State Income Tax

Income Tax in Hawaii: Complete Guide 2026

Updated 2026-03-11

Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.

Income Tax in Hawaii: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

Hawaii imposes one of the highest state income tax rates in the nation, with a top marginal rate of approximately ~11% on taxable income exceeding ~$200,000 for single filers. The state uses a highly graduated system with twelve brackets, creating a steep curve that results in comparatively high effective rates for upper-income earners. Despite the elevated income tax, Hawaii has no local income taxes, and the state’s general excise tax (GET) functions differently from a traditional sales tax. Residents must understand both systems to accurately assess their total state tax burden.

Hawaii Income Tax Rates (2026)

Single Filers

Taxable Income BracketMarginal Rate
$0 to ~$2,400~1.40%
~$2,401 to ~$4,800~3.20%
~$4,801 to ~$9,600~5.50%
~$9,601 to ~$14,400~6.40%
~$14,401 to ~$19,200~6.80%
~$19,201 to ~$24,000~7.20%
~$24,001 to ~$36,000~7.60%
~$36,001 to ~$48,000~7.90%
~$48,001 to ~$150,000~8.25%
~$150,001 to ~$175,000~9.00%
~$175,001 to ~$200,000~10.00%
Over ~$200,000~11.00%

Married-filing-jointly brackets are approximately double the single filer amounts.

How Hawaii Income Tax Works

Twelve-Bracket Structure

Hawaii’s twelve brackets create one of the most graduated systems in the country. The progression from ~1.40% to ~11.00% means that filers at different income levels experience substantially different effective rates. A single filer earning ~$75,000 would face an estimated effective rate of approximately ~7.1%, while someone earning ~$300,000 would approach an effective rate near ~9.5%.

Standard Deduction and Exemptions

  • Standard deduction: ~$2,200 for single filers; ~$4,400 for married filing jointly
  • Personal exemption: ~$1,144 per taxpayer, spouse, and dependent
  • Itemized deductions: Hawaii allows itemized deductions but does not conform to the federal SALT deduction cap; however, the state has its own limitations on certain deductions

Key Exclusions

  • Social Security: Not taxed by Hawaii
  • Pension income: Generally taxable, though certain public employee pension distributions from the Hawaii Employees’ Retirement System may qualify for partial exclusion
  • Military pay: Active-duty military pay for nonresident service members is exempt; resident military members are taxed on all income

Tax Credits

  1. Low-income household renter’s credit: Up to ~$50 per exemption for renters with AGI below ~$30,000
  2. Food/excise tax credit: ~$110 per exemption for filers under certain income thresholds, offsetting the regressive nature of the GET
  3. Child and dependent care credit: A percentage of the federal credit
  4. Technology and renewable energy credits: Various credits for qualifying investments
  5. Refundable food/excise credit: Available to lower-income filers to offset GET burden

Who Must File in Hawaii

You must file a Hawaii income tax return if:

  • You are a resident with gross income above the filing threshold (~$3,344 for single filers under 65)
  • You are a part-year resident or nonresident with Hawaii-source income
  • You want to claim a refund of Hawaii taxes withheld

Hawaii uses Form N-11 for residents and Form N-15 for nonresidents and part-year residents. The filing deadline is April 20.

Comparison to National Average

StateTop Income Tax RateStructure
Hawaii~11.00%Graduated (12 brackets)
California~13.30%Graduated
Oregon~9.90%Graduated
Washington~0%No income tax
National average~4.60%Varies

Hawaii’s top rate of ~11.00% is the second or third highest in the nation depending on how local surcharges are counted in other states. The high rate is partially offset by no local income taxes, relatively low property taxes, and the food/excise tax credit.

Tips for Minimizing Hawaii Income Tax

  1. Claim the food/excise tax credit. This credit offsets the regressive burden of the GET and is available even if you owe no income tax, making it refundable for qualifying filers.

  2. Maximize retirement account contributions. Contributions to 401(k), 403(b), and traditional IRA accounts reduce your federal AGI, which flows through to your Hawaii taxable income.

  3. Consider Roth conversions carefully. With a top rate of ~11.00%, converting traditional retirement accounts to Roth accounts triggers a significant state tax cost. Model the conversion amount to stay within lower brackets.

  4. Use the renter’s credit if eligible. Low-income renters can claim up to ~$50 per exemption, a small but often overlooked benefit.

  5. Explore renewable energy credits. Hawaii offers generous credits for solar, wind, and other renewable energy installations that can directly reduce your tax liability.

  6. Time capital gains recognition. Long-term capital gains are taxed as ordinary income in Hawaii, so large gains can push you into the ~11.00% bracket. Spreading gains across multiple tax years may reduce the overall rate.

  7. File by April 20. Hawaii’s filing deadline is five days after the federal deadline. Missing it triggers penalties and interest.

Key Takeaways

  • Hawaii has one of the highest state income tax rates at ~11.00% on income above ~$200,000 for single filers
  • The twelve-bracket system creates a highly graduated structure with rates starting at ~1.40%
  • Social Security is exempt, but most pension and retirement income is fully taxable
  • The food/excise tax credit helps offset the regressive general excise tax for lower-income residents
  • Capital gains are taxed as ordinary income, making large gains especially costly in Hawaii
  • No local income taxes are imposed, and the filing deadline is April 20

Next Steps