Hawaii has a graduated state individual income tax, with rates ranging from 1.40 percent to 11.00 percent. Hawaii has a graduated corporate income tax, with rates ranging from 4.4 percent to 6.4 percent, a 4.00 percent state sales tax rate, and an average combined state and local sales tax rate of 4.50 percent. Hawaii has a 0.29 percent effective property tax rate on owner-occupied housing value. Hawaii does not have an estate tax or inheritance tax. Hawaii’s statewide gas tax is 18.75 cents per gallon, but every county also levies its own local option gas tax. Hawaii’s cigarette excise tax is $3.60 per pack of 20 cigarettes.
Hawaii raises tax revenue primarily through general sales taxes (37.5 percent of total state and local tax revenue), individual income taxes (22.0 percent), and other taxes (20.0 percent). Hawaii collects $9,758 in state and local tax collections per capita, carries $14,149 in state and local debt per capita, and has a 63 percent funded ratio of public pension plans. Hawaii’s tax system ranks 41st overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Hawaii is no exception. Use the tabs below to compare Hawaii taxes with other states and to see how Hawaii raises tax revenue. You can also browse our tax maps, which are compiled from our annual publication, Facts & Figures 2026: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
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Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
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Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
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Forty-four states levy a corporate income tax, with top rates ranging from a 2 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey. Four states—Georgia, Nebraska, North Carolina, and Pennsylvania—reduced their corporate income tax rates effective January 1, 2026.
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It is important to understand how the SALT deduction’s benefits have changed since the SALT cap was put into place in 2018 before repealing the cap or making the deduction more generous. Doing so would disproportionately benefit higher earners, making the tax code more regressive.
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Although most states are on solid financial footing following the coronavirus crisis, pension liabilities are a deep-seated problem that long predates the pandemic.
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State taxation of GILTI is unconventional and economically uncompetitive and will become even more so if the federal government adopts a more aggressive approach to taxing GILTI, as outlined in the American Jobs Plan Act.
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