Counties can levy an additional sales tax of no more than 0.5%.
Current average sales tax (with local taxes included): 4.5%
Common Exceptions at State Level:
Prescription Medicine: Exempt
Gasoline Tax: 70.09 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 76.81 cents/gallon (Includes all state, local, and federal taxes)
* Hawaii imposes an excise tax on business in lieu of a sales tax on customers, but the tax is often passed on to the customer.
Personal Income Tax
Personal Income Tax Rate Range: Twelve brackets from 1.4% to 11.0% on income more than $200,000 (Brackets as of May 2024)
Standard deduction: Single filing status: $2,200.
Personal Exemption Allowance: $1,144. Dependent Exemption: $1,144
Itemized Deductions Allowed?: Yes, subject to limitations.
Retirement Income
Social Security: Exempt
IRAs: May be fully or partially taxable*
401Ks/Defined contribution employer retirement plans: May be fully or partially taxable*
Private pensions: May be fully or partially taxable*
Public Pensions: Exempt
Military Pay
Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income. $7,345 of pay for Army Reserve and Hawaii National Guard is exempt.
Military Retirement Pay: Exempt
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: Exempt.
Income tax comments: *Any portion of retirement income that is employee-funded is taxed.
Property Tax
Local municipalities average .27% of the property's assessed value
Calculation of assessed value: 100% of fair market value
Homestead exemption: Reduction in assessed value of $50,000 if under 60, $85,000 between age 60 and 64, $90,000 between age 65 and 69, and $110,000 if over 70. An additional exemption of 20% of assessed value is also available.
Disabled Veterans: Relief programs vary by island.
Personal Property Tax: Yes. Rates and exemptions vary.
Inheritance & Estate Taxes: Estates over $5.49 million are subject to a tax between 10% and 20%.
Premium and Life members can consult our financial staff for education and consumer advice.
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