Hawaii Tax Brackets and Income Tax Rates

Hawaii employs a progressive income tax structure, where the tax rate increases as income rises. This system means higher earners are subject to higher tax percentages on portions of their income. This article covers Hawaii’s tax brackets, how to calculate taxable income, and common credits and filing procedures.

Hawaii Income Tax Rates and Brackets

With a progressive system, you don’t pay your highest tax rate on your entire income. Instead, your income is divided into portions, or brackets, and each is taxed at its corresponding rate. For example, a single filer with $50,000 in taxable income for the 2024 tax year falls into the 8.25% bracket, but only the income within that specific bracket is taxed at 8.25%. Income in lower brackets is taxed at lower rates.

Tax rates are applied differently based on filing status: Single, Married Filing Separately, Married Filing Jointly or Qualifying Widow(er), and Head of Household. Each status has its own set of income brackets. The income threshold for a given tax rate for those Married Filing Jointly is double that for a Single filer, reflecting combined household income.

House Bill 2404, enacted in June 2024, adjusted the income tax brackets and increased the standard deduction. While the 2024 tax year (filed in 2025) maintains the same bracket structure as 2023, new, wider brackets will take effect starting in tax year 2025. These changes are designed to provide tax relief by expanding the amount of income subject to lower rates.

Below are the tax brackets for the 2024 tax year.

Single / Married Filing Separately
| Tax Rate | Taxable Income |
| — | — |
| 1.40% | Up to $2,400 |
| 3.20% | $2,401 – $4,800 |
| 5.50% | $4,801 – $9,600 |
| 6.40% | $9,601 – $14,400 |
| 6.80% | $14,401 – $19,200 |
| 7.20% | $19,201 – $24,000 |
| 7.60% | $24,001 – $36,000 |
| 7.90% | $36,001 – $48,000 |
| 8.25% | $48,001 – $150,000 |
| 9.00% | $150,001 – $175,000 |
| 10.00% | $175,001 – $200,000 |
| 11.00% | Over $200,000 |

Married Filing Jointly / Qualifying Widow(er)
| Tax Rate | Taxable Income |
| — | — |
| 1.40% | Up to $4,800 |
| 3.20% | $4,801 – $9,600 |
| 5.50% | $9,601 – $19,200 |
| 6.40% | $19,201 – $28,800 |
| 6.80% | $28,801 – $38,400 |
| 7.20% | $38,401 – $48,000 |
| 7.60% | $48,001 – $72,000 |
| 7.90% | $72,001 – $96,000 |
| 8.25% | $96,001 – $300,000 |
| 9.00% | $300,001 – $350,000 |
| 10.00% | $350,001 – $400,000 |
| 11.00% | Over $400,000 |

Head of Household
| Tax Rate | Taxable Income |
| — | — |
| 1.40% | Up to $3,600 |
| 3.20% | $3,601 – $7,200 |
| 5.50% | $7,201 – $14,400 |
| 6.40% | $14,401 – $21,600 |
| 6.80% | $21,601 – $28,800 |
| 7.20% | $28,801 – $36,000 |
| 7.60% | $36,001 – $54,000 |
| 7.90% | $54,001 – $72,000 |
| 8.25% | $72,001 – $225,000 |
| 9.00% | $225,001 – $262,500 |
| 10.00% | $262,501 – $300,000 |
| 11.00% | Over $300,000 |

Calculating Your Hawaii Taxable Income

Before applying Hawaii’s tax rates, you must determine your taxable income. The calculation starts with your federal adjusted gross income (AGI) and then incorporates Hawaii-specific modifications. This figure is not simply your total salary; it’s your gross income minus any allowable adjustments and deductions.

A primary way to reduce your taxable income is by taking the standard deduction. For the 2024 tax year, Hawaii has significantly increased these amounts. Single filers and those married filing separately can claim a standard deduction of $4,400. For heads of household, the amount is $6,424, and for married couples filing jointly and qualifying widow(er)s, it is $8,800.

In addition to the standard deduction, Hawaii allows taxpayers to claim personal exemptions of $1,144 for each person claimed, including the taxpayer, their spouse, and any dependents. Taxpayers aged 65 or older can claim an additional exemption. If you can be claimed as a dependent on someone else’s tax return, you are not permitted to claim a personal exemption for yourself.

While most taxpayers use the standard deduction, some may find it more advantageous to itemize deductions. This involves listing specific deductible expenses, such as certain medical costs, state and local taxes, and charitable contributions. If the total of your itemized deductions exceeds the standard deduction for your filing status, itemizing will result in a lower taxable income.

Common Hawaii Tax Credits

While a deduction lowers your taxable income, a tax credit provides a dollar-for-dollar reduction of your tax liability. Hawaii offers several tax credits, with some of the most common being the Food/Excise Tax Credit and the Credit for Low-Income Household Renters.

The Refundable Food/Excise Tax Credit is designed to help offset the state’s general excise tax for lower-income residents. To qualify, your federal adjusted gross income must fall below a certain threshold, which for 2024 was under $60,000 for families and $40,000 for single filers. The credit amount is per qualified exemption, meaning you can claim it for yourself, your spouse, and each dependent.

Another widely applicable credit is the Credit for Low-Income Household Renters. This credit provides relief to renters who have low incomes and pay a substantial portion of it in rent. To be eligible, a taxpayer must have resided in Hawaii for more than nine months of the tax year and paid more than $1,000 in rent. The credit amount is calculated based on the taxpayer’s adjusted gross income and the total rent paid during the year.

Filing Your Hawaii Tax Return

After calculating your taxable income and credits, the final step is to file your tax return with the Hawaii Department of Taxation. The primary form for full-year residents is Form N-11, while nonresidents or part-year residents use Form N-15. These forms are where you report your income, deductions, and credits to determine your final tax liability or refund.

Hawaii provides several methods for filing your return. The state’s official online portal, Hawaii Tax Online, allows for electronic filing. Many taxpayers also use approved third-party tax preparation software, and paper returns can be mailed to the Department of Taxation.

The annual filing deadline is April 20th. An extension can be requested if you need more time to file. However, an extension to file is not an extension to pay any taxes you may owe.