Hawaiʻi: Who Pays? 7th Edition
Hawai’i
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All figures and charts show 2024 tax law in Hawai’i, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis includes nearly all (99.5 percent) state and local tax revenue collected in Hawai’i.
State and local tax shares of family income
| Top 20% | |||||||
| Income Group | Lowest 20% | Second 20% | Middle 20% | Fourth 20% | Next 15% | Next 4% | Top 1% |
| Income Range | Less than $21,900 | $21,900 to $44,200 | $44,200 to $80,100 | $80,100 to $136,600 | $136,600 to $278,200 | $278,200 to $594,900 | Over $594,900 |
| Average Income in Group | $12,200 | $33,500 | $61,700 | $107,600 | $175,900 | $367,700 | $1,201,100 |
| Sales & Excise Taxes | 8.8% | 8.6% | 6.7% | 5.1% | 3.9% | 2.6% | 1.5% |
| General Sales–Individuals | 4.8% | 5.6% | 4.4% | 3.2% | 2.3% | 1.3% | 0.5% |
| Other Sales & Excise–Ind | 2.3% | 1.3% | 0.8% | 0.6% | 0.4% | 0.3% | 0.1% |
| Sales & Excise–Business | 1.8% | 1.7% | 1.5% | 1.3% | 1.2% | 1.1% | 0.9% |
| Property Taxes | 4.6% | 2.6% | 2.5% | 3.1% | 2.4% | 2% | 1.7% |
| Home, Rent, Car–Individuals | 3.7% | 1.9% | 1.8% | 2.4% | 1.7% | 1.1% | 0.4% |
| Other Property Taxes | 0.8% | 0.7% | 0.7% | 0.7% | 0.7% | 0.9% | 1.3% |
| Income Taxes | 0.5% | 2.4% | 4.9% | 5.1% | 5.5% | 5.6% | 6.9% |
| Personal Income Taxes | 0.5% | 2.3% | 4.9% | 5% | 5.5% | 5.5% | 6.8% |
| Corporate Income Taxes | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% |
| Other Taxes | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0% |
| TOTAL TAXES | 14.1% | 13.7% | 14.2% | 13.4% | 11.8% | 10.2% | 10.1% |
| Individual figures may not sum to totals due to rounding. | |||||||
ITEP Tax Inequality Index
ITEP’s Tax Inequality Index measures the effects of each state’s tax system on income inequality. According to this measure, Hawai’i has the 22nd most regressive state and local tax system in the country. Income disparities are larger in Hawai’i after state and local taxes are collected than before. (See Appendix B for state-by-state rankings and the report methodology for additional detail.)
Tax features driving the data in Hawai’i
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Requires combined reporting for the corporate income tax but excludes profits booked overseas, including in tax haven countries
Graduated rate structure for the real estate transfer tax
Personal exemption phases out for upper-income taxpayers
Limits itemized deductions for upper-income taxpayers
Refundable Earned Income Tax Credit (EITC)
Graduated personal income tax structure
Refundable dependent care tax credit
Levies a state estate tax
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Preferential income tax rates for income from capital gains
Partial income tax deduction for state income taxes paid
Comparatively high reliance on sales and excise taxes
State and local sales tax bases include groceries
No Child Tax Credit (CTC)
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