Today, the Tax Foundation is honoring six individuals with the second annual award for Outstanding Achievement in State Tax Reform. As the award’s name suggests, the honorees were selected due to their extraordinary...
The facts on Hawaii’s Tax Climate
11%individual income taxTop rate
6.4%corporate income taxTop rate
$966property taxcollections per capita
Hawaii's Individual Income Tax System
Hawaii's personal income tax system consists of twelve brackets and a top rate of 11%. That rate ranks 2nd highest among states levying an individual income tax. Hawaii's state and local income tax collections per person were $910 in 2011 which ranked 22nd highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Hawaii's Corporate Income Tax System
Hawaii's corporate income tax system consists of three brackets and a top rate of 6.4%. That rate ranks 20th lowest among states levying a corporate income tax. Hawaii's state and local corporate income tax collections per person were $49 in 2011 which ranked 9th lowest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Hawaii Sales and Excise Taxes
Hawaii levies a 4% general sales or use tax on consumers, which is below the national median of 5.95%. The average local sales tax rate is an additional 0.35%. Hawaii's state and local governments collect $1820 per person in general sales taxes and $756 per person in excise taxes, for a combined figure of $2576, which ranks 6th lowest nationally. Hawaii's gasoline tax stands at 49.1¢ (4th highest nationally), while its cigarette tax stands at $3.2 (5th highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Hawaii Property Tax Collections Relatively Low
Hawaii's state and local governments collected approximately $966 per person in property taxes, which ranks 14th lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 15th in Hawaii
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, Hawaii taxpayers worked until April 15th (25th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Washington, April 25th (ranked 9th latest nationally); Oregon, April 20th (ranked 16th latest nationally); and California, April 30th (ranked 4th latest nationally).
Hawaii's State and Local Tax Burden In Line with National Average
Hawaii's 2011 tax burden of 9.62% ranks 20th highest out of 50 states, and is below the national average of 9.8%. Hawaii's taxpayers pay $4259 per capita in state and local taxes.
Hawaii's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Hawaii's 2014 Business Tax Climate Index Ranks 30
Hawaii ranks 30th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Washington, 6th, Oregon, 12th, and California, 48th.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)
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