Hawaii

 
 

The facts on Hawaii’s Tax Climate

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 income tax collections per person were $1127 in 2010 which ranked 10th 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 19th lowest among states levying an corporate income tax. Hawaii's corporate tax collections per person were $59 in 2010 which ranked 10th 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 6%. The average local sales tax rate is an additional 0.35%. Hawaii's state and local governments collect $1710 per person in general sales taxes and $684 per person in excise taxes, for a combined figure of $2394, which ranks 2nd highest nationally. Hawaii's gasoline tax stands at 47.1¢ (3rd highest nationally), while its cigarette tax stands at $3.2 (4th 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 $1028 per person in property taxes, which ranks 17th lowest nationally.
State and local property tax collections per capita by state

Tax Freedom Day Arrives on April 14th 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 2013, Hawaii taxpayers worked until April 14th (24th latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Washington, April 20th (ranked 9th latest nationally); Oregon, April 15th (ranked 18th latest nationally); and California, April 24th (ranked 6th latest nationally).

Full study of Tax Freedom Day, nationwide and in each state

Hawaii's State and Local Tax Burden In Line with National Average

Hawaii's 2010 tax burden of 10.1% ranks 14th highest out of 50 states, and is above the national average of 9.9%. Hawaii's taxpayers pay $4396 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 2013 Business Tax Climate Index Ranks 37

Hawaii ranks 37th 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, 13th, and California, 48th.
50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)

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