Hawaii does have a state income tax, and it applies to most residents and workers
Hawaii charges a state income tax on wages, self-employment income, investment income, and other earnings. Unlike some states that tax only certain types of income, Hawaii taxes most forms of money you receive. If you live in Hawaii or work there, you will owe state income tax on your earnings — there is no exemption for residents or a flat tax rate that replaces it.
The tax is progressive, meaning the rate increases as your income rises. Hawaii's rates range from 1.4% on the lowest brackets to 11% on the highest, depending on your filing status and total income. This is one of the highest top rates in the country, though most people pay less because they fall into lower brackets.
Key Takeaways
- Hawaii taxes all residents on income earned anywhere, and taxes non-residents only on income earned within the state.
- Tax rates run from 1.4% to 11% depending on your income level and filing status, with no flat rate option.
- You file Hawaii state taxes using Form N-11 or Form N-15, separate from your federal return.
- Hawaii offers a standard deduction and allows you to claim dependents, similar to federal tax rules.
- If you moved to Hawaii or left during the year, you may file as a part-year resident and owe tax only on the months you lived there.
Hawaii's tax brackets and rates for different income levels
Hawaii uses tax brackets that change each year based on inflation. For the 2024 tax year, a single filer pays 1.4% on the first portion of income, then the rate steps up at each bracket — 3.2%, 5.5%, 7.2%, 8.25%, 9.25%, 10%, and finally 11% on the highest bracket. The exact dollar amounts where each rate kicks in vary by filing status (single, married filing jointly, head of household, or married filing separately).
The Hawaii Department of Taxation publishes updated brackets each January. Because the brackets shift annually, your tax bill can change even if your income stays the same. A married couple filing jointly in 2024, for example, enters the 11% bracket at a different income level than a single filer does — the joint threshold is higher, which is why married couples often pay less total tax on the same combined income.
Hawaii also allows a standard deduction, which reduces the income you actually pay tax on. For 2024, the standard deduction ranges from $2,600 for single filers to $5,200 for married couples filing jointly. If your total income is below the standard deduction for your filing status, you may not owe Hawaii state tax at all.
Who has to file a Hawaii state tax return
You must file a Hawaii state return if you are a resident and your income exceeds the standard deduction for your filing status. Residents include anyone who lived in Hawaii for the entire tax year, or anyone who maintained a permanent home there even if they spent part of the year elsewhere. Hawaii taxes residents on all income, regardless of where it was earned.
Non-residents who worked in Hawaii or earned income there must also file, but only on the income earned within the state. If you moved to Hawaii partway through the year, or left partway through, you file as a part-year resident and report only the income from the months you lived there. The same rule applies if you moved out of Hawaii — you owe tax only on income earned before you left.
Even if you do not owe tax, you may still need to file to claim a refund of taxes withheld from your paychecks. If your employer took out Hawaii state tax but your income fell below the standard deduction, filing gets that money back to you.
The forms you use to file Hawaii state taxes
Hawaii residents use Form N-11 (Hawaii Individual Income Tax Return) or Form N-15 (Hawaii Resident Income Tax Return), depending on their situation. Form N-11 is the standard form for most filers. Form N-15 is used by certain residents, including those with military income or specific types of deductions. The Hawaii Department of Taxation website lists which form applies to your situation.
You file your Hawaii return separate from your federal return — they do not combine. You can file by mail or electronically through approved tax software or the state's online system. The important date is the same as the federal important date, typically April 15, though it shifts to the next business day if April 15 falls on a weekend or holiday.
If you file federal taxes electronically, you can usually file Hawaii taxes electronically at the same time. Some tax software includes Hawaii forms; others charge extra. You can also read the forms from the Hawaii Department of Taxation website and file by mail, though electronic filing is faster and reduces errors.
Deductions and credits available to Hawaii taxpayers
Hawaii allows a standard deduction or an itemized deduction, similar to federal tax rules. Most people use the standard deduction because it is simpler and often results in lower tax. If you have large medical expenses, mortgage interest, property taxes, or charitable donations, you may benefit from itemizing instead — you calculate both and use whichever is larger.
Hawaii also offers tax credits that reduce your tax bill directly. These include credits for dependent children, credits for taxes paid to other states (if you worked in multiple states), and credits for certain types of income like military retirement pay. Credits are more valuable than deductions because they subtract from your tax owed, not just from your income.
The state also allows exemptions for dependents — you can claim your spouse, children, and other dependents you support, which lowers your taxable income. The number of exemptions you claim affects which tax bracket you fall into and how much tax you owe.
How Hawaii taxes compare to other states
Hawaii's top tax rate of 11% is among the highest in the country. Only a handful of states have rates that high or higher — California, Oregon, and a few others. However, most Hawaii residents do not pay the top rate; they pay whatever rate applies to their income bracket. A person earning $50,000 pays a much lower effective rate than someone earning $500,000.
Hawaii does not have a sales tax, which is unusual — most states use sales tax to fund services. This means Hawaii relies more heavily on income tax than many other states do. The combination of income tax and no sales tax can make Hawaii's overall tax burden higher or lower than neighboring states, depending on your income level and spending habits.
Hawaii also taxes retirement income, including Social Security benefits and distributions from retirement accounts, though certain types of military retirement pay and some pension income receive preferential treatment. If you are retired and considering moving to Hawaii, your tax bill may be higher than in a state with no income tax.
What happens if you move to or from Hawaii during the year
If you moved to Hawaii partway through the year, you file as a part-year resident. You report income earned only during the months you lived in Hawaii. Your standard deduction is reduced proportionally — if you lived in Hawaii for six months, your standard deduction is roughly half the full-year amount. You calculate tax on the reduced income against the reduced deduction.
If you left Hawaii during the year, the same rule applies in reverse. You report only income earned before you left the state. You file a part-year resident return showing the date you moved out. This prevents you from paying Hawaii tax on income earned after you were no longer a resident.
The date you move matters for tax purposes. Hawaii considers you a resident starting the day you arrive and intending to stay, not the day you sign a lease or buy a home. If you are unsure whether you may have access to as a part-year resident, contact the Hawaii Department of Taxation — they can clarify your status based on the specific dates you moved.
Frequently Asked Questions
Do I have to pay Hawaii income tax if I work remotely for a mainland company?
Yes, if you are a Hawaii resident, you owe Hawaii tax on all income, including remote work for an out-of-state employer. Your employer's location does not matter — only where you live and where you earned the money. If you are a non-resident who works remotely for a company outside Hawaii, you do not owe Hawaii tax on that income.
What is Hawaii's standard deduction for 2024?
The standard deduction for 2024 is $2,600 for single filers, $5,200 for married couples filing jointly, and $3,900 for head of household filers. These amounts increase slightly each year. Check the Hawaii Department of Taxation website for the current year's amounts, as they change annually.
Can I claim dependents on my Hawaii return?
Yes, you can claim dependents on your Hawaii return, and each dependent reduces your taxable income. The rules are similar to federal tax rules — the person must be a may have access to child or relative, live with you for most of the year, and you must provide more than half their financial support. Each dependent lowers your tax bracket and reduces your overall tax bill.
Do I need to file a Hawaii return if I only earned a small amount?
If your income is below the standard deduction for your filing status, you do not have to file. However, if your employer withheld Hawaii state tax from your paychecks, you should file to get a refund. Filing takes only a few minutes and puts money back in your pocket.
What if I moved to Hawaii but still own property on the mainland?
You owe Hawaii tax on all income as a resident, including income from mainland property like rental income or capital gains from selling land. Hawaii taxes residents on worldwide income. If you also owe tax to another state on that same income, you may be able to claim a credit for taxes paid to that state, which reduces your Hawaii tax bill.