Hawaii Tax and CPA Services: State, County and City Taxes

Hawaii has one of the most graduated individual income taxes in the country, and it does not have a sales tax at all. Instead, businesses pay a general excise tax on gross income, with a county surcharge in four counties, and the way that tax interacts with pricing is unlike anything on the mainland. This page covers what residents, remote workers, landlords and business owners should know about Hawaii taxes. We serve Hawaii clients remotely from our Naperville, Illinois office.

Individual income tax

For tax year 2025, the Department of Taxation's brackets for joint filers begin at 1.4 percent on the first $19,200 and rise through 3.2, 5.5, 6.4, 6.8, 7.2, 7.6, 7.9, 8.25, 9 and 10 percent to 11 percent on taxable income over $650,000. Single filers and heads of household use schedules with different breakpoints; head-of-household brackets, for example, start with 1.4 percent through $14,400. Standard deduction amounts for 2025 are $8,800 for joint filers or surviving spouses, $6,424 for heads of household and $4,400 for single filers and married persons filing separately.

Hawaii's filing deadline is April 20, not April 15. The Department grants an automatic six-month extension to October 20 without a form if you are due a refund or you pay the properly estimated tax by the April deadline. For nonresidents who claim the refundable earned income tax credit, a 2025 law requires reducing the credit using the ratio of Hawaii adjusted gross income to federal adjusted gross income.

Nonresidents with Hawaii-source income, including wages for work performed in Hawaii and income from rental property, file a Hawaii return. Remote workers and people relocating to or from Hawaii should get the residency date right, since part-year filers prorate. See our multi-state tax service.

Business taxes

Corporations and other entities register with the Department of Taxation using Form BB-1, which carries a one-time $20 registration fee, and get a Hawaii Tax ID. Registration belongs in the formation checklist; see business formation and entity selection.

Pass-through entity (PTE) election. Partnerships and S corporations may elect to be taxed at the entity level by timely filing Form N-362E. Under Act 50 of 2024, the PTE tax is imposed on the distributive shares and guaranteed payments of qualified members, meaning individuals, trusts and estates, at 9 percent, and the PTE credit can be carried forward until used. A single-member LLC cannot elect unless it is taxed as an S corporation. The stated purpose of the law is to let taxpayers deduct Hawaii income taxes on the federal return. See SALT deduction and property taxes.

General excise tax

Hawaii has no sales tax. The Department explains that the general excise tax is assessed on all business activities. The rate is 0.15 percent for insurance commissions, 0.5 percent for wholesaling, manufacturing, producing, wholesale services and use tax on imports for resale, and 4 percent for everything else. The GET is a tax on the business, not on the customer, and applies to gross income with no deduction for costs. A business may choose to pass it on visibly, but it is not required to.

The Legislature also allows counties to add a surcharge on the 4 percent activities. Honolulu (since 2007), Kauai, Hawaii County and Maui each have a 0.5 percent surcharge in effect through December 31, 2030, which lets a business pass on a maximum of 4.712 percent. Periodic returns are due on the 20th day of the month after the period closes, and annual returns on April 20. Because the tax hits revenue at each stage, pricing and contract language matter; see our sales tax service.

Payroll in Hawaii

• Withholding: employers withhold Hawaii income tax from wages using the Department's published withholding tables, which it updates by tax year. See state income tax withholding.
• Temporary Disability Insurance: Hawaii's TDI law, enacted in 1969, requires employers to provide partial wage replacement coverage for eligible employees with non-work-related injury or sickness, including pregnancy. The Disability Compensation Division oversees it.
• Unemployment insurance: run by the Department of Labor and Industrial Relations, which sets the taxable wage base and rates annually; check your current notice. See state unemployment insurance.
• Remote and traveling staff: employees working in Hawaii and elsewhere raise multi-state payroll issues.

Counties and property tax

Hawaii has four counties: Honolulu (the City and County of Honolulu on Oahu), Hawaii, Maui and Kauai. Each administers its own real property tax and sets rates, and each has the GET surcharge described above. Property owners should check the county's classification of their property, since rates differ by class. Hawaii has no separate city-level income or wage tax. For comparisons with West Coast markets, see California.

How we can help

We prepare Hawaii resident, part-year and nonresident returns, advise on GET registration and pass-through elections, and coordinate payroll including TDI. If you receive a notice from the Hawaii Department of Taxation, see state tax notices and representation. Contact us to begin; this page is general information.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.