The state has launched a new online resource to help residents calculate their estimated tax savings through 2031 and learn about the state’s income tax cut.
Gov. Josh Green signed a law last year aimed at lowering Hawaiʻi's high cost of living through the largest tax cut in state history — about $5 billion over the next six years. The law took Hawaiʻi from having one of the highest income tax rates in the country to one of the lowest.
Act 46 incrementally increased the standard deduction and adjusted tax brackets for tax years 2024 through 2031, eliminating the state’s lowest brackets and lowering the rates for all brackets.
For example, a family of four making $100,000 a year currently pays about $7,000 in income taxes. In 2031, when the law is in full effect, they will only pay about $4,500.
The changes will be applied automatically when people file their 2024 state tax returns.
“With our historic tax cut in effect, thousands of working families statewide are now seeing more money in their paychecks and bigger tax refunds, with even more savings on the way,” Green said in a news release. “This means real incremental financial relief for local households—helping families cover essentials like groceries, rent and childcare."
The new website features a tax rate calculator, an FAQ section and other educational resources. For more information, visit TaxCutHawaii.org.
