Hawaii State Tax

Hawaii State Tax

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Hawaii State Tax

There are a number of taxes applicable to the state of Hawaii, which includes a state sales tax, income tax, and other taxes.

Hawaii state sales tax – Hawaii does not have a sales tax at the point of sale, but rather has an excise tax, paid by sellers, which are passed on to consumers in the price of goods.  This tax applies to almost all transactions, including rent, medical services, and food.  Contact Hawaii lawyers for legal advice and assistance.

Hawaii personal income tax 

Hawaii uses a graduated tax system, where income which is as follows:

Income range between $0 and $2,400          1.4%.

Income range between $2,401 and $4,800      3.2%.

Income range between $4,801 and $9,600      5.5%.

Income range between $9,601 and $14,400     6.4%

Income range between $14,401 and $19,200    6.8%.

Income range between $19,201 and $24,000    7.2%.

Income range between $24,001 and $36,000    7.6%.

Income range between $36,001 and $48,000    7.9%.

Income range $48,001 and over   8.25%.

Hawaii property taxes

- Fund local governments but approved by state

-Property tax rates vary depending on the island the property is on and the type of property. 

-The rate can range anywhere between 3.42% for residential property to 12.40% for commercial and hotel properties.  

Hawaii special excise taxes

Taxes assessed on vehicles, alcohol, tobacco, gasoline and are in addition to federal excise taxes. 

- Funds health programs and other related activities

- $3.00 tax on every pack of cigarettes

- $5.98 tax per gallon of liquor

Hawaii inheritance tax 

Hawaii has just instituted a new inheritance tax, which went into effect on April 30, 2010.  The inheritance tax only affects estates with a value of over $3.6 Million.  Any amounts over $3.6 Million is taxed at a graduated rate, which begins at .8% and can be as high as 16% for estates over $10.1 Million.   

Hawaii payroll taxes

State Disability Insurance – .50% withheld with a maximum of $4.42

State Unemployment Insurance – 1.22% - 5.42%

Exemptions

Certain exemptions for

- Military personnel and veterans

- Persons age 65 and older

- Low income tax credits

- Qualified child tax credits

Taxable income

Gross income is defined as all income from whatever source derived, including but not limited to:

- Wages

- Salaries

- Commissions

- Stock Gains

- Dividends

- Royalties income

- Rental income

- Business income

- Inheritance

- Pensions

- Annuities

- Partnership/shareholder income

- Gain from sale of property

Corporate income tax

Hawaii has different levels of corporate income tax rates ranging from 4.4% to 6.4%

Misc

Hawaii has the highest income tax rates in the nation, with the highest pay rates paying 11% for income over $200,000. 

Hawaii is one of the very few states that does not have a point of sale tax, but instead has a gross receipts tax, which taxes everything before reaching the consumer.  Many claim that this form of taxation makes for a much higher actual tax rate, as items may be taxed multiple times through the stream of commerce.  All items may be subject to the gross receipt tax, even necessities such as medical services and housing.  

 

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