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. 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?

Lunch Links: States React to Internet Sales Tax Proposal Unveiled by House Judiciary Chairman; Income Tax Off Ballot in Olympia, WA; $1B Hawaii Surplus Up for Grabs

August 26, 2016

Lunch Links: Republican Plan Upcoming for Sales Tax on Internet Buys; Walmart Avoids Excessive Tax Proposed by Puerto Rico; Explaining Why States Should Index Tax Brackets for Inflation

August 25, 2016

Lunch Links: IRS Punishes Whistleblower; Hawaii to Evaluate Tax Credits; Greece Using Cash-Sniffing Dogs

July 20, 2016

Lunch Links: Google Responds to Europe; Hawaii Vetoes Airbnb Bill; DC Confronts Alligator Gap

July 18, 2016

Remembering Lowell Kalapa

December 31, 2013

Hawaii’s State and Local Tax Burden

October 23, 2012

New Developments in the Wave of Bag Bans and Charges

March 2, 2012

Unemployment Drops in 46 States: Exceptions are Hawaii, Illinois, Mississippi, North Carolina

January 26, 2012

Hawaii State of the State Address Seeks Wasteful Credits and Soda Tax

January 24, 2012

A Sales Tax Word of Warning in Hawaii, New Mexico, South Dakota, and Wyoming

September 30, 2011

Bill Clinton Promotes Tax Breaks for the Film Industry

February 17, 2011

Hawaii Gov. Abercrombie Calls for Alcohol Tax Increase, Soda Tax, Tax on Pensions

January 25, 2011

Record Number of States Delaying Tax Refunds

June 3, 2010

Today is Tax Freedom Day Nationally (and for Hawaii)

April 9, 2010

Delinquent States

February 19, 2010

Hawaii Floats Another Real Estate Tax

February 9, 2010

Hawaii May Not Get Expected Revenue From Cigarette Tax Increase As Smoking Drops

December 29, 2009

Hawaii’s Gross Receipts Tax: Economically Damaging Despite Low Rate

December 15, 2009

More Updated State Tax Rate Tables: Sales, Excise, and Corporate Income Taxes

July 16, 2009

New Podcast: Jamie Story of the Grassroot Institute of Hawaii – Tax Hikes in the Aloha State

June 3, 2009