Hawaii State Income Tax 2023 - 2024

Hawaii State Income Tax is a progressive tax, meaning it has different rates for each taxable income bracket. This is one factor contributing to Hawaii having one of the highest overall tax burdens in the country for high-income taxpayers. You can determine your Hawaii taxable income by adding up all of your itemized deductions and subtracting the standard deduction, which is currently $2,200 for single filers and $4,400 for joint filers. You can also subtract any contributions made to an individual housing account or legal services plan. Like the federal income tax, the state of Hawaii has a standard deduction, personal exemptions, and dependent exemptions. The tax brackets are also tied to the Federal income tax system but adjusted for inflation.

Despite these tax breaks, Hawaii still has a high cost of living and is the second most expensive place to live in the country. In addition to the federal and Hawaii state income taxes, Hawaii residents are subject to a variety of other taxes, including property taxes, sales taxes, and fuel taxes. Fortunately, many ways to reduce your Hawaii state income tax liability include:

• Buying renewable energy projects.
• Taking advantage of state tax incentives.
• Using pretax deduction strategies like charitable giving.

How to File Hawaii State Income Tax?

Individuals file personal income tax returns quarterly or semiannually via Hawaii Tax Online, depending on their annual taxable income. They may also pay their tax balance due using this site. You can also use the Hawaii Tax Online search function to check the status of your refund or a tax return, or to look up tax forms and accounts. The filing deadline for Hawaii State Income Tax is April 20.