Hawaii individual income tax
Hawaii's individual income tax is a tax on the income earned by residents and nonresidents of the state. The tax is based on the individual's federal-adjusted gross income, with rates ranging from 1.4% to 11%.
April 20
Return due in 2023
11%
Top marginal tax rate
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Pay income tax online
Visit the official state government’s website to pay individual income tax online.
Visit HiTax
What is Hawaii income tax?
Individual income tax
Individual income tax is a type of direct tax levied by Hawaii on individuals that meet the taxable criteria.
Taxable incomes
Hawaii taxes incomes from wages, dividends, interests and capital gains.
Tax brackets
Hawaii has 12 individual income tax brackets from 1.4% to 11%.
Standard deduction
Standard deduction is $2,200 for singles and $4,400 for couples and $3,212 for head of households for the tax year 2022.
Personal exemption
Personal exemption is $1,144 for the tax year 2022.
2022 tax rates
The following is the list of income tax rates for the tax year of 2022
| Hawaii taxable income | Tax rate |
|---|---|
| $0 - $2,400 | 1.4% |
| $2,400 - $4,800 | 3.2% |
| $4,800 - $9,600 | 5.5% |
| $9,600 - $14,400 | 6.4% |
| $14,400 - $19,200 | 6.8% |
| $19,200 - $24,000 | 7.2% |
| $24,000 - $36,000 | 7.6% |
| $36,000 - $48,000 | 7.9% |
| $48,000 - $150,000 | 8.25% |
| $150,000 - $175,000 | 9% |
| $175,000 - $200,000 | 10% |
| $200,000+ | 11% |
Individual income tax
The State of Hawaii requires you to pay taxes if you are a resident (regardless of the whether they were earned within the state or not) or a non-resident that earns income from Hawaii
Types of taxable incomes
The income types on which tax is levied are:
In Hawaii, all types of income are generally subject to personal income tax unless they are specifically exempt by state law. This includes, but is not limited to, wages and salary, dividends, capital gains, royalties, and other types of income.
File return
To file a tax return in Hawaii, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
Due
quarterly or annually
Pay taxes
Taxes in Hawaii are due by 20 April, 2023. Go to the official Hawaii Department of Taxation website.
Type of tax
graduated tax
Due
quarterly or annually
Deductions
Tax deductions are a reduction in the amount of income that is subject to taxation. It allows taxpayers to lower the amount of taxable income they have, which in turn reduces the amount of tax they owe. Tax deductions are available for a wide range of expenses, such as charitable donations, mortgage interest, medical expenses, and business expenses.
For 2022 tax year, standard deduction is $2,200 for single filers and $4,400 for joint filers and $3,212 for head of households.
Credits
A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
Exclusions
Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income.
Residency
Residency in Hawaii refers to an individual's permanent home or place of residence in the state.
Hawaii resident
A Hawaii Resident is an individual that is domiciled in Hawaii or has established a permanent residence in Hawaii. The state of Hawaii considers an individual to be a resident if they spend more than 200 days in Hawaii during the tax year.
if an individual's stay in Hawaii is temporary, they may be required to prove that they are a permanent resident of another state.
Hawaii part-year resident
a Part-Year Resident of Hawaii is an individual who has resided in Hawaii for only a portion of the year. This includes individuals who moved into and out of Hawaii during the year. These individuals will be considered residents for the portion of the year that they resided in Hawaii, and nonresidents for the portion of the year that they lived outside of the state.
Income earned while the individual was a resident of Hawaii is subject to state taxes.
Additionally, any income sourced from Hawaii will also be taxed.
Hawaii non-resident
A Hawaii Nonresident is an individual whose permanent residence is not in Hawaii, but is temporarily residing in the state. These individuals may be visiting Hawaii for a short period of time or may have a temporary job or assignment in the state.
Nonresidents who receive income from Hawaii sources are required to pay Hawaii taxes. This includes but not limited to, income from Hawaii properties and personal services performed in the state.
Frequently asked questions
Business entities in Hawaii
There are several business entities in Hawaii
Hawaii LLC
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time