Hawaii state income tax
Hawaii has a state income tax. It is graduated, with a top marginal rate of 11%. 12 brackets from 1.40% to 11.00%. For taxable years beginning after 12/31/2024 (Act 46, SLH 2024 bracket-widening/'Green Affordability Plan II'): single filers pay 1.40% up to $9,600 and 11.00% above $325,000; married filing jointly 1.40% up to $19,200 and 11.00% above $400,000; head of household 1.40% up to $14,400 and 11.00% above $487,500. Thresholds continue widening in steps through taxable years after 12/31/2030. Capital gains are not taxed.
Does Hawaii have a state income tax?
Yes. Hawaii taxes individual income on a graduated schedule topping out at 11%. 12 brackets from 1.40% to 11.00%. For taxable years beginning after 12/31/2024 (Act 46, SLH 2024 bracket-widening/'Green Affordability Plan II'): single filers pay 1.40% up to $9,600 and 11.00% above $325,000; married filing jointly 1.40% up to $19,200 and 11.00% above $400,000; head of household 1.40% up to $14,400 and 11.00% above $487,500. Thresholds continue widening in steps through taxable years after 12/31/2030.
| Item | Hawaii |
|---|---|
| State income tax | Yes, graduated |
| Top marginal rate | 11% |
| Capital gains | Not taxed |
| State sales tax | 4% (plus local) |
| Avg. property tax rate | 0.29% of home value |
| Estate / inheritance tax | Estate tax (exemption $5,490,000) |
How does Hawaii tax capital gains?
Hawaii has no separate, lower rate for capital gains. They are taxed as ordinary income at the same rates as your wages, up to 7.25%, on top of federal capital gains tax. See how capital gains tax works in 2026.
What about retirement income in Hawaii?
Retirement income is taxed differently from wages in many states. For how Hawaii treats Social Security, pensions, and 401(k)/IRA withdrawals, see Hawaii retirement taxes.
Sources
- Hawaii income tax rates and brackets: Hawaii Department of Revenue / Taxation.
- Hawaii capital gains treatment: Hawaii tax authority.
- Hawaii sales tax: Hawaii Department of Revenue.