Hawaii Income Tax Guide: Rates, Brackets & Exemptions for 2026

Hawaii has progressive income tax rates from 1.4% to 11% — one of the highest top rates in the nation, but with generous retirement exemptions.

Hawaii Income Tax Rates for 2026

Note: The bracket thresholds below reflect the last confirmed structure. Sources disagree on the exact current top-bracket threshold (some cite $200,000/$400,000, others cite higher figures) — confirm the exact current-year thresholds with the Hawaii Department of Taxation before relying on precise numbers. A new 13% top bracket, created by 2023 legislation (Act 122), is scheduled to take effect starting with the 2027 tax year for income above roughly $400,000 single — this guide reflects the rate structure before that change takes effect.

Single Filers

Married Filing Jointly

Note: Hawaii has 12 tax brackets — the most of any state.

Hawaii Tax Calculator Examples

Example 1: $100,000 Single Filer

Example 2: $200,000 Married Filing Jointly

Hawaii Standard Deduction (2026)

Hawaii’s standard deduction is much smaller than the federal deduction ($16,100 single / $32,200 married for 2026).

Hawaii Retirement Income

Pension Income

Hawaii exempts most employer-funded pension income:

Social Security

Fully exempt — Hawaii does not tax Social Security benefits.

401(k) and IRA

Note: Hawaii pension exemption rules are complex and depend on whether the plan was employer-funded or employee-funded — consult the Hawaii Department of Taxation or a tax professional for your specific situation.

What Income is Taxed in Hawaii?

Taxed:

• Wages and salaries
• Self-employment income
• Interest and dividends
• Capital gains (confirm whether a preferential rate still applies, as some sources cite a cap distinct from the 11% ordinary top rate)
• 401(k)/IRA withdrawals (generally)
• Rental income

Not taxed or exempt:

• Social Security — Fully exempt
• Most employer-funded pension income
• Military retirement (generally)
• Hawaii state/municipal bond interest

Hawaii vs. Other States

Hawaii has one of the highest top rates nationally.

Hawaii General Excise Tax (GET)

Instead of a traditional sales tax, Hawaii has GET:

GET is applied at each level of a transaction, making effective rates on final consumer prices somewhat higher than the stated rate suggests, since it is generally passed through at each stage.

Hawaiian Filing Requirements

Note: Hawaii’s due date is April 20, not April 15.

Hawaii Property Tax

Confirm the current average effective property tax rate with the Hawaii Department of Taxation or a source like the Tax Foundation, as this figure was not independently re-verified this session. Hawaii has historically had among the lowest property tax rates in the nation, which helps offset the state’s high income tax.

Hawaii Cost of Living

Hawaii’s cost of living has historically been well above the national average, driven especially by housing. Confirm current comparison figures with a source like the Council for Community and Economic Research (C2ER), as these change over time and were not independently re-verified this session.

Hawaii Estate Tax

Unlike many no-estate-tax states, Hawaii does impose its own state estate tax, with a historically high top rate among the states that have one. See the Estate Tax by State guide for details, and confirm the current exemption amount with the Hawaii Department of Taxation, as it is a separate figure from the federal estate tax exemption.

Tips to Reduce Hawaii Taxes

1. Maximize pension income — Employer-funded pensions are often exempt
2. Roth conversions before retirement — Avoid taxable withdrawals later
3. Claim all exemptions — Confirm current exemption amounts with the Hawaii Department of Taxation
4. Consider Roth accounts — Qualified withdrawals are tax-free
5. Work with a Hawaii tax professional — Rules on pension income and the state estate tax are complex

Hawaii Tax Authority

Hawaii Department of Taxation

• Website: tax.hawaii.gov
• Phone: 808-587-4242
• For refunds, returns, and questions

Bottom Line

Hawaii has progressive income tax rates from 1.4% to 11% — among the highest top rates nationally, with a new 13% bracket scheduled for 2027. However, Social Security and most employer-funded pensions are exempt, making it reasonably tax-friendly for retirees with pension income. Property taxes have historically been among the lowest in the nation. The GET (4-4.5%) functions differently from a traditional sales tax, and Hawaii’s high cost of living means overall expenses are very high despite some tax advantages. Unlike many no-estate-tax states, Hawaii does levy its own state estate tax.

For a side-by-side comparison of every state’s income tax rates, see state income tax rates by state 2026 and best and worst states for taxes 2026. Federal income tax applies on top of state taxes — see 2026 federal income tax brackets to calculate your combined liability.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.