tax

Hawaii



Hawaii collects income taxes from its residents using nine brackets, ranging from 1.4 percent to 8.25 percent. Rather than collecting a sales tax on purchases by consumers, Hawaii imposes a general excise tax on businesses. More on Hawaii taxes can be found in the tabbed pages below.

Income
Sales
Property
Estate
Other
Personal income tax
Hawaii collects income taxes from its residents at the following rates.

For single taxpayers:
-- 1.4 percent on the first $2,400 of taxable income
-- 3.2 percent on taxable income between $2,401 and $4,800
-- 5.5 percent on taxable income between $4,801 and $9,600
-- 6.4 percent on taxable income between $9,601 and $14,400
-- 6.8 percent on taxable income between $14,401 and $19,200
-- 7.2 percent on taxable income of $19,201 and $24,000
-- 7.6 percent on taxable income of $24,001 and $36,000
-- 7.9 percent on taxable income of $36,001 and $48,000
-- 8.25 percent on taxable income of $48,001 and above.

For married persons filing joint returns, the rates remain the same but the income brackets are doubled.
File Form N-11, individual income tax return, by April 20. Other forms can be found here.
Individual tax return Form N-12, used in prior tax years, was discontinued for the 2007 filing season.
Sales tax
 Hawaii does not have a sales tax. Instead, the state collects a 4 percent general excise tax, which is assessed on all business activities, including retail sales, commissions, rental income and services.
 Other activities, such as wholesale sales, are taxed at one-half of 1 percent. For differences between a sales tax and Hawaii's general excise tax, check out the state's general excise tax brochure.
Oahu adds a 0.5 percent surcharge to the general excise tax, effective Jan. 1, 2007. This revenue goes to fund Honolulu County's mass transit system.
Personal and real property taxes
Personal property such as cars or boats are not subject to property tax.
Real property, land and improvements are taxed with assessments at 100 percent "fair market value." Tax rates are per $1,000 net assessed value.
Property taxes are administered by the counties: Honolulu, Hawaii, Maui and Kauai.
Exemptions are allowed for owner-occupied homes, with multiple exemptions based on age. Specific exemption amounts may vary by county. Check the Web site links above for jurisdiction details.
Inheritance and estate taxes
 There is no inheritance tax and limited Hawaii estate tax related to federal estate tax collection.
Other Hawaii tax facts
Make sure you've got a minister pronouncing you husband and wife. If the state determines your ceremony is a non-religious " tourist wedding," you'll have to pay the state's 4 percent excise tax.
For more information, go to the state's Web site.
To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.
  

-- Updated: Feb. 4, 2008

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