Many people are beginning to wrap their minds around the House Republicans’ proposed destination-based cash-flow tax and what it means for tax reform. Most people are still looking into the tax’s impacts on trade and how...
The facts on Hawaii’s Tax Climate
8.25%individual income taxTop rate
6.4%corporate income taxTop rate
4%sales taxGeneral Excise Tax
$943property taxcollections per capita
Hawaii's Individual Income Tax System
Hawaii's individual income tax system consists of nine brackets with a top rate of 8.25%. The top rate ranks 8th highest among states levying an individual income tax. Hawaii's state and local tax collections per person were $1,232 in 2013, which ranked 14th highest nationally.
Hawaii's Corporate Income Tax System
Hawaii's corporate income tax system consists of three brackets with a top rate of 6.4%. The top rate ranks 30th highest among states levying a corporate income tax. Hawaii's state and local corporate income tax collections per person were $88 in 2013 which ranked 39th highest nationally.
Hawaii Sales and Excise Taxes
Hawaii levies a 4% General Excise Tax, a tax similar to sales tax in other states but much broader in its application. The average local sales tax rate is an additional 0.4%. Hawaii's state and local governments collect $2,214 per person in general sales taxes and $868 per person in excise taxes, for a combined figure of $3,082, which ranks 1st highest nationally. Hawaii's gasoline tax stands at 42.35 cents per gallon, 4th highest nationally, while its cigarette tax stands at $3.20, 5th highest nationally.
Hawaii Property Tax Collections Relatively Low
Hawaii's state and local governments collected approximately $943 per person in property taxes in 2013, which ranks 38th nationally.
Tax Freedom Day Arrives on April 19th in Hawaii
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Hawaii taxpayers have to work until April 19th (26th earliest nationally) to pay their total tax bill.
Hawaii's State and Local Tax Burden Ranks 14th
Hawaii's 2012 tax burden of 10.2% ranks 14th highest in the nation, and is above the national average of 9.9%. Hawaii's taxpayers pay $4,576 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 2016 Business Tax Climate Index Ranks 31st
Hawaii ranks 31st on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (10th), individual income taxes (37th), sales taxes (14th), unemployment insurance taxes (24th), and taxes on property (14th), including residential and commercial property.
State Business Tax Climate Index (full study)
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