Hawaii

Sales Tax*

  • Statewide: 4.0%
  • Counties can levy an additional sales tax of no more than 0.5%.
  • Current average sales tax (with local taxes included): 4.5%
  • Common Exceptions at State Level:
    • Prescription Medicine: Exempt
  • Gasoline Tax: 36.90 cents/gallon (Includes all state and federal taxes; local tax varies by island)
  • Diesel Fuel Tax: 42.90 cents/gallon (Includes all state and federal taxes; local tax varies by island)

* Hawaii imposes an excise tax on business in lieu of a sales tax on customers, but the tax is often passed on to the customer.

Personal Income Tax

  • Personal Income Tax Rate Range: Twelve brackets from 1.4% to 11.0% on income more than $325,000 (Calculate your tax rate)
  • Standard deduction: Single filing status: $4,400. 
  • Personal Exemption Allowance: $1,144. Dependent Exemption: $1,144
  • Itemized Deductions Allowed?: Yes, subject to limitations.
  • Retirement Income
    • Social Security: Exempt
    • IRAs: May be fully or partially taxable*
    • 401Ks/Defined contribution employer retirement plans: May be fully or partially taxable* 
    • Private pensions: Exempt 
    • Public Pensions: Exempt
  • Military Pay
    • Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income. $8,082 of pay for Army Reserve and Hawaii National Guard is exempt.
    • Military Retirement Pay: Exempt
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Exempt.

*Any portion of retirement income that is employee-funded is taxed.

Property Tax

  • Local municipalities average .27% of the property's assessed value
  • Calculation of assessed value: 100% of fair market value
  • Homestead exemption: Reduction in assessed value of $50,000 if under 60, $85,000 between age 60 and 64, $90,000 between age 65 and 69, $105,000 between age 70 and 74, $110,000 between age 75 and 79, and $125,000 if 80 or over. An additional exemption of 20% of assessed value is also available.
  • Disabled Veterans/Surviving Spouses: Relief programs vary by island.
  • Blind or Deaf, Totally Disabled, or Hansen's Disease: $25,000 reduction in assessed value if meet value requirements.
  • Personal Property Tax: Yes. Rates and exemptions vary.

Inheritance & Estate Taxes: Estates over $5.49 million are subject to a tax between 10% and 20%.

Department of Revenue Website: https://tax.hawaii.gov

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