How Much Is Tax in Hawaii: Excise, Income, and Property Rates

Tax in Hawaii depends on what you’re buying, earning, or owning, but the headline numbers are these: the General Excise Tax, which functions like a sales tax, is 4.5% in every county; state income tax runs from 1.4% to 11% across twelve brackets; and short-term lodging carries a combined 13.25% accommodations tax on top of the GET. Property tax is set county by county and varies with how the land is used. Separate taxes apply to out-of-state purchases, corporate income, and larger estates.

What You Pay at the Register: General Excise Tax

Hawaii does not have a traditional retail sales tax. It has the General Excise Tax, imposed on businesses for the privilege of doing commercial activity in the state under Hawaii Revised Statutes Chapter 237.¹ Most businesses pass the tax through to customers as a line item, so from the buyer’s side it behaves like a sales tax.

The base rate depends on the type of activity:²

4.0% on retail sales of goods and services, construction contracting, rent, and most other commercial activity.
0.5% on wholesaling and on manufacturing or producing.
0.15% on insurance commissions.

Every county adds a 0.5% surcharge to the 4.0% rate, bringing the effective rate on retail transactions and services to 4.5% statewide. All four surcharges — in Honolulu, Hawaii County, Maui County, and Kauai County — remain in effect through December 31, 2030.³ The surcharge only applies to activity taxed at the 4.0% rate, so wholesale, manufacturing, and insurance commissions stay at their lower rates.

One difference from a mainland sales tax matters for budgeting: the GET applies to nearly every transaction, including groceries, rent, and professional services like legal or medical care. There is no broad grocery exemption.

State Income Tax Rates

Hawaii’s individual income tax has twelve brackets, starting at 1.4% on the lowest taxable income and reaching 11% at the top, under HRS Chapter 235.⁴ The structure that applies to the 2025 and 2026 tax years begins, for single filers, with the lowest tier covering $0 to $7,000, and the brackets climb from there.⁵ Because the system is graduated, only the income inside each bracket is taxed at that bracket’s rate.

Standard Deductions and Exemptions

You subtract the standard deduction and personal exemptions before the brackets apply. For the 2026 tax year, the standard deduction is $8,000 for single filers and married filing separately, $12,000 for head of household, and $16,000 for married filing jointly or qualifying widow(er).⁶

Each personal exemption is worth $1,144, with an additional exemption if you are 65 or older. If you are blind, deaf, or totally disabled with a certified impairment, you can claim a $7,000 disability exemption in place of the standard $1,144.⁶

Residency and Deadlines

Full-year residents owe Hawaii tax on all income regardless of where it was earned. Part-year residents and nonresidents pay only on income from Hawaii sources, such as wages for work done in the state or rent from Hawaii property.

For the 2025 tax year, individual returns are due April 20, 2026. An automatic six-month extension to October 20, 2026 is available without filing a form, but only if you are either due a refund or have paid at least 90% of your final liability by the April 20 deadline.⁷ The extension covers filing, not payment. Any unpaid balance after April 20 accrues penalties and interest.

Property Tax

Property tax in Hawaii is run entirely by the counties, not the state. Honolulu, Maui, Hawaii, and Kauai each set their own rates and run their own assessments.⁸ Effective rates in Hawaii are among the lowest in the country as a percentage of home value, but because island property values are high, the dollar bills can still be substantial.

Rates vary by land use. Counties sort properties into classes such as residential, commercial and industrial, agricultural, hotel and resort, and long-term rental, and apply a different rate to each. A single county may maintain eight or more rate classes, so two similar homes on different islands can carry very different bills.⁸

If a property is your primary residence, you can apply for a homeowner exemption that reduces your assessed value before the rate is applied. In Honolulu, the basic home exemption is $120,000, rising to $160,000 for homeowners aged 65 or older.⁹ The other counties run their own exemption programs with different thresholds. If you think your assessment is too high, you can appeal through your county’s Board of Review; each county sets its own filing deadline.⁸

Tax on Hotels and Short-Term Rentals

Lodging in Hawaii carries extra tax. Stays of fewer than 180 consecutive days are subject to the Transient Accommodations Tax under HRS Chapter 237D, which covers hotels, vacation rentals, visitor condominiums, and other short-term lodging.¹⁰

The state TAT is 10.25% of gross rental proceeds through December 31, 2030, and each county adds its own 3% surcharge, for a combined 13.25% on the nightly rate.¹¹ The TAT is separate from the GET, and both apply. A hotel bill in Hawaii typically shows the 13.25% TAT and the 4.5% GET as two line items on top of the room rate.

Anyone operating a short-term rental has to register with the Department of Taxation and obtain a certificate before advertising or accepting guests.

Use Tax on Out-of-State Purchases

Buying from an out-of-state seller that does not collect Hawaii’s GET doesn’t let you avoid the tax. You owe use tax on goods brought into the state, calculated on the “landed value” — the purchase price plus shipping, handling, insurance, and customs duties.¹²

The rate tracks how the item will be used: 4% (4.5% with the county surcharge) for goods imported for personal use, business overhead, or consumption, and 0.5% for goods imported for resale at retail or for lease. You can credit any sales or use tax already paid to another state on the same goods, up to the amount of Hawaii use tax owed. Individuals not in business who import goods occasionally report on Form G-26, due by the 20th of the month after the goods arrive.¹²

Corporate Income Tax

Corporations doing business in Hawaii pay income tax under HRS §235-71 at three graduated rates: 4.4% on taxable income up to $25,000, 5.4% on income over $25,000 up to $100,000, and 6.4% on income over $100,000.⁴ Returns are due on the 20th day of the fourth month after the close of the tax year, which is April 20 for calendar-year filers.⁶ Corporate income is also subject to the GET on the underlying business activity, so a Hawaii corporation carries both layers.

Estate Tax

Hawaii is one of the few states that levies its own estate tax, separate from the federal one. Under HRS Chapter 236E, estates valued above $5,490,000 are subject to Hawaii estate tax, graduated up to a top rate of 20% on estates over $10,000,000. The Hawaii threshold is well below the current federal exemption, so an estate that owes nothing federally can still owe Hawaii tax. For estate planning involving assets in the state, that figure is the one to watch.

1
Justia. Hawaii Revised Statutes Title 14, Chapter 237 – General Excise Tax Law
2
Department of Taxation. An Introduction to the General Excise Tax
3
Department of Taxation. County Surcharge on General Excise and Use Tax
4
Department of Taxation. Hawaii Revised Statutes Chapter 235 – Income Tax Law
5
Department of Taxation. Individual Tax Tables and Rate Schedules After December 31, 2024
6
Department of Taxation. Frequently Asked Questions
7
Department of Taxation. Tax Year Information – 2025
8
City and County of Honolulu. About Us – Real Property Assessment Division
9
Department of Budget and Fiscal Services. Exemption FAQ
10
Justia. Hawaii Revised Statutes 237D-2 – Imposition and Rates
11
Kauai County. Transient Accommodations Tax
12
Department of Taxation. An Introduction to the Use Tax