Hawaii vs Federal Tax Comparison
| Tax Type | HI State Rate | Federal Rate | Notes |
|---|---|---|---|
| Personal Income Tax | 1.4–11% | Federal: 10–37% | Combined fed+state applies |
| Corporate Income Tax | 4.4% | Federal: 21% | 4.4–6.4% graduated; GET replaces sales tax |
| State Sales Tax | 4% | No federal sales tax | Combined avg: 4.44% |
| Capital Gains Tax | 7.25% | Federal: 0–20% | Special rate may apply |
About Hawaii Taxes
Second-highest income tax; 4% General Excise Tax (GET) instead of sales tax.
Hawaii levies income tax at rates from 1.4–11%. The progressive bracket system means higher earners pay a larger percentage on income above each threshold.
Corporate activity in Hawaii faces a 4.4% state corporate tax rate. 4.4–6.4% graduated; GET replaces sales tax. Combined with the 21% federal corporate rate, businesses should plan accordingly.
Calculate Your Net Salary in Hawaii
See federal + HI state tax deductions, Social Security, Medicare, and take-home pay
Open US Salary CalculatorFrequently Asked Questions — Hawaii Taxes
What are Hawaii's income tax brackets for 2026?
Hawaii has a progressive income tax ranging from 1.4–11%. The top rate of 11.0% applies to the highest income bracket. Filers should check the current threshold amounts on the Hawaii Department of Revenue website.
What is the corporate income tax rate in Hawaii?
Hawaii imposes a corporate income tax at 4.4%. 4.4–6.4% graduated; GET replaces sales tax. Businesses should also account for federal corporate tax at 21% on top of the state rate.
What is the sales tax rate in Hawaii?
Hawaii has a state sales tax of 4%. When local city and county taxes are included, the average combined rate reaches 4.44%. Rates vary by locality so check the specific municipality for accurate figures.
How does Hawaii compare to neighboring states for taxes?
Hawaii's overall tax burden ranks near average among US states. The state levies income tax at up to 11%. For individuals evaluating relocation or remote work, comparing the full picture — income, sales, and property taxes — is essential. Use our US Salary Calculator to estimate your net income in Hawaii.
Are there any special tax incentives or exemptions in Hawaii?
Hawaii offers notable tax characteristics: Second-highest income tax; 4% General Excise Tax (GET) instead of sales tax. Businesses and individuals should consult a qualified tax advisor to understand eligibility for available credits, deductions, and incentives specific to Hawaii.
Cost of Living in Hawaii
Tax rates are only part of the picture — explore city-level cost of living data:
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