Hawaii Tax Overview
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Income Tax Rates:
- Range from 1.4% to 11%
- Residents taxed on out-of-state income
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Property Tax:
- Lowest rate in the nation at 0.28%
- Median annual payment is $1,871
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General Excise Tax:
- 4% tax on business activities
- Oahu surcharge of 0.5%, totaling 4.5%
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Taxation on $60,000 Income:
- Net income of $44,980 yearly
- Monthly income of $3,748
- Tax rate of 25.0%, marginal tax rate of 37.8%
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Property Tax Breaks:
- Vary by county, with Honolulu offering $140,000 home exemption
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Cost of Living:
- Highest in the U.S.
- Most expensive retirement state
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Grocery Taxation:
- Fully taxed, unlike mainland states
Hawaii Income Tax Comparison
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High Income Tax Rates:
- Ranging from 1.4% to 11%
- California tops with rates from 1% to 13.30%
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Tax Structure:
- Progressive rates apply to brackets
- Higher incomes pay a greater share
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Property Tax Impact:
- Lowest rate nationally at 0.28%
- Median payment of $1,871 due to high home values
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Excise Tax:
- 4% general tax on business activities
- Oahu includes a 0.5% surcharge
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Other Factors:
- Honolulu homeowners 65+ receive a $140,000 home exemption
- Hawaii ranks fifth highest in total 2018 tax burden per capita