Sales Tax*
Statewide: 4.0%
Local governments can levy an additional sales tax of no more than 0.5%.
Current average sales tax (with local taxes included): 4.5%
Common Exceptions at State Level:
Prescription Medicine: Exempt
Gasoline Tax: 36.90 cents/gallon (Includes all state and federal taxes; local tax varies by island)
Diesel Fuel Tax: 42.90 cents/gallon (Includes all state and federal taxes; local tax varies by island)
* 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 $325,000 (Calculate your tax rate )
Standard deduction: Single filing status: $8,000.
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. $8,082 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.
*Any portion of retirement income that is employee-funded is taxed.Property Tax
Local municipalities average .27% of the property's assessed value
Calculation of assessed value: Varies by island.
Homestead exemption: Relief programs vary by island.
Disabled Veterans/Surviving Spouses: Relief programs vary by island.
Blind or Deaf, Totally Disabled, or Hansen's Disease: $25,000 reduction in assessed value if meet value requirements.
Personal Property Tax: Yes. Rates and exemptions vary.
Inheritance & Estate Taxes: Estates over $5.49 million are subject to a tax between 10% and 20%.
Department of Revenue Website: https://tax.hawaii.gov
