Data Notice: The Hawaii tax information in this article reflects projected 2026 rates and thresholds. State tax law is subject to legislative revision. Confirm current rates with Hawaii’s official tax authority before making filing decisions. [taxes-hawaii-2026]

Taxes in Hawaii: State Tax Guide 2026

Tax information in this article on taxes in hawaii: state tax guide 2026 is for educational purposes only and does not constitute tax, legal, or financial advice. Tax laws change, and individual circumstances vary. Consult a qualified tax professional or CPA for guidance specific to your situation.

Hawaii has one of the highest overall tax burdens in the nation, featuring a steeply progressive income tax with a top rate of 11.00% and a broad-based General Excise Tax (GET) that functions like a sales tax. Combined with the extremely high cost of living, Hawaii’s tax landscape demands careful planning for residents and prospective movers.

Hawaii Income Tax Rates (2026)

Hawaii uses a progressive income tax system with twelve brackets. Rates below are for single filers:

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

Married filing jointly thresholds are approximately double these amounts.

Hawaii Standard Deduction (2026)

Filing Status	Amount
Single	~$2,200
Married Filing Jointly	~$4,400
Head of Household	~$3,212

Hawaii’s standard deduction is substantially lower than the federal amount, which means a larger portion of income is subject to state tax.

Notable Hawaii Tax Credits

Low-Income Household Renters Credit: Up to ~$50 for qualifying renters with AGI under ~$30,000
Food/Excise Tax Credit: ~$110 per exemption to offset the regressive nature of the GET
Child and Dependent Care Credit: Based on qualifying expenses
Renewable Energy Technologies Credit: Up to 35% of the cost of installing solar or wind energy systems (among the most generous in the nation)
Capital Goods Excise Tax Credit: 4% credit for qualifying business equipment purchases

Sales Tax (General Excise Tax)

Component	Rate
State General Excise Tax (GET)	4.00%
Oahu surcharge	0.50%
Effective combined rate (Oahu)	4.50%
Other islands	4.00%

Hawaii does not technically have a “sales tax,” but the General Excise Tax (GET) functions similarly. A critical difference: the GET is levied on businesses for the privilege of doing business, and most businesses pass the cost to consumers. Unlike a traditional sales tax, the GET applies to virtually all goods and services, including groceries, medical services, and rent — making it one of the broadest consumption taxes in the country.

Note: Because the GET is technically a business tax, businesses often add a ~4.166% or ~4.712% charge (on Oahu) to invoices to cover the tax-on-tax effect.

Property Tax

Metric	Amount
Average effective rate	~0.32%
National average	0.99%

Hawaii has the lowest effective property tax rate in the nation. However, because home values are extremely high (median home price over ~$800,000), the absolute dollar amount can still be substantial.

Exemptions

Homeowner exemption: ~$100,000 off assessed value for owner-occupied residences (varies by county)
Home Preservation Limit: Caps annual assessment increases at a fixed percentage for owner-occupied homes
Senior exemptions: Additional exemptions for homeowners 60–69 (~~$140,000) and 70+ (~~$150,000) in Honolulu County

Example: A home valued at $900,000 in Honolulu with a $100,000 homeowner exemption and a residential rate of ~0.35% pays approximately ~$2,800/year — low relative to the home’s value but still meaningful.

How Hawaii Compares to National Averages

Tax Type	Hawaii	National Average
Top income tax rate	11.00%	~5.0%
Effective rate (~$75K single)	~7.0%	~3.5%
GET (combined avg, Oahu)	4.50%	6.6% (sales tax)
Property tax (effective)	~0.32%	0.99%
Overall tax burden rank	Top 5 highest	—

Who Benefits from Living in Hawaii

Hawaii may work well for:

Homeowners — Extremely low property tax rates, especially with the homeowner exemption
Solar energy adopters — Among the most generous renewable energy tax credits in the nation (35%)
Retirees with moderate income — Social Security is tax-free and pensions from government plans are partially exempt
Long-term residents on fixed budgets — Home Preservation Limit caps protect against assessment spikes

Hawaii may be costly for:

High earners — The 11.00% top rate (third highest in the nation) kicks in at ~$200,000 for single filers
Renters — The GET applies to rent, adding ~4% to housing costs on top of already sky-high rents
Consumers — The GET applies to groceries, medical services, and nearly all other purchases
Middle-income earners — Rates reach 8.25% at just ~$48,000 of taxable income
Business owners — The GET is levied on gross revenue, not profit, which can be especially burdensome for low-margin businesses

Hawaii-Specific Considerations

No tax on Social Security benefits — Hawaii fully exempts Social Security income
Pension exclusion — Distributions from employer-funded pension plans may be partially excluded
Capital gains taxed as ordinary income — No preferential state rate for long-term capital gains
No state estate tax (as of 2023 repeal) — Hawaii repealed its estate tax effective for decedents dying after January 1, 2023
General Excise Tax breadth — GET applies to services that most states do not tax, including medical services, rent, and financial services
Cost of living amplifier — Hawaii’s cost of living is roughly 90% above the national average, which compounds the impact of consumption taxes

Key Takeaways

Hawaii has the third-highest top income tax rate in the nation at 11.00%
The General Excise Tax applies to nearly all goods and services, including groceries and rent
Property taxes are the lowest in the nation by effective rate, though high home values mean significant absolute amounts
The standard deduction is very low, increasing taxable income for most filers
Generous renewable energy credits (35%) can offset some of the tax burden
No state tax on Social Security benefits, and Hawaii has repealed its estate tax

Next Steps

See how Hawaii compares at State Income Tax Comparison: All 50 States Ranked
Calculate your federal bracket with the Tax Bracket Calculator 2026
Explore deductions available to you — Tax Deductions You’re Probably Missing (Itemized vs Standard)
Find a Hawaii CPA — Find a CPA Near You
Consider tax-efficient strategies — Tax Planning Consultation