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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Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).
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As a rule, an individual’s income can be taxed both by the state in which the taxpayer resides and by the state in which the taxpayer’s income is earned.
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Forty-four states levy corporate income tax. Top rates range from a 2.25 percent flat rate in North Carolina to a 11.5 percent top marginal rate in New Jersey.
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Recent data suggest that tax competitiveness plays a significant role in residents’ relocation decisions.
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Over 500 million premium cigars were sold in the United States in 2023. With each sale comes a complex tax landscape.
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