Taxes in Hawaii: State Tax Guide 2026
Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.
Taxes in Hawaii: State Tax Guide 2026
Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.
Hawaii has one of the highest overall tax burdens in the nation, featuring a steeply progressive income tax with a top rate of 11.00% and a broad-based General Excise Tax (GET) that functions like a sales tax. Combined with the extremely high cost of living, Hawaii’s tax landscape demands careful planning for residents and prospective movers.
Hawaii Income Tax Rates (2026)
Hawaii uses a progressive income tax system with twelve brackets. Rates below are for single filers:
| Tax Rate | Taxable Income Range |
|---|---|
| 1.40% | $0 – ~$2,400 |
| 3.20% | ~$2,401 – ~$4,800 |
| 5.50% | ~$4,801 – ~$9,600 |
| 6.40% | ~$9,601 – ~$14,400 |
| 6.80% | ~$14,401 – ~$19,200 |
| 7.20% | ~$19,201 – ~$24,000 |
| 7.60% | ~$24,001 – ~$36,000 |
| 7.90% | ~$36,001 – ~$48,000 |
| 8.25% | ~$48,001 – ~$150,000 |
| 9.00% | ~$150,001 – ~$175,000 |
| 10.00% | ~$175,001 – ~$200,000 |
| 11.00% | Over ~$200,000 |
Married filing jointly thresholds are approximately double these amounts.
Hawaii Standard Deduction (2026)
| Filing Status | Amount |
|---|---|
| Single | ~$2,200 |
| Married Filing Jointly | ~$4,400 |
| Head of Household | ~$3,212 |
Hawaii’s standard deduction is substantially lower than the federal amount, which means a larger portion of income is subject to state tax.
Notable Hawaii Tax Credits
- Low-Income Household Renters Credit: Up to ~$50 for qualifying renters with AGI under ~$30,000
- Food/Excise Tax Credit: ~$110 per exemption to offset the regressive nature of the GET
- Child and Dependent Care Credit: Based on qualifying expenses
- Renewable Energy Technologies Credit: Up to 35% of the cost of installing solar or wind energy systems (among the most generous in the nation)
- Capital Goods Excise Tax Credit: 4% credit for qualifying business equipment purchases
Sales Tax (General Excise Tax)
| Component | Rate |
|---|---|
| State General Excise Tax (GET) | 4.00% |
| Oahu surcharge | 0.50% |
| Effective combined rate (Oahu) | 4.50% |
| Other islands | 4.00% |
Hawaii does not technically have a “sales tax,” but the General Excise Tax (GET) functions similarly. A critical difference: the GET is levied on businesses for the privilege of doing business, and most businesses pass the cost to consumers. Unlike a traditional sales tax, the GET applies to virtually all goods and services, including groceries, medical services, and rent — making it one of the broadest consumption taxes in the country.
Note: Because the GET is technically a business tax, businesses often add a ~4.166% or ~4.712% charge (on Oahu) to invoices to cover the tax-on-tax effect.
Property Tax
| Metric | Amount |
|---|---|
| Average effective rate | ~0.32% |
| National average | 0.99% |
Hawaii has the lowest effective property tax rate in the nation. However, because home values are extremely high (median home price over ~$800,000), the absolute dollar amount can still be substantial.
Exemptions
- Homeowner exemption: ~$100,000 off assessed value for owner-occupied residences (varies by county)
- Home Preservation Limit: Caps annual assessment increases at a fixed percentage for owner-occupied homes
- Senior exemptions: Additional exemptions for homeowners 60–69 (
$140,000) and 70+ ($160,000) in Honolulu County
Example: A home valued at $900,000 in Honolulu with a $100,000 homeowner exemption and a residential rate of ~0.35% pays approximately ~$2,800/year — low relative to the home’s value but still meaningful.
How Hawaii Compares to National Averages
| Tax Type | Hawaii | National Average |
|---|---|---|
| Top income tax rate | 11.00% | ~5.0% |
| Effective rate (~$75K single) | ~7.0% | ~3.5% |
| GET (combined avg, Oahu) | 4.50% | 6.6% (sales tax) |
| Property tax (effective) | ~0.32% | 0.99% |
| Overall tax burden rank | Top 5 highest | — |
Who Benefits from Living in Hawaii
Hawaii may work well for:
- Homeowners — Extremely low property tax rates, especially with the homeowner exemption
- Solar energy adopters — Among the most generous renewable energy tax credits in the nation (35%)
- Retirees with moderate income — Social Security is tax-free and pensions from government plans are partially exempt
- Long-term residents on fixed budgets — Home Preservation Limit caps protect against assessment spikes
Hawaii may be costly for:
- High earners — The 11.00% top rate (third highest in the nation) kicks in at ~$200,000 for single filers
- Renters — The GET applies to rent, adding ~4% to housing costs on top of already sky-high rents
- Consumers — The GET applies to groceries, medical services, and nearly all other purchases
- Middle-income earners — Rates reach 8.25% at just ~$48,000 of taxable income
- Business owners — The GET is levied on gross revenue, not profit, which can be especially burdensome for low-margin businesses
Hawaii-Specific Considerations
- No tax on Social Security benefits — Hawaii fully exempts Social Security income
- Pension exclusion — Distributions from employer-funded pension plans may be partially excluded
- Capital gains taxed as ordinary income — No preferential state rate for long-term capital gains
- No state estate tax (as of 2023 repeal) — Hawaii repealed its estate tax effective for decedents dying after January 1, 2023
- General Excise Tax breadth — GET applies to services that most states do not tax, including medical services, rent, and financial services
- Cost of living amplifier — Hawaii’s cost of living is roughly 90% above the national average, which compounds the impact of consumption taxes
Key Takeaways
- Hawaii has the third-highest top income tax rate in the nation at 11.00%
- The General Excise Tax applies to nearly all goods and services, including groceries and rent
- Property taxes are the lowest in the nation by effective rate, though high home values mean significant absolute amounts
- The standard deduction is very low, increasing taxable income for most filers
- Generous renewable energy credits (35%) can offset some of the tax burden
- No state tax on Social Security benefits, and Hawaii has repealed its estate tax
Next Steps
- See how Hawaii compares at State Income Tax Comparison: All 50 States Ranked
- Calculate your federal bracket with the Tax Bracket Calculator 2026
- Explore deductions available to you — Tax Deductions You’re Probably Missing (Itemized vs Standard)
- Find a Hawaii CPA — Find a CPA Near You
- Consider tax-efficient strategies — Tax Planning Consultation