What Is the Income Tax Rate in Hawaii?

Hawaii, like the federal government and many other states, imposes an income tax on earnings. This tax applies to both residents and non-residents who derive income from sources within the state. The specific amount of income tax owed in Hawaii depends on several factors, including the taxpayer’s income level, filing status, and any applicable deductions or credits.

Hawaii Income Tax Rates and Brackets

Hawaii operates a progressive income tax system, meaning that as income increases, higher portions of that income are taxed at incrementally higher rates. The state utilizes 12 distinct tax brackets.

For the 2024 tax year, which is filed in 2025, Hawaii’s income tax rates range from a low of 1.4% to a high of 11%. The income thresholds for these brackets vary based on filing status. For instance, single filers and those married filing separately have one set of income ranges, while married individuals filing jointly or qualifying widow(er)s have different, generally wider, income ranges for the same rates.

The lowest rate of 1.4% applies to the initial portion of taxable income, such as the first $2,400 for single filers or $4,800 for those married filing jointly. Conversely, the top rate of 11% applies to taxable income exceeding $200,000 for single filers or $400,000 for married individuals filing jointly.

Factors Affecting Your Hawaii Tax Liability

Various deductions and credits can reduce an individual’s Hawaii income tax liability. Deductions are amounts that lower a taxpayer’s adjusted gross income (AGI), which in turn reduces the amount of income subject to tax. Taxpayers can choose between taking a standard deduction or itemizing their deductions if their specific expenses exceed the standard amount.

For the 2024 tax year, Hawaii’s standard deduction amounts increased to $4,400 for single filers and those married filing separately. Married couples filing jointly or qualifying widow(er)s can claim a standard deduction of $8,800, and heads of household can claim $6,424. These amounts are designed to simplify tax filing for many individuals and provide a baseline reduction in taxable income.

In addition to deductions, tax credits directly reduce the amount of tax owed, often on a dollar-for-dollar basis. Hawaii offers several credits. The state’s Earned Income Tax Credit (EITC) for 2024 is equal to 40% of the federal EITC, providing a substantial benefit for low to moderate-income working individuals and families.

Another notable credit is the refundable Food/Excise Tax Credit, available to residents with an adjusted gross income below certain thresholds, such as $60,000 for couples or $40,000 for single filers in 2024. This credit can provide up to $220 per family member for the 2024 tax year. The Low-Income Household Renter’s Credit is also a refundable credit for renters whose Hawaii AGI is under $30,000. Furthermore, a credit for childcare expenses is available, which can be up to $20,000.

Calculating Your Hawaii Income Tax

Calculating Hawaii income tax involves several steps. The initial step is to determine your total gross income, encompassing wages, salaries, interest, dividends, and other earnings. From this gross income, certain state-specific adjustments are subtracted to arrive at your Hawaii Adjusted Gross Income (AGI).

Once your Hawaii AGI is established, the next step involves applying either the standard deduction or itemized deductions. If your itemized deductions, such as certain medical expenses or charitable contributions, exceed the standard deduction amount for your filing status, you would choose to itemize to further reduce your taxable income. The result of subtracting these deductions from your AGI is your Hawaii taxable income.

With your Hawaii taxable income determined, you then apply the state’s progressive tax rates and brackets. Each portion of your taxable income falls into a specific bracket, and the corresponding tax rate is applied to that portion. For example, the first segment of income is taxed at the lowest rate, the next segment at a slightly higher rate, and so on, until the entire taxable income is accounted for. This calculation yields your preliminary tax liability before credits.

Finally, any eligible tax credits are applied to directly reduce this preliminary tax liability. After subtracting all applicable credits, the remaining figure represents your total Hawaii income tax liability for the year.

Filing Your Hawaii Income Tax Return

Filing a Hawaii income tax return is a requirement for most residents, part-year residents, and non-residents who have earned income from sources within the state. Compliance with filing obligations helps ensure adherence to state tax laws.

Taxpayers have several convenient options for submitting their Hawaii income tax returns. Electronic filing (e-filing) through approved tax software or the Hawaii Tax Online portal is a common method, offering a secure and often faster way to process returns and receive refunds. Alternatively, taxpayers can choose to file paper forms by mail.

The primary deadline for filing Hawaii individual income tax returns for the 2024 tax year is April 21, 2025. For taxpayers who need additional time, Hawaii grants an automatic six-month extension to file, moving the deadline to October 21, 2025. This extension to file is automatic and does not require submitting a specific form, provided the taxpayer pays any properly estimated tax liability by the original April 21st due date or is due a refund.

It is important to note that an extension to file does not grant an extension to pay any taxes owed; payment of estimated tax liability is still due by the April 21st deadline to avoid penalties and interest. Official tax forms and detailed instructions are readily available on the Hawaii Department of Taxation website, serving as a primary resource for taxpayers seeking accurate and up-to-date information.