Personal Income Tax - Tax Foundation of Hawaii Summary of Taxes in Hawaii

PERSONAL INCOME TAX (Chapter 235) - On net incomes of individual taxpayers. Income tax rate schedules vary from 1.4% to 8.25% based on taxable income and filing status. For tax years beginning after December 31, 2001, tax rates for individual filers start at 1.4% on the first $2,000 of taxable income to 8.25% over $40,000 taxable income. Long term capital gains taxed at a maximum of 7.25%.

Itemized deductions generally follow federal law. Standard deduction amounts are: single, $1,500; married filing joint, $1,900; married filing separate, $950, head of household, $1,650.

Exemptions are: individuals, $1,040 per person (double for those over 65); blind, deaf, or disabled persons, $7,000; estates, $400; simple trusts, $200; complex trusts, $80; and first $1,750 income from service as a military reservist. Military pay of residents is taxable.

Taxes withheld by employers; other taxpayers must file estimated income returns and pay estimated taxes quarterly.

Distribution: State general fund and state election campaign fund

(note: up to $2 on joint returns may be designated for the state election campaign fund if income tax liability exists - designation does not reduce income tax refund or increase tax liability;

a contribution up to $4 on joint returns may be designated from tax refunds to supplement school repair and maintenance or the state public library system through a checkoff on the income tax form - income tax revenues are not diverted to the programs - taxpayer's refund will be reduced by the amount designated for school repair and maintenance or state public library system)

SOURCE: Compiled by the Tax Foundation of Hawaii from the Hawaii Revised Statutes (1968), as amended, and Revised Ordinances for various counties. Consult the statute, ordinance, rules, or regulations for specific cases or circumstances.