Wednesday, June 3, 2009

Hawaii Increases Income Tax

On May 8, 2009 a law passed to raise Hawaii's income tax. For taxable years beginning after December 31, 2008, Act 60 increases the income tax for the highest income bracket. Increases to the income brackets, by Act 60, will be repealed on December 31, 2015 and the rates, in effect prior to January 1, 2009, will automatically be reenacted.


For the majority of taxpayers, this means:

Taxpayers who file a joint return will pay:
9.00% on taxable income over $300,000, but not over $350,000;
10.00% on taxable income over $350,000, but not over $400,000; and
11.00% on taxable income over $400,000.

Heads of a household will pay:
9.00% on taxable income over $225,000, but not over $262,500;
10.00% on taxable income over $262,500, but not over $300,000; and
11.00% on taxable income over $300,000.


Unmarried individuals and married individuals who file separately will pay:
9.00% on taxable income over $150,000, but not over $175,000;
10.00% on taxable income over $175,000, but not over $200,000; and
11.00% on taxable income over $200,000.

For more specific information on the income tax change and/or the personal exemption, and standard deduction changes see http://www.state.hi.us/tax/announce/ann09-04.pdf

A payroll software makes state income tax changes simple. Payroll Mate automatically updates federal and state income tax withholding tables for their customers.



Download a free demo of Payroll Mate: http://www.realtaxtools.com/Downloads/PayrollMateSetup.exe