PERSONAL INCOME TAX (Chapter 235) - On net incomes of individual taxpayers. Income tax rate schedules vary from 1.4% to 11.00% based on taxable income and filing status. Long term capital gains are taxed at a maximum of 7.25%.
Itemized deductions generally follow federal law. Taxpayers with federal adjusted gross income over certain thresholds (single, $100,000; married filing joint, $200,000; head of household, $150,000) are not allowed the deduction for state taxes. For taxable years beginning before January 1, 2016, itemized deductions except for charitable contributions are hard capped for taxpayers with federal adjusted gross income over the thresholds mentioned earlier in this paragraph. The hard cap amounts are: single, $25,000; married filing joint, $50,000; head of household, $37,500.
Standard deduction amounts are: single, $2,200; married filing joint, $4,400; married filing separate, $2,200, head of household, $3,212.
Exemptions are: individuals, $1,144 per person (double for those over 65); blind, deaf, or disabled persons, $7,000; estates, $400; simple trusts, $200; complex trusts, $80; and first $6,076 income from service as a military reservist. Military pay of residents is taxable.
Taxes must be withheld by employers; taxpayers must file estimated income returns and pay estimated taxes quarterly.
Distribution: State general fund and funds designated by check-off on return
SOURCE: Compiled by the Tax Foundation of Hawaii from the Hawaii Revised Statutes, as amended through the 2013 legislative session, and Revised Ordinances for various counties. Consult the statute, ordinance, rules, or regulations for specific cases or circumstances.
Last Revised: May 23, 2014