How much tax do you pay in Hawaii depends on what you earn, what you buy, what you own, and where on the islands you live. The state runs a progressive income tax from 1.4% up to 11%, a 4% general excise tax on almost every business transaction (4.5% on Oahu), and county-set property taxes that can be as low as $1.65 per $1,000 of value for owner-occupants or above $15 per $1,000 for short-term rentals. Visitors also pay a transient accommodations tax that rises to 11% in 2026, and larger estates owe a separate state estate tax starting at $5.49 million.
Hawaii Income Tax Brackets
Hawaii’s individual income tax has 12 brackets under Hawaii Revised Statutes Section 235-51, starting at 1.4% and topping out at 11%.1Hawaii Revised Statutes. Hawaii Code 235 – Tax Imposed on Individuals; Rates The bracket amounts are fixed by statute and do not adjust for inflation, so they stay the same until the legislature changes them.
For single filers, the ladder looks like this:2Hawaii Department of Taxation. Tax Year Information – 2025
- 1.4% on the first $9,600 of taxable income
- 3.2% to 6.8% on income from $9,600 up to $36,000, across four intermediate brackets
- 7.2% to 7.9% on income from $36,000 up to $125,000
- 8.25% on income from $125,000 to $225,000
- 9% to 10% on income from $225,000 to $325,000
- 11% on everything above $325,000
Married couples filing jointly hit the 1.4% bracket on the first $4,800 and the top 11% rate on taxable income above $400,000.1Hawaii Revised Statutes. Hawaii Code 235 – Tax Imposed on Individuals; Rates Head-of-household thresholds sit roughly midway between the single and joint amounts. Because the rates are marginal, only the income inside each bracket is taxed at that bracket’s rate. A single filer with $50,000 in taxable income reaches a top marginal rate of 7.6% and owes about $2,691 in state income tax — an effective rate near 5.4%.
General Excise Tax Instead of Sales Tax
Hawaii does not have a traditional sales tax. It has a General Excise Tax on businesses under Hawaii Revised Statutes Chapter 237, charged for the privilege of doing business in the state.3Hawaii Revised Statutes. Hawaii Revised Statutes Title 14 Chapter 237 – General Excise Tax Law The base state rate on retail transactions is 4% of gross proceeds.4Hawaii Department of Taxation. Chapter 237 HRS General Excise Tax Law State law lets sellers pass the tax through to buyers, so on your receipt it looks like a sales tax.
Counties can add a surcharge of up to 0.5%. Honolulu applies the full 0.5%, making the combined rate on Oahu 4.5%.5Hawaii Department of Taxation. General Excise Tax (GET) Information
What sets the GET apart from a normal sales tax is its reach. It applies to professional services, insurance commissions, rental income, and wholesale transactions. Wholesale and certain production activities are taxed at a reduced 0.5% rate.4Hawaii Department of Taxation. Chapter 237 HRS General Excise Tax Law If you collect rent, your rental income is subject to GET. That breadth is why Hawaii’s real consumption-tax burden often outpaces states with higher posted sales tax rates.
Property Tax Rates by County
Real property tax in Hawaii is entirely a county matter. Honolulu, Maui, Kauai, and Hawaii County each set their own rates and classify properties by use, with tax expressed in dollars per $1,000 of net taxable assessed value. Owner-occupied residential rates are actually among the lowest in the country, though the classification you fall into makes an enormous difference.
Selected rates for the fiscal year ending June 30, 2026:6City and County of Honolulu Real Property Assessment Division. State Report FY26 Final Tax Rates
- Owner-occupied residential: $1.65 per $1,000 on Maui (first $1.3 million of value), $2.59 on Kauai, $3.50 in Honolulu, and $5.95 in Hawaii County
- Commercial: $6.05 (Maui) to $12.40 (Honolulu)
- Hotel and resort: $11.55 (Hawaii County) to $13.90 (Honolulu)
- Short-term vacation rentals: $9.00 to $15.55, depending on county and value tier
Several counties use tiered rates that climb at higher values, particularly on investment and vacation properties. Maui, for instance, taxes the first $1 million of a non-owner-occupied property at $5.87 per $1,000 and applies $17.00 per $1,000 to assessed value above $3 million.6City and County of Honolulu Real Property Assessment Division. State Report FY26 Final Tax Rates
Home Exemption for Primary Residents
If you live in your Hawaii property as your primary residence, you can claim a home exemption that reduces the taxable assessed value before the rate applies. In Honolulu, the basic exemption is $120,000 for homeowners under 65 and $160,000 for those 65 and older.7City and County of Honolulu. Exemption FAQ – Tax Relief and Forms The other counties set their own amounts. The exemption is not automatic — you have to apply and show that you actually live in the home.
Transient Accommodations Tax on Short-Term Lodging
Short-term lodging in Hawaii carries a dedicated Transient Accommodations Tax under Hawaii Revised Statutes Chapter 237D. It applies to any room, apartment, or vacation rental customarily occupied for fewer than 180 consecutive days.8Cornell Law Institute. Hawaii Code of Rules 18-237D-1-07 – Transient Accommodations Defined Effective January 1, 2026, the state TAT rate rises from 10.25% to 11% of gross rental proceeds.9Hawaii Department of Taxation. Outline of the Hawaii Tax System as of July 1, 2025
Each county can add its own transient accommodations surcharge of up to 3%.9Hawaii Department of Taxation. Outline of the Hawaii Tax System as of July 1, 2025 Kauai charges the full 3%.10County of Kauai. Transient Accommodations Tax Add the 11% state TAT, up to 3% county TAT, and the GET that also applies to lodging revenue, and the total tax on a hotel night can top 18% of the room rate.
If you rent out a short-term unit, you must register with the Department of Taxation and display the registration ID. Operating without one triggers fines of at least $500 per day for a first violation, $1,000 per day for a second, and $5,000 per day for a third or later violation.11Hawaii Department of Taxation. Chapter 237D HRS Transient Accommodations Tax
How Hawaii Taxes Retirement Income
Hawaii treats retirees relatively well. Social Security benefits are not taxed at the state level, regardless of your total income.12Hawaii Department of Taxation. Taxing Pensions and Other Retirement Income Pensions from federal, state, or local government retirement systems are excluded from Hawaii gross income under HRS Section 235-7.13Hawaii Revised Statutes. Hawaii Code 235-7 – Other Provisions as to Gross Income, Adjusted Gross Income, and Taxable Income
The statute also excludes “any compensation received in the form of a pension for past services,” which can extend to private-sector pensions.13Hawaii Revised Statutes. Hawaii Code 235-7 – Other Provisions as to Gross Income, Adjusted Gross Income, and Taxable Income Distributions from 401(k) plans and traditional IRAs are generally taxable to the extent they represent pre-tax contributions and investment earnings, the same portions the IRS taxes. The Hawaii Social Security exclusion also does not affect federal treatment: the IRS may still tax up to 85% of your benefits if your combined income crosses the federal thresholds.
Hawaii Estate Tax
Hawaii is one of a small group of states that imposes its own estate tax. Under HRS Chapter 236E, estates of Hawaii residents (and Hawaii real property owned by nonresidents) can owe state estate tax when the taxable estate exceeds $5,490,000.14Hawaii Department of Taxation. Instructions for Form M-6 Hawaii Estate Tax Return That is well below the 2026 federal estate tax exemption of $15,000,000, so a Hawaii estate can owe state tax while owing nothing to the IRS.15Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
Rates run from 10% on the first $1 million of net taxable estate up to 20% on amounts above $10 million.14Hawaii Department of Taxation. Instructions for Form M-6 Hawaii Estate Tax Return Given Hawaii real estate values, a family home combined with other assets can push an estate over the threshold. The executor files Form M-6 with the Hawaii Department of Taxation.
Corporate Income Tax
C corporations doing business in Hawaii owe a state corporate net income tax under HRS Section 235-71:
- 4.4% on the first $25,000 of taxable income
- 5.4% on income from $25,001 to $100,000
- 6.4% on income above $100,000
These rates apply to net income after deductions. Corporations also owe the GET on Hawaii business activity, so the combined state burden includes both taxes. S corporations, partnerships, and LLCs are not subject to the corporate income tax; their income passes through to the owners and is taxed on individual returns at the personal rates above.
Federal Taxes on Top
Everything you earn in Hawaii is also subject to federal income tax. For 2026, the federal brackets for single filers run from 10% on the first $12,400 to 37% on income above $640,600. Married couples filing jointly reach the 37% rate at $768,700. The standard deduction is $16,100 for single filers and $32,200 for joint filers.15Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
Hawaii does not allow you to deduct state income tax on your state return, but you can deduct state and local taxes (including Hawaii income tax and property taxes) on your federal return if you itemize, up to the $10,000 cap. A high earner paying Hawaii’s top 11% rate plus the top federal 37% rate faces a combined marginal income tax rate approaching 48% before any deductions.