2022 State Tax Adjustments Efficient January 1, 2022TAX LAW-2026

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The Internal Revenue Service (IRS) also increased the standard deduction amount for 2022. The standard deduction is an automatic deduction all filers can take (unless you choose to take itemized deductions). Here are the new 2022 standard deduction amounts: Married filing jointly: $25,900 ($800 increase)
Hawaii will significantly modify its individual income tax brackets under HB 2404. Starting January 1, 2025, the lowest rate of 1.4 percent will apply to single filer income below $9,600 (up from $2,400 in 2024), and the highest rate of 11 percent will apply to income exceeding $325,000 (up from $200,000).
Higher standard deduction: Hawaii recently passed a tax cut bill and the first change begins this year with a higher standard deduction. The new deduction amounts are $4,400 for single filers and $8,800 for joint filers. As a result, you may pay less state income taxes.
For single taxpayers and married individuals filing separately, the standard deduction rises to $12,950 for 2022, up $400, and for heads of households, the standard deduction will be $19,400 for tax year 2022, up $600.
With rates ranging from 1.4% to 11%, the state has one of the highest top rates in the nation. But that 11% tax rate applies only to the highest of Hawaiis state income tax bracketsfor example, single filers making $200,000 or more.

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This regressivity in our states tax code is driven by factors such as our comparatively high reliance on sales and excise taxes for funding, preferential tax rates on capital gains, and the absence of a state child tax credit, among other things.
The Inflation Reduction Act of 2022 features tax credits for consumers and businesses that save money on energy bills, create jobs, make homes and buildings more energy efficient, utilize clean energy sources and lower greenhouse gas emissions that contribute to climate change and global warming.
The IRS in October announced the federal income tax brackets for 2025, which raised each income threshold by roughly 2.8%. By comparison, the brackets increased by about 5.4% in 2024.

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