Hawaii · the numbers
Hawaii figures at a glance, 2026
The Hawaii numbers for the 2026 return on one page: the twelve brackets by filing status, the new standard deduction, the exemptions, the capital gains rate, the credits and their income limits, the estate tax line, the general excise tax, and the dates. Each with a one-line note, and a short list of what changed from 2025.
By Charles Trautman, EA, editor
Need to Know Tax · written from Hawaii Department of Taxation sources, November 3, 2026; updated November 12, 2026 after the election · not yet reviewed by a Hawaii practitioner
Hawaii’s return has more moving parts than most, twelve brackets and a long list of credits, but almost none of them moved for 2026. The standard deduction did: $8,000 single, $16,000 joint, $12,000 head of household, up from $4,400 / $8,800 / $6,424. Everything else on this page is the same number as last year unless the note says otherwise, because Hawaii indexes nothing for inflation. Figures the Department of Taxation has not yet published for 2026 are marked.
Rates and brackets
| Rate | Single or MFS, up to | Head of household, up to | Joint or surviving spouse, up to |
|---|---|---|---|
| 1.4% | $9,600 | $14,400 | $19,200 |
| 3.2% | $14,400 | $21,600 | $28,800 |
| 5.5% | $19,200 | $28,800 | $38,400 |
| 6.4% | $24,000 | $36,000 | $48,000 |
| 6.8% | $36,000 | $54,000 | $72,000 |
| 7.2% | $48,000 | $72,000 | $96,000 |
| 7.6% | $125,000 | $187,500 | $250,000 |
| 7.9% | $175,000 | $262,500 | $350,000 |
| 8.25% | $225,000 | $337,500 | $450,000 |
| 9% | $275,000 | $412,500 | $550,000 |
| 10% | $325,000 | $487,500 | $650,000 |
| 11% | over $325,000 | over $487,500 | over $650,000 |
Taxable income means federal AGI after Hawaii’s additions and subtractions, deduction and exemptions. Married filing separately uses the single column. Tax on the first $48,000 single is $2,539; on the first $96,000 joint, $5,078; on the first $72,000 head of household, $3,809. Source: Department of Taxation Announcement 2024-03.
The brackets did not change from 2025 and will not be indexed. They change next for tax year 2027 under Act 24 (2026): the low brackets widen, the 3.2% and 5.5% rates drop to 2.5% and 5%, the 11% line stays at $325,000 / $487,500 / $650,000, and a 13% rate starts at $500,000 single, $750,000 head of household and $1,000,000 joint.
The core figures
| Item | 2025 | 2026 | Note |
|---|---|---|---|
| Starting point | Federal AGI | Federal AGI | Form N-11 line 7, then Hawaii additions and subtractions |
| Standard deduction, single or MFS | $4,400 | $8,000 | Act 46 (2024); rises to $9,000 in 2028 |
| Standard deduction, joint or surviving spouse | $8,800 | $16,000 | Rises to $18,000 in 2028 |
| Standard deduction, head of household | $6,424 | $12,000 | Rises to $13,500 in 2028 |
| Extra standard deduction for age or blindness | None | None | IRC 63(f) is non-operative in Hawaii |
| Personal exemption, per person including dependents | $1,144 | $1,144 | Hawaii’s substitute for the federal exemptions; not indexed |
| Exemption for a taxpayer or spouse 65 or older | $2,288 | $2,288 | Two exemptions instead of one; worth at most $126 of tax |
| Exemption for a blind, deaf or totally disabled person | $7,000 | $7,000 | Taken in place of all other exemptions |
| Long-term capital gains, alternative maximum rate | 7.25% | 7.25% | Helps only above the 7.2% bracket; qualified dividends get no break |
| State and local income tax deduction (Hawaii Schedule A) | Below $100,000 / $150,000 / $200,000 | Same | Federal AGI limits for single or MFS / HOH / joint; HRS 235-2.4(j) |
| Cap on total itemized deductions above those AGI levels | $25,000 / $37,500 / $50,000 | Same | Single or MFS / HOH / joint |
| Social Security and railroad retirement | Exempt | Exempt | Subtracted in full at any age or income |
| Employer-funded pensions (military, federal, state ERS, private DB) | Exempt | Exempt | No cap; distributions from employee contributions, 401(k)s and IRAs are taxed |
| National Guard and reserve pay exclusion | $8,636 | to come (verify) | Tied to an E-5’s pay; 2026 figure not published |
| Individual Housing Account deduction (first home) | $5,000 | $5,000 | Rises to $20,000 single / $40,000 joint in 2027 (Act 217, 2026) |
| Local income tax | None | None | Counties levy property tax and a GET surcharge, not income tax |
The credits
| Credit | Figure | Refundable? | Income limit |
|---|---|---|---|
| Earned income tax credit (Form N-356) | 40% of the federal EITC (verify sunset) | Yes | Federal EITC limits |
| Refundable food/excise tax credit (Form N-311) | $220 per exemption under $15,000 of federal AGI, stepping down to $110 at $30,000–$40,000; joint, HOH and surviving-spouse filers also get $90 at $40,000–$50,000 and $70 at $50,000–$60,000 | Yes | $40,000 single; $60,000 joint, HOH, surviving spouse; must be in Hawaii more than nine months (HRS 235-55.85; confirm the 2026 N-311 (verify)) |
| Child and dependent care credit | 50% of expenses at the lowest Hawaii AGI, sliding to 25%; expenses up to $10,000 one child, $20,000 two or more | Yes | None; the percentage falls with income |
| Low-income household renters credit | $50 per exemption | Yes | Hawaii AGI under $30,000; rent over $1,000 on a home not exempt from property tax |
| Child passenger restraint system credit | $25 | Yes | None |
| Renewable energy technologies credit (Form N-342) | 35% of a solar system, up to $5,000 per residential system; $2,250 solar water heating; 20% wind | Refundable at a reduced rate, or nonrefundable with carryforward | None for 2026; $175,000 single / $350,000 joint from 2027 (Act 24, 2026) |
| Credit for income tax paid to another state (Schedule CR) | Lesser of the other state’s tax or the Hawaii tax on the same income | No | None |
| Pass-through entity tax credit (Form N-362) | The owner’s share of tax the entity elected to pay | Yes | None; the credit is added back to income |
| Child tax credit | None at the state level | ||
| K-12, tuition or 529 credit or deduction | None | 529 withdrawals for K-12 are added back |
The refundable credits go on Schedule X and are paid even when no tax is due, which is why a low-income household with Hawaii withholding of zero should still file. The food/excise table is the statute’s; its current text carries a repeal-and-reenactment date of December 31, 2027.
Beyond the income tax
| Item | 2026 |
|---|---|
| Estate tax | Exclusion $5,490,000 per person, fixed since 2018 and not indexed; graduated rates 10% to 20%; Form M-6 due nine months after death; portability only if an M-6 was filed at the first death. No inheritance or gift tax. |
| General excise tax | 4% state rate plus a 0.5% county surcharge in all four counties, on gross receipts of nearly every business including rent and services; passed to customers at up to 4.712%. Hawaii has no sales tax. |
| Transient accommodations tax | 11% from January 1, 2026, up from 10.25%; owed by short-term rental owners on top of GET |
| HARPTA withholding on a nonresident’s sale of Hawaii real estate | 7.25% of the gross sales price, Form N-288; recovered on Form N-15 |
| County home exemption (property tax) | Honolulu $120,000, $160,000 at 65; Hawaii County $50,000 rising by age to $125,000 at 75 (verify); Kauai $220,000, $260,000 at 60 (verify); Maui $300,000 (verify). Claimed with the county, not on the N-11. |
| Reciprocal states for wages | None |
Filing and payment dates
| Date | What |
|---|---|
| Wednesday, January 20, 2027 | Fourth 2026 estimated payment, Form N-200V |
| Tuesday, April 20, 2027 | Form N-11 or N-15 and full payment due; first 2027 estimated payment; automatic extension begins if 100% of the tax is paid |
| Monday, June 21, 2027 | Second 2027 estimated payment (the 20th is a Sunday) |
| Monday, September 20, 2027 | Third 2027 estimated payment |
| Wednesday, October 20, 2027 | Extended due date; no extension form exists |
Estimated payments are required when the expected balance after withholding and credits is $500 or more and withholding and credits cover less than the smaller of 60% of this year’s tax or 100% of last year’s. Both tests are easier than the federal ones. The underpayment penalty is figured on Form N-210. Refunds on e-filed returns are quoted by the Department at 7 to 8 weeks, paper at 9 to 10.
What changed from 2025
Standard deduction: $8,000 / $16,000 / $12,000. Up from $4,400 / $8,800 / $6,424, the second step of Act 46 (2024). Worth about $250 to $550 of tax for a typical working household. Withholding tables changed December 5, 2025 to match.
Conformity date: December 31, 2025. Act 35 (2026) brings the July 2025 federal law into the 2026 return. Adopted: the tips deduction, the non-itemizer charitable deduction, Trump accounts, the permanent repeal of miscellaneous itemized deductions. Rejected: the overtime deduction, car-loan interest, 100% bonus depreciation and production-property expensing, immediate research expensing. Not applicable: the senior deduction and the federal SALT cap. Form mechanics for the adopted items are to come.
2022 EITC carryforward ends. The nonrefundable 2022 credit cannot be claimed for tax years beginning after December 31, 2025 (Act 25, 2025).
Transient accommodations tax: 11%. Up from 10.25% on January 1, 2026.
Already enacted for 2027, not 2026. New rate schedule with 2.5% and 5% low rates and a 13% top rate (Act 24); solar credit income limit of $175,000 / $350,000, a $40 million statewide cap and certification (Act 24); voluntary Hawaii withholding on 1099-R distributions (Act 118); IHA deduction to $20,000 / $40,000 (Act 217).
Worked example: where the 7.25% capital gains rate starts to help
A married couple with $60,000 of wages and a $50,000 long-term gain, taking the $16,000 standard deduction and two exemptions of $1,144. Hawaii taxable income is $91,712. The alternative rate applies only to the gain, and only if it beats the regular brackets.
| Regular brackets | With the 7.25% alternative | |
|---|---|---|
| Tax on ordinary income of $41,712 (joint schedule: $1,104 on the first $38,400 plus 6.4% of $3,312) | $1,316 | $1,316 |
| Tax on the $50,000 gain stacked on top ($41,712 to $91,712): 6.4% to $48,000, 6.8% to $72,000, then 7.2% | $3,453 | |
| Tax on the $50,000 gain at 7.25% | $3,625 | |
| Hawaii income tax | $4,769 | $4,941 |
The regular brackets win here, so the worksheet gives this couple nothing; the alternative rate only helps once ordinary income has carried taxable income past $72,000 joint or $36,000 single, where the regular rates exceed 7.25%. Gain arithmetic: 6.4% of ($48,000 − $41,712) = $402, plus 6.8% of $24,000 = $1,632, plus 7.2% of ($91,712 − $72,000) = $1,419. A couple with $150,000 of wages and the same gain would be entirely in the 7.6% bracket and would save $175 by using the 7.25% rate.
Behind the scenes: why nothing is indexed
Hawaii’s income tax figures are set by statute and change only when the Legislature changes them. The brackets held at their 2018 lines until Act 46 (2024), which was sold as the largest tax cut in the state’s history: it widens the brackets and raises the standard deduction in steps every other year through 2031, with the dates and dollars written into HRS 235-51 and 235-2.4 rather than tied to any inflation index. Act 24 (2026) then edited the 2027 step before it arrived. The credits work the same way: the food/excise table, the renters credit and the $1,144 exemption are flat figures, and the 40% EITC moves only because the federal credit underneath it is indexed. For a filer, that means the 2026 numbers on this page are the 2027 numbers too, except where an act has already said otherwise.
What to bring
- Last year’s N-11, to compare the standard deduction line and the exemption count
- Dates of birth for everyone on the return, for the age-65 exemption and dependent exemptions
- Form 1099-R statements and the plan’s funding history: whether the pension was employer-funded (exempt) or built from your own contributions (taxed)
- Rent paid in 2026 and the landlord’s name and address, for the renters credit
- Child care receipts with the provider’s GET license or tax ID, for the dependent care credit
- Brokerage 1099-B with long-term and short-term gains separated, for the capital gains worksheet
- Estimated payment confirmations from Hawaii Tax Online, with dates
Questions people ask
What is the Hawaii standard deduction for 2026?
$8,000 for a single filer or married filing separately, $16,000 for a joint return or surviving spouse, $12,000 for a head of household. It was $4,400 / $8,800 / $6,424 in 2025. There is no extra amount for age or blindness; the age break is a second $1,144 exemption at 65.
Did the Hawaii tax brackets change for 2026?
No. The twelve brackets, 1.4% to 11%, are the same as 2025, with the 11% rate starting at $325,000 single and $650,000 joint. They change for 2027 under Act 24 (2026), which lowers two of the low rates and adds a 13% rate over $500,000 single / $1,000,000 joint.
Is my pension taxed in Hawaii?
If your employer funded it, no: Social Security, military and federal retirement, state and county ERS pensions and private defined-benefit pensions are exempt at any age. If you funded it, yes: 401(k), 403(b), 457 and IRA distributions, and Roth conversions, are taxed at the regular rates with no age break.
What is the Hawaii capital gains rate?
Long-term gains are taxed at the lower of the regular rates or 7.25%. Short-term gains, ordinary dividends and qualified dividends are taxed as ordinary income, up to 11%.
How much is the food/excise credit?
Up to $220 per exemption for a household under $15,000 of federal AGI, falling in steps to zero at $40,000 single or $60,000 joint, head of household or surviving spouse, for people present in Hawaii more than nine months of the year. It is refundable and claimed on Form N-311 with Schedule X. Confirm the 2026 table on the Department’s form.
When is the Hawaii return due?
April 20, 2027, a Tuesday. The automatic six-month extension to October 20 needs no form, but it holds only if 100% of the tax is paid by April 20.
Twelve brackets, one new deduction figure, nothing indexed
Carry the $8,000 / $16,000 / $12,000 standard deduction and the $1,144 exemption into the brackets above and the Hawaii tax falls out; the rest of the page is credits and dates.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Forms and official pages named in this article
Sources and where to check
- Department of Taxation Announcement 2024-03: Act 46 (2024), bracket schedules and standard deduction through 2031
- Department of Taxation Announcement 2026-06: tax law changes from the 2026 legislative session
- Department of Taxation Announcement 2025-07: 2026 withholding tables
- HB 2329 CD1 (Act 35, 2026): conformity bill, with the standard deduction and SALT deduction limits in HRS 235-2.4
- SB 3125 CD2 (Act 24, 2026): 2027 rate schedules and credit changes
- Department of Taxation: E-Services and Where’s My Refund (refund timing)