Hawaii has a progressive income tax system, which means that the tax rate increases as your income increases. This article will discuss, "What Are the Income Tax Rates in Hawaii? How Do They Compare to Other States?" Let's get started.
What Are the Income Tax Rates in Hawaii?
Hawaii has a progressive income tax system, which means that the tax rate increases as your income increases. The state income tax rates range from 1.4% to 11%, and Aloha State doesn't charge sales tax.
Income Tax Rates in Hawaii
Income bracket of $0 to $18,750: The tax rate is 1.4%.
Income bracket of $18,751 to $40,000: The tax rate is 3.2%.
Income bracket of $40,001 to $80,000: The tax rate is 4.4%.
Income bracket of $80,001 to $150,000: The tax rate is 5.4%.
Income bracket of $150,001 to $250,000: The tax rate is 6.4%.
Income bracket of $250,001 to $500,000: The tax rate is 7.4%.
Income bracket of $500,001 or more: The tax rate is 11%.
In addition to the state income tax, Hawaii also has a local income tax in some counties. The local income tax rates vary by county, but they are generally lower than the state income tax rates.
How Do Hawaii's Income Tax Rates Compare to Other States?
Hawaii's income tax rates are on the higher end of the spectrum compared to other states. For example, the top income tax rate in California is 13.3%, and the top income tax rate in New Jersey is 10.75%. However, Hawaii's income tax rates are still lower than the top income tax rates in some states, such as New York (8.82%) and Minnesota (9.85%).
Conclusion:
Hawaii has a progressive income tax system with rates that range from 1.4% to 11%. The state doesn't charge sales tax, but there is a local income tax in some counties. Hawaii's income tax rates are on the higher end of the spectrum compared to other states, but they are still lower than the top income tax rates in some states.
What Are the Income Tax Rates in Hawaii? How Do They Compare to Other States? - hopefully, this article can help you to get some knowledge.
