Tax Filing Tips for the 2025 Tax Season
  HONOLULU – The Hawaiʻi Department of Taxation (DOTAX) announced that tax season has officially begun and is providing the following information to inform taxpayers on ways to avoid unnecessary delays and frustration during the filing process.

Tax Announcement 2025-01
Temporary Administrative Rules Related to Pass-Through Entity (PTE) Taxation and Third-Party Rent Collectors
  Pursuant to section 231-10.7, Hawaii Revised Statute (HRS), the Department of Taxation (Department) promulgated Temporary Administrative Rules for sections 18-235-201-01 through 18-235-201-09, 18-237-200-01 through 18-237-200-25, and 18-237D-200-01 through 18-237D-200-25 (“Temporary Rules”). Temporary Administrative Rules sections 18-235-200-01 through 18-235-200-09 relating to PTE taxation have been repealed. These changes to the Temporary Rules are effective January 2, 2025, and will expire on July 2, 2026.

Hawaiʻi Taxpayers to See More Take-Home Pay Resulting From Historic Tax Cuts
  HONOLULU – In 2024, Governor Josh Green, M.D., and the Hawai‘i Legislature enacted Act 46, Session Laws of Hawai‘i 2024, the largest income tax cut in the state’s history.

Persons authorized under agreements to collect rent (third party rent collectors) on behalf of owners of real property and transient accommodations located within Hawaii are required to file Form RCA-1 electronically. Form RCA-1 will be available for filing at Hawaii Tax Online starting on January 2, 2025.

Visit the Rental Collection Agreement Information page for more information.

For taxable years beginning after December 31, 2022, partnerships and S corporations may elect to pay Hawai’i income taxes at the entity level. Eligible members of an electing pass-through entity (PTE) may claim a Hawai’i income tax credit for the pro rata share of PTE taxes paid.

Visit the Pass-Through Entity Taxation page for more information.