2026 HAWAII TAX FILING CHANGES Updates for OAHU Taxpayers | DIAMOND HEAD Tax Group Honolulu Certified Tax Consultants

Diamond Head Tax Group 2026 HAWAII TAX FILING CHANGES Updates for OAHU Private Individuals and Businesses Taxpayers Tax Planning Tax Advisory Tax Preparation Certified Tax Consultants OAHU ISLAND Consulting Firm Call: 808-468-8041 — Diamond Head Tax Group OAHU HAWAII Tax Filing Changes for Private Individuals and Businesses throughout OAHU ISLAND by Certified Tax Consultants. Call: **808-468-8041**

Ready to begin your tax preparation? Here’s a quick update on the latest changes affecting Hawaii taxpayers.

HAWAII TAX BASICS TO KEEP IN MIND

Hawaii continues to have 12 individual income tax brackets—the highest number among all states. For tax year 2025, the state maintained the increased standard deduction amounts introduced under Act 46 and implemented updated bracket thresholds aimed at reducing taxes for many households.

NEW RULES AND TAX CHANGES FOR 2025 (FILED IN 2026)

A simpler year for Form 1099-K: If you use payment apps or online marketplaces, you may have heard about changing reporting rules. For 2025 tax returns, the IRS has restored the long-standing threshold—so you’ll only receive a 1099-K if you exceed $20,000 in payments and more than 200 transactions on a platform. Keep in mind: even if you don’t receive a form, all taxable income must still be reported.

SUPPORT FOR UNEXPECTED EXPENSES

Life happens—and when it does, the IRS now gives you a little more breathing room. Under SECURE 2.0, you may withdraw up to $1,000 from your retirement account once per year to cover an emergency expense without the usual early-withdrawal penalty. Your plan must permit it, the funds must be vested, and regular income taxes still apply—but this option can provide welcome relief when you need it most.

HAWAII'S STANDARD DEDUCTION AND BRACKETS

Hawaii continues to roll out its multi-year tax relief initiative. For 2025, the state standard deduction remains:

$4,400 for single filers
$6,424 for heads of household
$8,800 for joint filers

Revised income tax brackets are also in effect this year, helping reduce the tax burden for many local households.

Earned Income Tax Credit (EITC): If you have earned income and fall within the qualifying limits, the federal EITC can lower what you owe—or increase your refund. For the 2025 tax year, the maximum credit ranges from $649 (no qualifying children) up to $8,046 (three or more qualifying children).

Child Tax Credit (CTC): Eligible families may receive up to $2,200 per qualifying child, with as much as $1,700 refundable for 2025. Phase-outs begin at $200,000 for single filers and $400,000 for married couples filing jointly.

Most tax software and tax professionals automatically check your eligibility for both the EITC and CTC and guide you through the required documentation.

NEED HELP PREPARING YOUR TAXES

Here in Hawaii, several trusted programs are available for individuals who need help with their taxes.

VITA & TCE: The IRS-sponsored Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs provide free, dependable tax preparation services across the state. VITA typically serves individuals earning $69,000 or less, as well as people with disabilities and those with limited English proficiency. TCE is designed to support taxpayers age 60 and older.

Goodwill Hawaii: Each tax season, Goodwill Hawaii hosts free tax preparation clinics staffed by IRS-certified volunteers, offering additional community support for those who qualify.

2026 FILING DEADLINES (FOR YOUR 2025 RETURN)

Federal deadline: Your 2025 federal tax return must be filed by April 15, 2026. You may request an extension for additional filing time; however, any taxes owed are still due by the original deadline to avoid penalties and interest.

Hawaii deadline: Hawaii state tax returns are due April 20, 2026. The state grants an automatic six-month extension (until October 20, 2026) if you are expecting a refund or submit your estimated tax payment by the April deadline. Payments can be made using Form N-200V or through Hawaii Tax Online.

Honolulu & Oahu Communities We Proudly Serve

Diamond Head Tax Group OAHU provides trusted, professional tax preparation and advisory services to individuals, families, retirees, and business owners across Honolulu’s most established communities. We proudly serve clients throughout East Honolulu, Metro Honolulu, and premier residential areas across Oahu.

Kahala — 96816
Diamond Head — 96815
Hawaii Kai — 96825
Portlock — 96825
Waialae Iki — 96821
Aina Haina — 96821
Niu Valley — 96821
Kuliouou — 96821
Makiki Heights — 96822
Manoa — 96822
Tantalus — 96822
Pacific Heights — 96813
Nuuanu — 96817
Downtown Honolulu — 96813
Kakaako — 96814
Ala Moana — 96814
Waikiki — 96815

Ready to Prepare Your 2025 Hawaii Taxes?

Whether you’re a homeowner, investor, retiree, or business owner in Honolulu’s premier communities, Diamond Head Tax Group OAHU delivers accurate, strategic, and stress-free tax preparation tailored to Hawaii residents.

Schedule your confidential tax consultation today and file with confidence.