Hawaii

EARNED INCOME TAX CREDIT (EITC)

Rate (Fully-Refundable): 40 percent of the federal credit

Latest Legislative Action: In 2023, Gov. Josh Green passed HB954 (Act 163), doubling the state EITC until 2027.

Notes:

  • In 2022, HB510 extended the state EITC for another six years and made the tax credit refundable. In the same year, legislation was signed to make the tax credit permanent.1
  • In 2021, lawmakers declined to extend the state EITC which was set to expire at the end of 2022.
  • In January 2018, several lawmakers introduced legislation to make Hawaii’s EITC refundable.
  • In  July 2017, Hawaii enacted a nonrefundable state-level EITC worth 20 percent of the federal credit.
  • Lawmakers considered legislation in 2014 and 2016 that that would have created a refundable state EITC, but neither passed due to concerns of insufficient funding.

CHILD TAX CREDIT (CTC)

Hawaii does not currently offer a state-level CTC.

CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)

Rate (Fully-Refundable):

Calculated as a percentage of qualifying expenses, not as a percentage of the federal credit. However, the state credit covers the same expenses but is limited to $10,000 for one child/dependent and $20,00 for two children/dependents 2. Rates are dependent upon earned income levels as shown below.

 

INCOME PERCENTAGE
<$22,001 25%
$22,001-$24,000 24%
$24,001-$26,000 23%
$26,001-$28,000 22%
$28,001-$30,000 21%
$30,001-$32,000 20%
$32,001-$34,000 19%
$34,001-$36,000 18%
$36,001-$38,000 17%
$38,001-$40,000 16%
≥$40,001 15%

 

Eligibility Requirements: To be eligible for the credit, a filer must maintain a household that includes at least one qualified dependent and may not be claimed as a dependent themselves. The filer must also have qualifying care expenses.

Notes: The Hawai’i CDCTC is known as the Household and Dependent Care Services Tax Credit.

Source:

  1. HB2510, Hawai’i State Legislature
  2. HB954, Hawai’i State Legislature
  3. 2015 N-13 Resident Income Tax Forms and Instructions, Hawaii Department of Taxation
  4. Hawai’i Earned Income Tax Credit, State of Hawai’i Department of Taxation

For More State Information

Devin Thomas, Senior Policy Analyst for Taxes & Budget
Hawaii Appleseed Center for Law & Economic Justice

www.hiappleseed.org
(808) 587-7605
devin@hibudget.org