For the 2025 taxable year beginning after December 31, 2024, the individual income tax bracket amounts were amended for all the filing statuses by increasing the income limits in each bracket. (Act 45, SLH 2024)
Changes to Credits
The following credits have been updated for 2025:
- The Pass-Through Entity Tax Credit - All qualified members claiming a credit for the PTE tax are required to add the qualified member’s share of taxes paid by the electing PTE to the qualified member’s taxable income.
- The Earned Income Tax Credit - Eliminated the unlimited carryforward on nonrefundable EITC for tax year 2022 and applies to taxable years beginning after December 31, 2025.
Changes to Exclusions
- Taxpayers may exclude up to $8,636 of their military reserve or Hawaii National Guard duty pay from their income, effective for taxable years beginning after December 31, 2024.
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