Hawaii

Tax Rate Range: Low - 1.4%; High - 8.25%
Income Brackets: *Lowest - $2,000; Highest - $40,000
Number of Brackets: 9
Personal Exemptions: Single - $1,040; Married - $2,080; Dependents - $1,040
There is an additional exemption for those over age 65. If you are blind, deaf or totally disabled and your impairment has been certified, you can claim a disability exemption of $7,000 in lieu of the $1,040 personal exemption amount.
Standard Deduction: Single - $1,500; Married filing joint return - $1,900
Medical/Dental Deduction: Same as Federal taxes
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security, military, federal, state/local, and some private pensions are exempt. All out-of-state government pensions are exempt.
Retired Military Pay: Not taxed.
Military Disability Retired Pay:

State Tax Software

Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.

Sales Taxes

State Sales Tax: (General Excise Tax) 4% (prescription drugs exempt) Beginning in 2007 Oahu has added a county surcharge tax of 1/2% to pay for a mass transit system.
Gasoline Tax: 31.8 cents/gallon
Diesel Fuel Tax: 44.1 cents/gallon
(Local option taxes may add 8.8 to 18 cents to fuel tax)
Cigarette Tax: $1.60/pack of 20

Personal property such as cars or boats are not subject to property tax. Real property and land are assessed at 100% "fair market value." Taxes are administered by the four counties. The homestead exemption is $12,000, but is $40,000 in the city and county of Honolulu. Persons 60 to 69 years of age may claim double the homestead exemption, and a person age 70 or older, may claim 2.5 times the homestead exemption. In the city and county of Honolulu, the exemptions are: 55-59 years, 1.5 times the exemption amount; 60-64 years, 2.0 times; 65-69, 2.5 times, and 70 and older, 3.0 times. Homeowners 55 and older are exempt from property taxes on $60,000 to $120,000 (amount depends on owner's age) of the assessed value of their residence, regardless of income. They must pay at least $100 in taxes, however. Homeowners 55 and older who earn less than $20,000 are also eligible for a tax credit of up to $500. Call 808-587-4343 for details.

{tab = Estate Taxes

There is no inheritance tax and only a limited estate tax related to federal estate tax collection.
For further information, visit the Hawaii Department of Taxation site or call 800-222-3229 or 808-587-4242..

Last Updated ( Monday, 21 January 2008 )

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