What Is the 808 Tax and How Do I Claim It?

The term “808 tax” is a colloquialism for Hawaii’s Credit for Low-Income Household Renters. This is a state-level tax credit, not a tax itself, designed to provide financial relief to renters who have a limited income. It is claimed by filing Schedule X with your annual state income tax return. The purpose of this credit is to help offset the high cost of living for those renting in Hawaii by reducing their state tax liability.

Eligibility for the Credit

To qualify for the Credit for Low-Income Household Renters, a taxpayer must meet several specific conditions. A primary requirement is that the claimant must have resided in Hawaii for more than nine months during the tax year and paid more than $1,000 in rent. This rent must have been for a property that is subject to real property taxes, meaning individuals in military housing or other tax-exempt properties are not eligible.

For recent tax years, a taxpayer’s Hawaii adjusted gross income (AGI) had to be less than $30,000. It is important to check the latest requirements for the 2025 tax year, as income limits may be amended.

The individual claiming the credit cannot be claimed as a dependent on another person’s tax return. This rule ensures the credit benefits independent individuals and not, for example, a college student financially supported by their parents. There is also an age requirement; the person must be at least 15 years old.

Calculating the Credit Amount

The calculation for the Low-Income Household Renters Credit is based on the number of qualified exemptions a taxpayer can claim. For the 2024 tax year, the credit amount was $50 multiplied by the total number of these exemptions. However, this amount is subject to change for the 2025 tax year, as legislation could introduce a new credit structure.

A qualified exemption includes the taxpayer, their spouse if filing jointly, and any dependents they are eligible to claim on their Hawaii tax return. These individuals must also meet the residency requirements to be counted as a qualified exemption for this credit.

For instance, a married couple with two dependent children would be able to claim a total of four qualified exemptions. In this scenario, the calculation would be 4 exemptions multiplied by $50, resulting in a total tax credit of $200. This amount directly reduces the total tax they owe to the state.

How to Claim the Credit

To claim the credit, you must complete and attach Schedule X to your Hawaii income tax return; this schedule has replaced the former Form N-808. The official form can be downloaded from the Hawaii Department of Taxation website to ensure you have the most current version. Before you begin, you will need to gather several pieces of information:

• Your name and Social Security Number
• The name and address of your landlord for each rental property
• The total rent you paid, not including payments for utilities, parking, or security deposits
• Your adjusted gross income from your Hawaii tax return (Form N-11 or N-15)
• The total number of qualified exemptions you are claiming

Submitting Your Claim with Your Tax Return

After you have completed Schedule X, the final step is to submit it with your annual state income tax filing. The completed Schedule X must be attached directly to your Hawaii resident income tax return, Form N-11, or the part-year resident and nonresident return, Form N-15. It is important to ensure that both pages of the schedule are included with your return to avoid processing delays.

Once your return is processed by the Hawaii Department of Taxation, the credit amount you calculated will be applied against your total state tax liability. This reduces the amount of tax you owe. If the credit amount exceeds your tax liability, the overpayment may be issued to you as a refund.