Gary Hufbauer is the Reginald Jones Senior Fellow at the Peterson Institute for International Economics.
A seminal thinker and world-renowned expert on international trade, commerce, and taxation, for the past...
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 state and local income tax collections per person were $1114 in 2012 which ranked 15th 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 21st lowest among states levying a corporate income tax. Hawaii's state and local corporate income tax collections per person were $58 in 2012 which ranked 7th 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 $2088 per person in general sales taxes and $785 per person in excise taxes, for a combined figure of $2873, which ranks highest nationally. Hawaii's gasoline tax stands at 45¢ (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 $947 per person in property taxes in 2012, which ranks 14th lowest nationally.
State and local property tax collections per capita by state
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 24th (ranked 9th latest nationally); Oregon, April 20th (ranked 16th latest nationally); and California, April 30th (ranked 4th latest nationally).
Hawaii's 2011 tax burden of 9.6% 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 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, 11th, Oregon, 12th, and California, 48th.
State Business Tax Climate Index (full study)
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