Bill > HB283

This bill aims to eliminate the state individual income tax in Hawaii by repealing Chapter 235, Part III of the Hawaii Revised Statutes, which currently governs state income taxation. The bill's legislative findings argue that reducing income tax burdens can stimulate economic growth, noting that nine other U.S. states currently do not impose a state income tax. If approved, the bill would apply to taxable years beginning after December 31, 2025, meaning that Hawaii residents would no longer be required to pay state income taxes starting in the 2026 tax year. The bill's primary motivation is to remove what it characterizes as a tax burden on Hawaii's workers and to potentially create conditions that could promote economic prosperity by allowing workers to retain more of their earnings.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=283&year=2025