Addressing Affordability: Unprecedented Tax Reform

Supporting local families has been a mission for the Green Administration since day one. In December 2022, the Administration introduced the first phase of the Green Affordability Plan (GAP), which lowered the cost of living, doubled the earned income tax credit and food tax credit, and improved the existing child and dependent tax credit. The measure creates about $88 million in annual savings for Hawai‘i families.

The second phase of GAP was signed into law this year, introducing the largest income tax cut in Hawai‘i’s history for low- and middle-income families. By eliminating the lowest tax brackets in odd years and lowering tax rates in even years, the administration aims to reduce income tax payments by 71% by 2031. This means that a family of four with a median income of $88,000 will see an additional $3,613 in take-home pay by the end of the decade.

Cutting taxes and providing ways for people to keep more money in their paychecks will contribute to Hawai‘i’s economy and helps ease some of the pressure on our families’ pocketbooks. There are still too many local families who are moving away, the state of Hawai‘i must reduce the cost of housing, food and health care to make Hawai‘i more affordable for our people.