State taxes: Hawaii
Hawaii collects income taxes from its residents using 12 brackets, ranging from 1.4 percent to 11 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 $150,000.
- 9 percent on taxable income of $150,001 and $175,000.
- 10 percent on taxable income of $175,001 and $200,000.
- 11 percent on taxable income of $200,001 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 on the Hawaii Department of Taxation website.
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. More details on Hawaii's general excise and use tax can be found in the Department of Taxation's collection of excise tax forms and publications.
Oahu added a 0.5 percent surcharge to the general excise tax, effective Jan. 1, 2007, bringing that island's excise tax rate to 4.5 percent. This added charge goes to fund Oahu'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 website links above for jurisdiction details.
Inheritance and estate taxes
Hawaii does not collect any inheritance tax or gift tax.
Hawaii imposes an estate tax on property left by decedents after Jan. 25, 2012. The rates range from 10 percent on estates of up to $1 million to 15.7 percent on estates of more than $5 million. The full estate tax rate schedule is found at the end of Form M-6, Hawaii Estate Tax Return.
Other Hawaii tax facts
Hawaii taxpayers can file electronically, as well as check the status of their refunds. Details are at the Department of Taxation's Electronic Services Web page.
Make sure you've got a minister pronouncing you husband and wife. If the state determines your ceremony is a nonreligious "tourist wedding," you'll have to pay the state's 4 percent excise tax.
For more information, go to the Department of Taxation's website.
To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.