Hawai‘i residents can estimate their income tax savings online

Gov. Josh Green, M.D., and the state Department of Taxation today introduced TaxCutHawaii.org, a new online resource designed to help working individuals and families learn about the state’s income tax cut and calculate their estimated tax savings through 2031.

“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. “This means real incremental financial relief for local households—helping families cover essentials like groceries, rent and childcare. I thank the Legislature for enacting the largest tax cut Hawai‘i has ever seen, making life more affordable for kama‘āina.”

The launch of this website demonstrates the state’s commitment to ensuring residents understand the tax law for future planning. The website features:

• A Tax Rate Calculator – Allows individuals and families to estimate their tax reductions and take-home income
• A Comprehensive FAQ Section – Answers frequently asked questions for taxpayers and businesses about the tax cut, changes to withholding amounts  and potential savings
• Educational Resources – Provides information on the new Hawai‘i tax brackets and what the tax relief means for financial planning

In 2024, Green and the Legislature enacted Act 46, Session Laws of Hawai‘i 2024, marking the largest income tax cut in the state’s history. This law incrementally increases the standard deduction and adjusts income tax brackets from tax year 2024 through tax year 2031.

The changes are automatically applied when taxpayers file their 2024 state tax return. As of Jan. 1, 2025, employers and payroll providers have implemented the Department of Taxation’s updated withholding tables. As a result, employees should be seeing less state income tax withheld from their paychecks compared to 2024.

While all taxpayers are seeing savings, households earning $150,000 or less will see the largest percent increase in after-tax income. For example, a family of four making $88,000 a year will save about $20,000 in state taxes over the next five years.
 
For more information, visit TaxCutHawaii.org.