Hawaii has one of the most complex income tax systems in the country, with twelve separate brackets ranging from 1.4% up to 11% for the highest earners — the most brackets of any US state. Despite the high headline top rate, most middle-income residents pay a much lower effective rate because the brackets are spread across a wide income range. Hawaii's exceptionally high cost of living, particularly housing, means that nominal high salaries often translate into a more modest standard of living than the same salary would provide on the mainland. The state does not tax Social Security benefits and exempts most public and private pension income, which provides meaningful relief for retirees. Hawaii recently passed significant tax reform increasing the standard deduction and adjusting brackets to provide relief for middle and lower income residents.
| Tax rate | Income range (single filer) |
|---|---|
| 1.4% | $0 – $9,600 |
| 3.2% | $9,601 – $14,400 |
| 5.5% | $14,401 – $19,200 |
| 6.4% | $19,201 – $24,000 |
| 6.8% | $24,001 – $36,000 |
| 7.2% | $36,001 – $48,000 |
| 7.6% | $48,001 – $125,000 |
| 7.9% – 11% | Over $125,000 (5 additional brackets) |
A $75,000 salary in Hawaii results in approximately $4,650 in state income tax (effective ~6.2%), plus $12,580 federal tax, $4,650 Social Security, and $1,088 Medicare. Annual take-home is approximately $52,032, or $2,001 bi-weekly.
Use our US income tax calculator to compare your take-home pay across all 50 states. You may be surprised how much location affects your net income.