About Hawaii State Income Tax

Hawaii uses a progressive tax system with twelve tax brackets. The state has one of the highest top tax rates in the nation at 11%, reflecting the high cost of living in Hawaii and the state's reliance on income tax revenue.

Hawaii Tax Brackets 2026

Single Filers

• $0 - $5,200: 1.4%
• $5,201 - $13,000: 3.2%
• $13,001 - $20,000: 5.5%
• $20,001 - $26,000: 6.4%
• $26,001 - $32,000: 7.2%
• $32,001 - $38,000: 8.0%
• $38,001 - $46,000: 8.4%
• $46,001 - $55,000: 8.8%
• $55,001 - $65,000: 9.2%
• $65,001 - $75,000: 9.8%
• $75,001 - $80,000: 10.5%
• Over $80,000: 11.0%

How Hawaii Tax is Calculated

Hawaii's progressive tax system with 12 brackets works as follows:

1. Income is divided into 12 tax brackets
2. Each portion of income is taxed at its corresponding bracket rate
3. Higher earners pay the top rate of 11% on income over $80,000
4. Personal exemptions reduce taxable income

Hawaii Tax Features

• High Top Rate: 11% is one of the highest state rates in the nation
• 12 Brackets: More gradual rate increases than most states
• High Cost of Living: Partially offset by exemptions and deductions
• Military Considerations: Special tax treatment for military personnel
• Dependent Exemptions: Generous exemptions for dependents

Frequently Asked Questions

What is Hawaii's income tax rate?

Hawaii has progressive tax rates from 1.4% to 11% across 12 brackets. The top rate of 11% applies to income over $80,000 for single filers, making Hawaii one of the highest-taxing states in the nation.

Why is Hawaii's tax rate so high?

Hawaii relies heavily on income tax revenue and has one of the highest costs of living in the United States. The state uses tax revenue for education, infrastructure, and social services specific to the island economy.

Does Hawaii offer any tax deductions?

Yes, Hawaii offers dependent exemptions that reduce taxable income. Hawaii also allows various standard deductions and personal exemptions that vary based on filing status and age.

How does Hawaii compare to other states?

Hawaii (11% top rate) is among the highest-taxing states, comparable to California (13.3%), Oregon (9.9%), and New York (10.9%). However, neighboring Pacific states like Alaska have no income tax.

Hawaii vs. Neighboring States

Tax comparison with other states:

• Alaska: No state income tax
• Washington: No state income tax (capital gains tax only)
• California: Progressive up to 13.3%
• Oregon: Progressive up to 9.9%

Tips for Hawaii Taxpayers

• Plan for the top 11% rate if you have higher income
• Maximize dependent exemptions to reduce taxable income
• Consider Hawaii's high cost of living in financial planning
• Track all eligible deductions to lower your tax burden
• Military personnel should verify special tax treatment eligibility