Hawaii collects income taxes from its residents using nine brackets, ranging from 1.4 percent to 8.25 percent. Rather than collecting a sales tax on purchases by consumers, Hawaii imposes a general excise tax on businesses. More on Hawaii taxes can be found in the tabbed pages below.
|Personal income tax|
|Hawaii collects income taxes from its residents at the following rates.
For single taxpayers:
-- 1.4 percent on the first $2,400 of taxable income
-- 3.2 percent on taxable income between $2,401 and $4,800
-- 5.5 percent on taxable income between $4,801 and $9,600
-- 6.4 percent on taxable income between $9,601 and $14,400
-- 6.8 percent on taxable income between $14,401 and $19,200
-- 7.2 percent on taxable income of $19,201 and $24,000
-- 7.6 percent on taxable income of $24,001 and $36,000
-- 7.9 percent on taxable income of $36,001 and $48,000
-- 8.25 percent on taxable income of $48,001 and above.
For married persons filing joint returns, the rates remain the same but the income brackets are doubled.
|File Form N-11, individual income tax return, by April 20. Other forms can be found here.|
|Individual tax return Form N-12, used in prior tax years, was discontinued for the 2007 filing season.|
| ||Hawaii does not have a sales tax. Instead, the state collects a 4 percent general excise tax, which is assessed on all business activities, including retail sales, commissions, rental income and services.|
| ||Other activities, such as wholesale sales, are taxed at one-half of 1 percent. For differences between a sales tax and Hawaii's general excise tax, check out the state's general excise tax brochure.|
|Oahu adds a 0.5 percent surcharge to the general excise tax, effective Jan. 1, 2007. This revenue goes to fund Honolulu County's mass transit system.|
|Personal and real property taxes|
|Personal property such as cars or boats are not subject to property tax.|
|Real property, land and improvements are taxed with assessments at 100 percent "fair market value." Tax rates are per $1,000 net assessed value.|
|Property taxes are administered by the counties: Honolulu, Hawaii, Maui and Kauai.|
|Exemptions are allowed for owner-occupied homes, with multiple exemptions based on age. Specific exemption amounts may vary by county. Check the Web site links above for jurisdiction details.|
|Inheritance and estate taxes|
| ||There is no inheritance tax and limited Hawaii estate tax related to federal estate tax collection.|
|Other Hawaii tax facts|
|Make sure you've got a minister pronouncing you husband and wife. If the state determines your ceremony is a non-religious " tourist wedding," you'll have to pay the state's 4 percent excise tax.|
|For more information, go to the state's Web site.|
|To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.|
-- Updated: Feb. 4, 2008