Hawaii

Sales Tax

  • Statewide: 4.0%
  • Counties can levy an additional sales tax of no more than 0.5%.
  • Current average sales tax (with local taxes included): 4.427%
  • Gasoline Tax: 68.57 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 75.21 cents/gallon (Includes all state, local, and federal taxes)
  • Cigarette Tax: $3.20/pack of 20
  • Hawaii imposes an excise tax on business in lieu of a sales tax on customers, but the tax is often passed on to the customer.

 

Personal Income Tax

  • Personal Income Tax Rate Range: Twelve brackets from 1.4% to 11.0% on income more than $200,000
  • Standard deduction: Single filing status: $2,200. Married Filing Jointly: $4,400
  • Personal Exemption Allowance: $1,144. Dependent Exemption: $1,144
  • Itemized Deductions Allowed?: Yes, subject to limitations.
  • Retirement Income
    • Social Security: Exempt
    • IRAs: May be fully or partially taxable*
    • 401Ks/Defined contribution employer retirement plans: May be fully or partially taxable* 
    • Private pensions: May be fully or partially taxable* 
    • Public Pensions: Exempt
  • Military Pay
    • Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income, except $6,943 of pay for Army Reserve and Hawaii National Guard is exempt.
    • Military Retirement Pay: Exempt*
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Exempt.
Income tax comments: *Any portion of retirement income that is employee-funded is taxed.

 

Property Tax

  • Local municipalities average .28% of the property's assessed value
  • Calculation of assessed value: 100% of fair market value
  • Homestead exemption: Reduction in assessed value of $60,000 if under 60, $80,000 between age 60 and 69, $100,000 if over 70. An additional exemption of 20% of assessed value is also available.
  • Other relief programs vary by island.
  • Personal Property Tax: Yes. Rates and exemptions vary.

 

Inheritance & Estate Taxes: Estates over $5.49 million are subject to a maximum tax of 20%.

 

Department of Revenue website: www.tax.hawaii.gov

More Financial Guidance From MOAA 

Premium and Life members can consult our financial staff for education and consumer advice.

 

Looking to get more out of your membership? MOAA has more than 400 chapters around the country. Get involved in your community by finding the one closest to you and joining today!