Earned Income Tax Credit^

Income Tax Rate: Graduated 1.4-8.25 percent

State EITC: No

Notes/News: In March 2013, the Senate passed SB301SD2, a bill that would have created a state EITC. A version of the bill passed in the House on March 19. Both bills then went to a conference committee but were deferred until next year due to cost. The bills will start in the conference committee next year, and advocates are preparing for a tough fight.

The bill was re-introduced in January 2014, but despite strong bipartisan support, was not passed due to insufficient funding.

Reports/Materials: Cutting Taxes to Strengthen the Economy and Boost Hawai’i’s Families: A Refundable State EITC, Hawai’i Appleseed Center for Law and Economic Justice, January 2016

Error Rates and the Earned Income Tax Credit Program, Hawai’i Appleseed Center for Law and Economic Justice, March 2013

Hawaii State & Local Taxes, from Who Pays? A Distributional Analysis of the Tax Systems in All 50 States, Institute on Taxation and Economic Policy, January 2013

The State of Poverty in Hawaii & How to Restore Our Legacy of Fairness, Hawai’i Appleseed Center for Law and Economic Justice, April 2012

The Impact of Hawai’i’s Income Tax on Low-Income Families: An Update, Center on Budget and Policy Priorities, May 2006

Hawai’i: State and Local Taxes in 2007, Institute on Taxation and Economic Policy, November 2009

Articles: Earned Income Credit Can Lift Working Families out of Poverty, Honolulu Star Bulletin, April 8, 2007

Editorial: OK Income Tax Credit With Standard Deduction, Honolulu Star Bulletin, March 30, 2007

Lawmakers Hope to Ease Tax on Poor, Honolulu Star Bulletin, March 28, 2007

Child Tax Credit^

State Credit: No

Child and Dependent Care Tax Credit^

State Credit: Yes

Refundable: Yes

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

Formula: Hawaii’s credit is calculated as a percentage of qualifying expenses. The credit is independent of the federal CDCTC but covers the same expenses as the federal credit, expect that expenses are limited to $2,400 for one child/dependent and $4,800 for two children/dependents. Filers with incomes below $22,001 are eligible for a credit equal to 25 percent of their qualifying expenses. The percentage reduces by 1 percent for each additional $2,000 in income up to $40,000. Filers with income exceeding $40,000 may claim 15 percent of eligible expenses.

Property Tax Circuit Breaker^

Circuit Breaker: No

Notes/News: Some counties, including Honolulu and Hawaii offer property tax credits to low-income seniors. For more information on those programs, contact the relevant county’s Department of Revenue.