Disclaimer: Calculations are estimates based on tax rates as of Dec. 2021 and data from the Tax Foundation. These rates are subject to change. Check the IRS website for the latest information about income taxes and your state tax website for state-specific information. Our calculator doesn’t consider both 401k and IRA deductions due to the tax law limitations. Please note, the amount of your IRA deductions may vary. You should speak with a tax professional to determine your tax situation.
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What You Need To Know About Hawaii State Taxes
The state of Hawaii requires you to pay taxes if you are a resident or nonresident and receive income from a Hawaii source. The state income tax rates range from 1.4% to 11%, and the Aloha State doesn’t charge sales tax.
Hawaii offers tax deductions and credits to reduce your tax liability, including a deduction for medical and dental expenses, a deduction for home mortgage interest, and a tax credit for child and dependent care costs.
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Federal Filing Fee
Hawaii Income Tax Brackets and Rates: Single or Married/Registered Domestic Partner Filing Separately
Hawaii Income Tax Brackets and Rates: Married/Registered Domestic filing jointly and Qualified Widow(er)
Hawaii Income Tax Brackets and Rates: Head of Household
Income Tax Deductions for Hawaii
Hawaii has a standard deduction, and the amount you can deduct depends on your filing status. For the 2021 tax year, the standard deduction amounts are as follows:
- Single or married filing separately: $2,200
- Married filing jointly or qualifying widow(er): $4,400
- Head of household: $3,212
In Hawaii, taxpayers can choose to itemize their deductions if the amount is greater than their allowable standard deduction. However, those married filing separately must choose the same method of deduction as their spouse.
The state offers several itemized deductions, including:
Medical and Dental Expenses
You’re allowed to deduct the cost of certain medical and dental expenses, such as insurance premiums, prescription drugs, doctor visits, diagnostic tests, and nursing help. You can only deduct the portion of these expenses that exceeds 7.5% of your Hawaii adjusted gross income (AGI) and certain expenses are subject to additional limitations. For example, the percentage of your insurance premium that you can deduct is determined based on your age at the time of filing.
Home Mortgage Interest
If you took out a mortgage or home equity loan prior to Oct. 13, 1987, there is no limit to the amount of home mortgage interest you can deduct. Mortgages taken out after that date are subject to certain limitations and those limitations depend on how the loan funds are being used.
Casualty and Theft Losses
Typically, you can deduct losses from casualty and theft, provided that the total amount of all reported losses exceeds 10% of your Hawaii AGI, and each reported loss is worth over $500.
However, it’s important to note that the state decided to waive those limitations for resulting from any federally declared disaster occurring between Jan. 1, 2020 and Feb. 25, 2021.
Hawaii offers taxpayers the opportunity to take advantage of a few other miscellaneous deductions:
- Job-related expenses which you weren’t reimbursed
- Gambling losses to the extent of the gambling winnings reported on your federal return
- Tax preparation fees
Hawaii State Income Tax Credits
Food and Exercise Tax Credit
If you made less than $50,000 during the 2021 tax year ($30,000 for single filers), you could qualify for a tax credit worth up to $110 per exemption qualification. This credit phases out at higher incomes, though, so the less you make, the larger the credit you’ll receive.
This credit is refundable.
Child and Dependent Care Expenses Tax Credit
If you pay for the care of a child under the age of 13, a dependent or spouse who can’t care for themselves so that you could work, you may qualify to receive a credit of up to 25% of those expenses.
This credit is refundable.
Low Income Household Renters Tax Credit
If your Hawaii adjusted gross income is less than $30,000 for the tax year and you paid over $1,000 in rent, you may qualify for a tax credit worth $50 for each qualifying exemption in your household.
This credit is refundable.
Do I Have to Pay Income Tax in Hawaii?
Anyone doing business in Hawaii must file a state income tax return, regardless of whether or not the individual receives any taxable income from the business. But generally, individuals who receive income subject to taxation under the Hawaii Income Tax law must file as follows:
Individuals Under Age 65:
- Married fling separately: $3,344
- Single: $3,344
- Head of household: $4,356
- Qualifying widow(er): $5,544
- Married filing jointly: $6,688
Individuals Age 65 or Older
- Married filing separately: $4,488
- Single: $4,488
- Head of household: $5,500
- Qualifying widow(er): $6,688
- Married filing jointly (one partner over 65): $7,832
- Married filing jointly (both partners over 65): $8,976
Hawaii has different threshold amounts for those who are blind, deaf, disabled, a nonresident or dependent. You should check with the state to determine if you’re required to file a tax return for the year.
Sales Tax and Sales Tax Rates
Hawaii doesn’t have a sales tax.
Property Taxes and Property Tax Rates
Property Tax Rates
Property taxes are assessed at the county level.
Capital Gains Taxes
Capital gains are currently taxed at a rate of 7.25%
Inheritance and Estate Tax and Inheritance and Estate Tax Exemption
Generally, only estates worth more than $5,490,000 must file an estate tax return in Hawaii.