Office Of The Governor News Release: Governor Ige Signs Tax Refund, Minimum Wage
Statement
Gov. David Ige signed into law HB2510 Relating to Income (Act 114) and SB514 Relating to the General Fund (Act 115) today.
Act 114 increases the minimum wage for the first time since 2018, from $10.10 per hour to $12.00 per hour starting Oct. 1, 2022. The minimum wage will then rise by $2.00 increments according to the following schedule:
$14.00 per hour starting Jan. 1, 2024
$16.00 per hour starting Jan. 1, 2026, and
$18.00 per hour starting Jan. 1, 2028
"More than 190,000 workers in Hawaiʻi will benefit from these wage increases. This will help working families pay for housing, food, healthcare, and other necessities," said Gov. Ige. "The minimum wage increases will also give our economy a boost, as these families have more income to purchase what they need from local businesses."
Act 114 also makes the Earned Income Tax Credit permanent and refundable, increasing the income of working families, which will lead to greater stability for Hawaiʻi's keiki.
The second bill, now Act 115, also puts more money directly into the pockets of Hawaiʻi residents by providing tax refunds to taxpayers and their dependents.
Gov. Ige first proposed a tax refund in his 2022 State of the State address given the strong revenue projections, and the state Legislature was able to increase the amount that will be returned to Hawaiʻi taxpayers.
Act 115 provides a tax refund of $300 for taxpayers who earn less than $100,000 a year (or couples earning less than $200,000), and $100 for taxpayers who earn $100,000 or more (or couples earning $200,000 or more).
The Department of Taxation anticipates that it will begin issuing the tax refunds in the last week of August. It will provide more details in the coming days.
"At the start of the 2022 legislative session, we made a commitment to support programs and policies that would help our residents get back on their feet. Both bills represent a collaborative effort to bring the people of Hawaiʻi some relief as we continue to recover from the two-year pandemic," Gov. Ige said.
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