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 41st overall on our 2022 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?

 

Top Individual Income Tax Rate

11%

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State and Local Individual Income Tax Collections per Capita

$1711

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State and Local Tax Burden

14.1%

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Top Corporate Income Tax Rate

6.4%

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State Business Tax Climate Index Ranking

41

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State Sales Tax Rate

4.00%

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Average Local Sales Tax Rate

.44%

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Combined State and Average Local Sales Tax Rate

4.44%

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State and Local General Sales Tax Collections per Capita

$2888

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State Gasoline Tax Rate (cents per gallon)

51.69¢

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State Cigarette Tax Rate (dollars per 20-pack)

$3.2

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Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

0.31%

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State and Local Property Tax Collections Per Capita

$1455

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