Hawaii Tax Changes - December 2024
Week Of 12.02.2024
Corporate and Personal Income Tax
- Announcement: The Hawaii Department of Taxation has adopted amendments to administrative rules (Haw. Admin. Rules 18-235-61-06), effective December 6, 2024.
- Changes:
- Updated income tax formulas and withholding tables for tax year 2025.
- Legislative changes have increased the standard deduction amounts for tax year 2024.
- Income limits in each tax bracket have been raised for tax year 2025.
- Resources: Booklet A (Employer's Tax Guide) has been revised to reflect these changes. (Hawaii Dept. of Taxation Announcements No. 2025-05, December 4, 2024).
Property Tax Updates in Maui County
- Wildfire Tax Relief:
- Ordinances No. 5727 and 5728 (effective November 27, 2024) extend property tax relief for properties completely destroyed by the August 2023 Maui wildfires through the tax year ending June 30, 2026.
- Wildfire survivors can maintain their tax exemption for properties that were destroyed, damaged, or made inaccessible through December 31, 2026.
- Healthcare Provider Rental Exemption:
- Ordinance No. 5730 (effective November 27, 2024) provides property tax exemptions for dwelling units leased for 12 consecutive months to:
- State contractors providing emergency medical services.
- Healthcare facilities or agencies staffing these facilities.
- Healthcare professionals not residing full-time in the county.
- For tax years beginning on or after July 1, 2025, properties valued at 200,000orless∗∗willbefullyexempt.Forpropertiesexceedingthisvalue,theexemptionwillbe∗∗200,000orless∗∗willbefullyexempt.Forpropertiesexceedingthisvalue,theexemptionwillbe∗∗200,000.
- Ordinance No. 5730 (effective November 27, 2024) provides property tax exemptions for dwelling units leased for 12 consecutive months to:
- Child Care Facility Exemption: Further details on the increase in exemptions for child care facilities were mentioned but not fully provided.
Week Of 12.26.2024
Hawaii Personal Income Tax—Hawaii amends withholding tables to reflect income tax cut.
The Hawaii Department of Taxation announced it has updated its withholding tables to reflect legislative changes, which make incremental adjustments to the standard deduction amount and income tax brackets beginning in tax year 2024 through tax year 2031 (see State Tax Update, 06/05/2024). Starting in January 2025, employers withhold less taxes from employee paychecks. The withholding tables will be updated annually because the law provides that the amount of the standard deduction will increase for tax years 2024, 2026, 2028, 2030, and 2031, while the income tax brackets will be modified for tax years 2025, 2027, and 2029. (News Release 2024-09, Hawaii Dept. of Tax., 12/19/2024.)
Week Of 12.02.2024
Hawaii Corporate Income Tax—Hawaii announces 2025 income tax withholding tables.
The Hawaii Department of Taxation announced the adoption of amendments to administrative rules (Haw. Admin. Rules 18-235-61-06, effective 12/06/2024) to incorporate updated income tax formulas and withholding tables for tax year 2025, due to legislative changes increasing the standard deduction amounts for tax year 2024, and increasing the income limits in each income tax bracket for tax year 2025. Additionally, the Department announced that Booklet A (Employer's Tax Guide) has been revised for tax year 2025 to reflect the changes. (Hawaii Dept. of Taxation Announcements No. 2025-05, 12/04/2024.)
Hawaii Personal Income Tax—Hawaii announces 2025 income tax withholding tables.
The Hawaii Department of Taxation announced the adoption of amendments to administrative rules (Haw. Admin. Rules 18-235-61-06, effective 12/06/2024) to incorporate updated income tax formulas and withholding tables for tax year 2025, due to legislative changes increasing the standard deduction amounts for tax year 2024, and increasing the income limits in each income tax bracket for tax year 2025. Additionally, the Department announced that Booklet A (Employer's Tax Guide) has been revised for tax year 2025 to reflect the changes. (Hawaii Dept. of Taxation Announcements No. 2025-05, 12/04/2024.)
Hawaii Property Tax Hawaii—Maui County extends wildfire real property tax relief.
The County of Maui has adopted Ordinances No. 5727 (Bill No. 147) and 5728 (Bill No. 153), effective 11/27/2024, extending wildfire real property tax relief through the tax year ending June 30, 2026 for real property completely destroyed by the August 2023 Maui wildfires. Additionally, the ordinances allow wildfire survivors the option to maintain their exemption from tax year 2024 for a property that was destroyed, damaged, or made inaccessible by the wildfires, through December 31, 2026.
Hawaii Property Tax—Hawaii—Maui County adopts healthcare provider rental exemption.
The County of Maui has adopted Ordinance No. 5730 (Bill No. 160), effective 11/27/2024, providing that a dwelling unit will be exempt from property taxes if it is under a signed lease contract for 12 consecutive months to: a state contractor providing emergency medical services as part of the state emergency medical services system; a healthcare facility; an agency contracted by a healthcare facility to staff the facility with healthcare professionals; or a healthcare professional who is not a full-time county resident but is contracted by a healthcare facility or an agency contracted by a healthcare facility. For tax years beginning on or after July 1, 2025, the property is totally exempt if the value of the property is $200,000 or less, and if the value exceeds $200,000, the exemption is $200,000.
Hawaii Property Tax—Hawaii—Maui County increases child care facility exemption.
The County of Maui has adopted Ordinance No. 5726 (Bill. No. 145), effective 11/27/2024, providing that the amount of real property tax exemption for child care facilities will increase from $50,000 to $200,000.
Week Of 12.26.2024
Hawaii Personal Income Tax—Hawaii amends withholding tables to reflect income tax cut.
The Hawaii Department of Taxation announced it has updated its withholding tables to reflect legislative changes, which make incremental adjustments to the standard deduction amount and income tax brackets beginning in tax year 2024 through tax year 2031 (see State Tax Update, 06/05/2024). Starting in January 2025, employers withhold less taxes from employee paychecks. The withholding tables will be updated annually because the law provides that the amount of the standard deduction will increase for tax years 2024, 2026, 2028, 2030, and 2031, while the income tax brackets will be modified for tax years 2025, 2027, and 2029. (News Release 2024-09, Hawaii Dept. of Tax., 12/19/2024.)
Week Of 12.02.2024
Hawaii Corporate Income Tax—Hawaii announces 2025 income tax withholding tables.
The Hawaii Department of Taxation announced the adoption of amendments to administrative rules (Haw. Admin. Rules 18-235-61-06, effective 12/06/2024) to incorporate updated income tax formulas and withholding tables for tax year 2025, due to legislative changes increasing the standard deduction amounts for tax year 2024, and increasing the income limits in each income tax bracket for tax year 2025. Additionally, the Department announced that Booklet A (Employer's Tax Guide) has been revised for tax year 2025 to reflect the changes. (Hawaii Dept. of Taxation Announcements No. 2025-05, 12/04/2024.)
Hawaii Personal Income Tax—Hawaii announces 2025 income tax withholding tables.
The Hawaii Department of Taxation announced the adoption of amendments to administrative rules (Haw. Admin. Rules 18-235-61-06, effective 12/06/2024) to incorporate updated income tax formulas and withholding tables for tax year 2025, due to legislative changes increasing the standard deduction amounts for tax year 2024, and increasing the income limits in each income tax bracket for tax year 2025. Additionally, the Department announced that Booklet A (Employer's Tax Guide) has been revised for tax year 2025 to reflect the changes. (Hawaii Dept. of Taxation Announcements No. 2025-05, 12/04/2024.)
Hawaii Property Tax Hawaii—Maui County extends wildfire real property tax relief.
The County of Maui has adopted Ordinances No. 5727 (Bill No. 147) and 5728 (Bill No. 153), effective 11/27/2024, extending wildfire real property tax relief through the tax year ending June 30, 2026 for real property completely destroyed by the August 2023 Maui wildfires. Additionally, the ordinances allow wildfire survivors the option to maintain their exemption from tax year 2024 for a property that was destroyed, damaged, or made inaccessible by the wildfires, through December 31, 2026.
Hawaii Property Tax—Hawaii—Maui County adopts healthcare provider rental exemption.
The County of Maui has adopted Ordinance No. 5730 (Bill No. 160), effective 11/27/2024, providing that a dwelling unit will be exempt from property taxes if it is under a signed lease contract for 12 consecutive months to: a state contractor providing emergency medical services as part of the state emergency medical services system; a healthcare facility; an agency contracted by a healthcare facility to staff the facility with healthcare professionals; or a healthcare professional who is not a full-time county resident but is contracted by a healthcare facility or an agency contracted by a healthcare facility. For tax years beginning on or after July 1, 2025, the property is totally exempt if the value of the property is $200,000 or less, and if the value exceeds $200,000, the exemption is $200,000.
Hawaii Property Tax—Hawaii—Maui County increases child care facility exemption.
The County of Maui has adopted Ordinance No. 5726 (Bill. No. 145), effective 11/27/2024, providing that the amount of real property tax exemption for child care facilities will increase from $50,000 to $200,000.