- 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
Income tax comments: *Any portion of retirement income that is employee-funded is taxed.
- 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.
- 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