Hawaiʻi Taxpayers to See More Take-Home Pay Resulting From Historic Tax Cuts
  HONOLULU – In 2024, Governor Josh Green, M.D., and the Hawai‘i Legislature enacted Act 46, Session Laws of Hawai‘i 2024, the largest income tax cut in the state’s history.

Tax Announcement 2024-05
Adoption of Amended Hawaii Administrative Rules Section 18-235-61-06, Relating to Income Tax Withholding Tables for Tax Year 2025
  Pursuant to chapter 91, Hawaii Revised Statutes (HRS), the Department of Taxation amended section 18-235-61-06, Hawaii Administrative Rules (HAR), to incorporate updated income tax formulas and withholding tables for tax year 2025. The amended rule was adopted after a public hearing on November 19, 2024, and is effective on December 6, 2024. Booklet A, Employer’s Tax Guide, for tax year 2025, has also been updated and posted.

Persons authorized under agreements to collect rent (third party rent collectors) on behalf of owners of real property and transient accommodations located within Hawaii are required to file Form RCA-1 electronically. Form RCA-1 will be available for filing at Hawaii Tax Online starting on January 2, 2025.

Visit the Rental Collection Agreement Information page for more information.

For taxable years beginning after December 31, 2022, partnerships and S corporations may elect to pay Hawai’i income taxes at the entity level. Eligible members of an electing pass-through entity (PTE) may claim a Hawai’i income tax credit for the pro rata share of PTE taxes paid.

Visit the Pass-Through Entity Taxation page for more information.