September 2026 update: You are now most of the way through the first full tax year under Hawaii’s Act 46 standard deduction increase — $8,000 for single filers and $16,000 for married filing jointly, roughly double the 2025 amounts. If your income or withholding situation has changed this year (new employer, self-employment income, major deductions), September is a good time to review your Hawaii HW-4 withholding allowances with your payroll department to avoid a surprise balance due next April.
What Taxes Do You Pay in Hawaii?
If you’re planning a move to Hawaii — or you just landed here and got your first paycheck — you’re probably wondering where all your money went. Hawaii’s tax system is… unique. There’s no traditional sales tax, but there’s something arguably worse. Property taxes are shockingly low, but income taxes can hit 11%. And then there’s the General Excise Tax, which touches basically everything.
Here’s a complete breakdown of every major tax you’ll encounter living in Hawaii in 2026, with actual numbers so you can plan accordingly.
Hawaii Income Tax: 12 Brackets From 1.4% to 11%
Hawaii has one of the most progressive income tax systems in the country, with 12 tax brackets ranging from 1.4% all the way up to 11%. That top rate kicks in at $325,000 for single filers — which sounds like a lot until you factor in Hawaii’s cost of living.
2025–2026 Tax Brackets (Single Filers)
Hawaii’s bracket thresholds are identical for tax years 2025 and 2026, so the table below applies whether you’re filing your 2025 return (due in 2026) or planning for 2026 income:
- $0 – $9,600: 1.4%
- $9,601 – $14,400: 3.2%
- $14,401 – $19,200: 5.5%
- $19,201 – $24,000: 6.4%
- $24,001 – $36,000: 6.8%
- $36,001 – $48,000: 7.2%
- $48,001 – $125,000: 7.6%
- $125,001 – $175,000: 7.9%
- $175,001 – $225,000: 8.25%
- $225,001 – $275,000: 9.0%
- $275,001 – $325,000: 10.0%
- Over $325,000: 11.0%
For married couples filing jointly, brackets are roughly doubled. The top 11% rate starts at $650,000.
The Standard Deduction Just Doubled for 2026
Good news: Hawaii’s Act 46 tax reform (passed in 2024) is rolling out over several years, and a big step took effect for tax year 2026 — the income you’re earning right now. The standard deduction roughly doubled:
- Single: $8,000 for 2026 (up from $4,400 in 2025)
- Married Filing Jointly: $16,000 for 2026 (up from $8,800 in 2025)
- Head of Household: $12,000 for 2026 (up from $6,424 in 2025)
One timing note: if you’re filing a 2025 return in early 2026, you still use the lower 2025 deduction ($4,400 single). The new $8,000 amount applies to 2026 income, which you’ll file in early 2027. The next change after that lands in tax year 2027, when the brackets themselves widen further — pushing more income into lower rates. It’s a meaningful tax cut for most Hawaii residents, especially middle-income families squeezed by the high cost of living in Hawaii.
How Hawaii Compares
Hawaii’s top rate of 11% is the highest state income tax rate in the country, tied with California. But context matters: many mainland transplants coming from states like Texas, Florida, or Washington (which have zero state income tax) feel the hit hardest. If you’re planning your move to Hawaii, factor state income tax into your budget from day one.
One silver lining: Hawaii doesn’t tax Social Security benefits, and there are exemptions for certain pension income — making it somewhat friendlier for retirees than the top-line rate suggests.
Hawaii’s General Excise Tax (GET): Not a Sales Tax, But Close
This is the one that trips everyone up. Hawaii doesn’t have a “sales tax.” Instead, it has the General Excise Tax (GET), which is levied on businesses for the privilege of doing business in Hawaii. The base rate is 4% statewide, with an additional county surcharge of up to 0.5% in some counties.
How GET Actually Works
Here’s what makes GET different from a regular sales tax:
- It’s charged on the business, not the consumer. Legally, GET is a tax on the business’s gross receipts. However, most businesses pass it along to customers — so you’ll see it added to your bill at restaurants, stores, and service providers.
- It applies to almost everything. Unlike mainland sales taxes that typically exempt groceries and medicine, GET applies to food, rent, medical services, and even services between businesses. There are very few exemptions.
- It’s pyramiding. Because GET applies at every level of a transaction (manufacturer, wholesaler, retailer), the effective tax burden can exceed the stated 4-4.5% rate. When a contractor buys materials (taxed), hires a subcontractor (taxed), and then charges you for the project (taxed again), GET has been applied multiple times.
Current GET Rates by County
- Honolulu (Oahu): 4.5% (4% state + 0.5% county surcharge)
- Maui County: 4.5%
- Hawaii County (Big Island): 4.5%
- Kauai County: 4.5%
As of 2025, all four counties have adopted the 0.5% surcharge, primarily to fund public transit projects. On Oahu, it funds the Skyline rail project.
What GET Means for Your Budget
In practice, GET adds up fast. Your rent? GET applies. Your groceries? GET applies. That plumber you called? GET applies. When you’re already dealing with Hawaii’s higher prices, an additional 4.5% on virtually everything is significant. Budget an extra $2,000–$4,000 per year depending on your spending, beyond what you’d pay in a typical sales-tax state.
Hawaii Property Tax: Lowest in the Nation
Here’s where Hawaii gives you a break. The state has the lowest effective property tax rate in the entire United States, averaging around 0.32% of a home’s assessed value. Compare that to states like New Jersey (2.23%) or Illinois (2.07%), and it’s a massive difference.
Why Property Taxes Are So Low
Two main reasons:
- High property values inflate the base. When the median home price is $700,000–$1,000,000+, even a low rate generates substantial revenue.
- Homeowner exemptions. Every county offers a homeowner exemption that reduces your taxable assessed value if you live in the home as your primary residence. On Oahu, the homeowner exemption is $120,000 off your assessed value, and you get access to a much lower “Residential” tax rate.
Property Tax Rates Vary by County
Property taxes in Hawaii are set at the county level, and rates vary significantly based on your property’s classification (owner-occupied, investment, commercial, agricultural, etc.). For a detailed breakdown of current rates, check our complete guide to Hawaii property tax rates by county.
Here’s a quick snapshot of owner-occupied residential rates (per $1,000 of assessed value) for fiscal year 2026–2027:
- Honolulu: $3.50 per $1,000 (Residential class with homeowner exemption)
- Maui: $1.65 per $1,000 (Owner-Occupied, up to $1.5M)
- Hawaii County: $5.75 per $1,000 (Homeowner class)
- Kauai: $2.59 per $1,000 (Homestead/Owner-Occupied)
Real-World Example
Say you buy a $750,000 home on Oahu and live in it as your primary residence. After the $120,000 homeowner exemption, your taxable value is $630,000. At the Residential rate of $3.50 per $1,000, your annual property tax would be approximately $2,205. That’s remarkably low compared to what you’d pay on a similarly priced home in most mainland states.
Important: if you own property in Hawaii but don’t live there (investment property, vacation home), rates jump dramatically — sometimes 3–4x the owner-occupied rate.
Other Taxes to Know About
Transient Accommodations Tax (TAT)
If you’re renting out a property short-term (vacation rental), you’ll owe the Transient Accommodations Tax at a rate of 10.25% of gross rental income, on top of GET. Some counties add their own surcharge as well. Between TAT, GET, and county surcharges, short-term rental income in Hawaii can face an effective tax rate of 17–18% before you even get to income tax.
Estate and Inheritance Tax
Hawaii is one of the few states that levies an estate tax. It applies to estates valued over $5.49 million, with rates ranging from 10% to 20%. Most residents won’t be affected, but it’s worth knowing if you’re planning long-term.
Vehicle and Fuel Taxes
Hawaii charges a vehicle weight tax and registration fees annually. Gas prices in Hawaii are consistently the highest in the nation — partly due to GET applying to fuel purchases on top of federal and state fuel taxes. Expect to pay $4.50–$5.50+ per gallon on average.
How to Reduce Your Hawaii Tax Burden
While you can’t avoid Hawaii’s taxes entirely, there are legitimate ways to reduce what you owe:
- Claim the homeowner exemption. If your home is your primary residence, file for the homeowner exemption with your county. This is free money — lower rates and a reduced taxable value.
- Maximize retirement account contributions. Hawaii follows federal rules on 401(k), IRA, and HSA contributions, which reduce your state taxable income.
- Know your deductions. With the standard deduction rising to $8,000 (single) in 2026, compare it against itemizing. If you have a mortgage, high medical expenses, or significant charitable donations, itemizing might still win.
- Look into the Low-Income Renter’s Credit. If you rent and your income is below certain thresholds, Hawaii offers a refundable tax credit of $50 per exemption.
- Consider your island carefully. Property tax rates differ significantly between counties. If you’re choosing between islands and taxes are a factor, compare the total tax picture — not just property tax, but also GET surcharges and county-specific fees.
Frequently Asked Questions
Does Hawaii have a sales tax?
Technically, no. Hawaii has a General Excise Tax (GET) instead, which is levied on businesses at 4% (plus a 0.5% county surcharge in all four counties). Most businesses pass this cost to consumers, so it functions similarly to a sales tax — but it applies more broadly, including to rent, groceries, and services.
Why are Hawaii income taxes so high?
Hawaii’s top income tax rate of 11% is the highest in the nation (tied with California). The high rate helps fund state services for a population spread across multiple islands, including public education, healthcare, and infrastructure that’s uniquely expensive to maintain in an island state. However, recent tax reform is gradually reducing the effective burden for middle-income earners through expanded brackets and higher standard deductions.
How much are property taxes in Hawaii?
Hawaii has the lowest effective property tax rate in the U.S., averaging about 0.32% of home value. On a $750,000 owner-occupied home on Oahu, you’d pay roughly $2,000–$2,500 per year. Rates vary by county and property classification — investment properties and vacation homes pay significantly more than primary residences.
Is Hawaii a good state for retirees tax-wise?
It depends. Hawaii doesn’t tax Social Security benefits, and certain pension income may be partially exempt. Property taxes are very low for homeowners. However, the 11% top income tax rate applies to investment income (capital gains, dividends), and GET raises the cost of everyday goods and services. Retirees on fixed incomes should carefully model their total tax burden before relocating.