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): 4.43%
  • Gasoline Tax: 70.09 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 76.85 cents/gallon (Includes all state, local, and federal taxes)
  • * 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 $200,000 (Brackets as of June 2023)
  • Standard deduction: Single filing status: $2,200. 
  • 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: May be fully or partially taxable* 
    • Public Pensions: Exempt
  • Military Pay
    • Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income. $7,345 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.
Income tax comments: *Any portion of retirement income that is employee-funded is taxed.

 

Property Tax

  • Local municipalities average .29% of the property's assessed value
  • Calculation of assessed value: 100% of fair market value
  • Homestead exemption: Reduction in assessed value of $60,000 if under 60, $80,000 between age 60 and 69, $100,000 if over 70. An additional exemption of 20% of assessed value is also available.
  • Disabled Veterans: Relief programs vary by island.
  • 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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