over $24,000 but             $619.00 plus 6.40% of

            not over $36,000             excess over $24,000

          Over $36,000 but             $1,387.00 plus 6.80% of

            not over $48,000             excess over $36,000

          Over $48,000 but             $2,203.00 plus 7.20% of

            not over $125,000             excess over $48,000

          Over $125,000 but             $7,747.00 plus 7.60% of

            not over $175,000             excess over $125,000

          Over $175,000 but             $11,547.00 plus 7.90% of

            not over $225,000             excess over $175,000

          Over $225,000 but             $15,497.00 plus 8.25% of

            not over $275,000             excess over $225,000

          Over $275,000 but             $19,622.00 plus 9.00% of

            not over $325,000             excess over $275,000

          Over $325,000 but             $24,122.00 plus 10.00% of

            not over $400,000             excess over $325,000

          Over $400,000                $31,622.00 plus 11.00% of

                                         excess over $400,000.

     In the case of any taxable year beginning after December 31, 2028:

          If the taxable income is:     The tax shall be:

          Not over $19,200             1.40% of taxable income

          Over $19,200 but             $269.00 plus 3.20% of

            not over $24,000             excess over $19,200

          Over $24,000 but             $422.00 plus 5.50% of

            not over $36,000             excess over $24,000

          Over $36,000 but             $1,082.00 plus 6.40% of

            not over $48,000             excess over $36,000

          Over $48,000 but             $1,850.00 plus 6.80% of

            not over $125,000             excess over $48,000

          Over $125,000 but             $7,086.00 plus 7.20% of

            not over $175,000             excess over $125,000

          Over $175,000 but             $10,686.00 plus 7.60% of

            not over $225,000             excess over $175,000

          Over $225,000 but             $14,486.00 plus 7.90% of

            not over $275,000             excess over $225,000

          Over $275,000 but             $18,436.00 plus 8.25% of

            not over $325,000             excess over $275,000

          Over $325,000 but             $22,561.00 plus 9.00% of

            not over $400,000             excess over $325,000

          Over $400,000 but             $29,311.00 plus 10.00% of

            not over $475,000             excess over $400,000

          Over $475,000                $36,811.00 plus 11.00% of

                                         excess over $475,000.]

     In the case of any taxable year beginning after December 31, 2025:

          If the taxable income is:     The tax shall be:

          Over $100,000 but             7.90% of taxable income

            not over $125,000            

          Over $125,000 but             $1,975.00 plus 8.25% of

            not over $175,000             excess over $125,000

          Over $175,000 but             $4,125.00 plus 9.00% of

            not over $225,000             excess over $175,000

          Over $225,000 but             $4,500.00 plus 10.00% of

            not over $275,000             excess over $225,000

          Over $275,000 but             $5,000.00 plus 11.00% of

            not over $325,000             excess over $275,000

          Over $325,000                $5,500.00 plus 12.00% of

                                         excess over $325,000."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act, upon its approval, shall apply to taxable years beginning after December 31, 2025.

 

INTRODUCED BY:

_____________________________

 

 

 

 

 

 

Report Title:

Income Tax; Income Tax Brackets; Exemptions

 

Description:

Amends the income tax bracket for taxpayers filing a joint return and surviving spouses to exempt those taxpayers whose taxable income is $200,000 or less.  Amends the income tax bracket for unmarried individuals and married individuals who do not file a joint tax return with their spouse to exempt those taxpayers whose taxable incomes is $100,000 or less.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.