State taxes: Hawaii

Hawaii collects income taxes from its residents using 12 brackets, ranging from 1.4% to 11%. 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% on the first $2,400 of taxable income.
• 3.2% on taxable income between $2,401 and $4,800.
• 5.5% on taxable income between $4,801 and $9,600.
• 6.4% on taxable income between $9,601 and $14,400.
• 6.8% on taxable income between $14,401 and $19,200.
• 7.2% on taxable income between $19,201 and $24,000.
• 7.6% on taxable income between $24,001 and $36,000.
• 7.9% on taxable income between $36,001 and $48,000.
• 8.25% on taxable income between $48,001 and $150,000.
• 9% on taxable income between $150,001 and $175,000.
• 10% on taxable income between $175,001 and $200,000.
• 11% on taxable income of $200,001 and above.

For married people 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.

Sales taxes

Hawaii does not have a sales tax. Instead, the state collects a 4% 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 0.5%. 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% surcharge to the general excise tax, effective Jan. 1, 2007, bringing that island’s excise tax rate to 4.5%. This added charge goes to fund Oahu’s mass transit system.

Personal and real property taxes

Personal property, such as cars or boats, is not subject to property tax.

Real property, land and improvements are taxed with assessments at 100% fair market value. Tax rates are per $1,000 net assessed value.

Property taxes are administered by the counties of 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% on estates of up to $1 million to 15.7% 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 via the Department of Taxation’s e-filing services.

Make sure you have a minister officiating your wedding; if the state determines your ceremony is a nonreligious “tourist wedding,” you’ll have to pay the state’s 4% 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.