Disclaimer: This calculator gives you an estimate based on tax rates and details found online. These rates may change over time. For the most accurate and up-to-date information, please check the official IRS website and your state’s tax website. Always talk to a tax expert for advice about your personal tax situation.
How We Calculate the Result
To estimate your Hawaii income tax, we start with your total household income. Then we subtract any contributions to 401(k), IRA, itemized deductions, and personal exemptions (if you added them). We compare your itemized deductions with the standard deduction and use the higher value. Once we calculate your taxable income, we apply Hawaii’s progressive tax rates, which range from 1.4% to 11%, depending on how much you earn and your filing status. Lastly, we show your estimated tax, your effective tax rate, and whether you’re required to file federal taxes based on your age and filing status.
About Hawaii Income Tax
Hawaii has one of the most detailed progressive income tax systems in the U.S. This means that the more you earn, the higher the percentage you pay in state income tax. The tax rates in Hawaii range from 1.4% for low-income earners to 11% for high-income earners. Your income is taxed in segments, not all at once. For example, the first part of your income is taxed at a low rate, and only the higher amounts are taxed at higher rates.
In addition to your income, Hawaii lets you subtract some amounts like retirement contributions (401k, IRA), itemized deductions, and personal exemptions. These lower your taxable income, so you might pay less tax. Hawaii’s standard deduction and personal exemption amounts vary depending on your filing status (single, married, etc.).
The state offers a standard deduction:
- $2,200 for single filers
- $4,400 for married couples filing jointly
Personal exemption: $1,144 per exemption claimed.
The result is a detailed and accurate estimate of your Hawaii state income tax.
Frequently Asked Questions
What is the income tax rate in Hawaii?
Hawaii has a progressive income tax rate ranging from 1.4% to 11%. The exact rate depends on how much money you make and your filing status. Lower income is taxed at lower rates, and only the highest portion of your income gets taxed at higher rates.
When do singles start paying Hawaii income tax?
If you’re under age 65 and single, you must file a Hawaii tax return if you make $3,344 or more in gross income. If you’re 65 or older, the threshold is $4,488. These numbers are lower than federal filing limits, so check carefully.
When do married filers start paying Hawaii income tax?
Married couples filing jointly must file if their combined income is $6,688 or more if both are under 65. If one spouse is 65 or older, the threshold increases slightly. Hawaii has low filing thresholds compared to federal rules.
How is Hawaii income tax different from others?
Hawaii’s income tax has 12 brackets, more than most states. Its top tax rate of 11% is one of the highest in the country. Hawaii also allows itemized deductions, standard deduction, and exemptions to reduce your taxable income.
Do retirees pay Hawaii state tax?
Some retirement income like Social Security is not taxed in Hawaii, but other retirement income like pensions or withdrawals from retirement accounts may be taxed. It depends on the type of retirement income and how much you withdraw.