Hawaii has progressive income tax rates from 1.4% to 11% — one of the highest top rates in the nation, but with generous retirement exemptions.
Hawaii Income Tax Rates for 2026
Single Filers
| Taxable Income | Tax Rate |
|---|---|
| $0 - $2,400 | 1.4% |
| $2,400 - $4,800 | 3.2% |
| $4,800 - $9,600 | 5.5% |
| $9,600 - $14,400 | 6.4% |
| $14,400 - $19,200 | 6.8% |
| $19,200 - $24,000 | 7.2% |
| $24,000 - $36,000 | 7.6% |
| $36,000 - $48,000 | 7.9% |
| $48,000 - $150,000 | 8.25% |
| $150,000 - $175,000 | 9.0% |
| $175,000 - $200,000 | 10.0% |
| Over $200,000 | 11.0% |
Married Filing Jointly
| Taxable Income | Tax Rate |
|---|---|
| $0 - $4,800 | 1.4% |
| $4,800 - $9,600 | 3.2% |
| $9,600 - $19,200 | 5.5% |
| $19,200 - $28,800 | 6.4% |
| $28,800 - $38,400 | 6.8% |
| $38,400 - $48,000 | 7.2% |
| $48,000 - $72,000 | 7.6% |
| $72,000 - $96,000 | 7.9% |
| $96,000 - $300,000 | 8.25% |
| $300,000 - $350,000 | 9.0% |
| $350,000 - $400,000 | 10.0% |
| Over $400,000 | 11.0% |
Note: Hawaii has 12 tax brackets — most of any state.
Hawaii Tax Calculator Examples
Example 1: $100,000 Single Filer
| Component | Calculation |
|---|---|
| Tax on brackets up to $48,000 | ~$2,900 |
| Tax on $48,000-$100,000 (8.25%) | $4,290 |
| Total Hawaii tax | ~$7,190 |
| Effective rate | ~7.19% |
Example 2: $200,000 Married Filing Jointly
| Component | Calculation |
|---|---|
| Tax on brackets up to $96,000 | ~$5,500 |
| Tax on $96,000-$200,000 (8.25%) | $8,580 |
| Total Hawaii tax | ~$14,080 |
| Effective rate | ~7.04% |
Hawaii Standard Deduction (2026)
| Filing Status | Standard Deduction |
|---|---|
| Single | $2,200 |
| Married Filing Jointly | $4,400 |
| Married Filing Separately | $2,200 |
| Head of Household | $3,212 |
Hawaii’s standard deduction is much smaller than federal.
Hawaii Retirement Income
Pension Income
Hawaii exempts most pension income:
| Pension Type | Tax Treatment |
|---|---|
| Private employer pensions | Exempt (distributions from employer plans) |
| Government pensions | Exempt |
| Military retirement | Exempt |
Social Security
Fully exempt — Hawaii does not tax Social Security benefits.
401(k) and IRA
| Account Type | Tax Treatment |
|---|---|
| Traditional 401(k) withdrawals | Generally taxed |
| Traditional IRA withdrawals | Generally taxed |
| Roth withdrawals | Exempt (if qualified) |
Note: Hawaii pension exemption rules are complex — consult HI Dept. of Taxation.
What Income is Taxed in Hawaii?
Taxed:
- Wages and salaries
- Self-employment income
- Interest and dividends
- Capital gains (taxed as ordinary income, up to 7.25%)
- 401(k)/IRA withdrawals (generally)
- Rental income
Not taxed or exempt:
- Social Security — Fully exempt
- Most pension income
- Military retirement
- Hawaii state/municipal bond interest
Hawaii vs. Other States
| State | Top Income Tax Rate |
|---|---|
| California | 13.3% |
| Hawaii | 11.0% |
| New Jersey | 10.75% |
| Oregon | 9.9% |
| Minnesota | 9.85% |
| New York | 10.9% |
| Washington | 0% |
| Texas | 0% |
Hawaii has one of the highest top rates nationally.
Hawaii General Excise Tax (GET)
Instead of traditional sales tax, Hawaii has GET:
| Rate | Application |
|---|---|
| 4.0% | Most goods and services |
| 4.5% | Oahu (additional 0.5% surcharge) |
| 0.5% | Wholesaling |
GET is applied at each level of transaction, making effective rates higher than stated.
Hawaiian Filing Requirements
| Filing Requirement | Details |
|---|---|
| Form | N-11 (residents), N-15 (part-year/nonresidents) |
| Due date | April 20 |
| E-file | Yes, through Hawaii Tax Online |
| Extension | 6 months if requested |
Note: Hawaii due date is April 20, not April 15.
Hawaii Property Tax
- Average effective rate: ~0.32% (lowest in nation)
- Homeowner exemption available (reduces assessed value)
- Rates vary by county (Honolulu, Maui, Hawaii, Kauai)
Low property tax helps offset high income tax.
Hawaii Cost of Living
| Expense | vs. US Average |
|---|---|
| Overall | +88% higher |
| Housing | +170% higher |
| Groceries | +50% higher |
| Utilities | +70% higher |
| Transportation | +35% higher |
Hawaii’s tax burden is compounded by extremely high cost of living.
Tips to Reduce Hawaii Taxes
- Maximize pension income — Often exempt
- Roth conversions before retirement — Avoid taxable withdrawals
- Claim all exemptions — Personal exemptions still exist in HI
- Consider Roth accounts — Qualified withdrawals tax-free
- Work with HI tax professional — Complex rules
Hawaii Tax Authority
Hawaii Department of Taxation
- Website: tax.hawaii.gov
- Phone: 808-587-4242
- For refunds, returns, and questions
Bottom Line
Hawaii has progressive income tax rates from 1.4% to 11% — among the highest top rates nationally. However, Social Security and most pensions are exempt, making it reasonably tax-friendly for retirees with pension income. Property taxes are the lowest in the nation (0.32%). The GET sales tax (4-4.5%) and extremely high cost of living (+88% above average) mean overall expenses are very high despite some tax advantages.
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