Taxes in Hawaii

Hawaii Tax Rates, Collections, and Burdens

How does Hawaii’s tax code compare? Hawaii has a graduated individual income tax, with rates ranging from 1.40 percent to 11.00 percent. Hawaii also has a 4.40 to 6.40 percent corporate income tax rate. Hawaii has a 4.00 percent state sales tax rate, a 0.50 percent max local sales tax rate, and an average combined state and local sales tax rate of 4.44 percent. Hawaii’s tax system ranks 43st overall on our 2023 State Business Tax Climate Index.

Each state’s tax code is a multifaceted system with many moving parts, and Hawaii is no exception. The first step towards understanding Hawaii’s tax code is knowing the basics. How does Hawaii collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?

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