The state of Hawaii requires residents and nonresidents to pay taxes on Hawaii income. Tax rates range from 1.4% to 11%. Hawaii offers deductions and credits to reduce tax liability, including for medical and dental expenses, mortgage interest, and child and dependent care costs. Hawaii has a progressive income tax system. Rates increase as income rises.
Progressive Income Tax Rates in Hawaii
Hawaii has progressive income tax rates from 1.4% to 11%. Higher rates apply to higher incomes. The 11% rate applies to incomes above $200,000 (single) and $400,000 (married filing jointly).
Calculating Taxes in Hawaii
In Hawaii, the state income tax ranges from 1.4% to 11% of your taxable income, depending on your tax bracket. There is a needful employee contribution of 1.45% for Medicare and 6.2% for Social Security taxes. If you live in Honolulu County, you will also need to pay an additional 0.5% surcharge for the Honolulu rail transit project.
Gross salary is the total amount you earn before any taxes or deductions. Net salary, often referred to as ‘take-home pay’ or ‘pay after tax’, is the amount you receive after all deductions like federal, state, and local taxes, social security, and other benefits are subtracted.