Hawaii Tax Guide 2026

Hawaii Income Tax Overview

Hawaii has a Progressive rates up to 11% — 2nd highest in US. When combined with federal income tax and FICA taxes, Hawaii residents in the median income range of $88,005 typically face a combined effective tax rate of approximately 34% on their gross income. The state income tax is calculated on taxable income after the federal standard deduction of $16,100 (single) or $32,200 (married filing jointly) for 2026.

Hawaii Sales Tax Rate 2026

Hawaii's combined sales tax rate is 4.50%, which includes a state rate plus an average local rate. On a $100 purchase, you pay $4.50 in sales tax — and $22.50 on a $500 purchase. Rates can vary within the state based on county and city jurisdiction.

Property Taxes in Hawaii

Hawaii homeowners pay an effective property tax rate of 0.28% annually. On the Hawaii median home price of $835,000, that means approximately $2,338 per year — or $195 added to your monthly mortgage payment. Hawaii's property taxes are among the lowest in the US, making homeownership more affordable relative to home prices.

Total Tax Burden for Hawaii Residents

When calculating the total tax burden for a Hawaii household earning $88,005 annually, you must add: federal income tax (approximately $10,561), FICA taxes (7.65% = $6,732), Hawaii state income tax (approximately $6,776), and property taxes if you own a home. Use the specific calculators above to get your exact personalized numbers based on your income, filing status, and situation.

Tax Tips for Hawaii Residents in 2026

• Maximize your 401(k) to $24,500 — reduces both federal AND Hawaii state income tax
• HSA contributions are deductible from both federal and state income tax in Hawaii
• Check if Hawaii has its own standard deduction (some states have lower amounts than federal)
• The 2026 OBBBA tip and overtime deductions apply at federal level — check Hawaii conformity